Can My Landlord File a Judgment on Me for Breaking My Lease?

Leases are contracts and if you break a lease, your landlord can demand compensation. If you can't work things out with him, your landlord may take you to court. Unless you can show the judge that you had a lawful reason for breaking the lease, expect to have a money judgment issued against you.

Leases

A lease between landlord and tenant protects both parties: You agree to pay your rent and care for your rental home and, in exchange, your landlord gives you a safe home for a specific period. Failure to live up to the terms of a lease can result in civil penalties for either party. Breaking a lease is hard to do: Even if you have what you consider a good reason for moving out, such as job loss or transfer, the contract between you and your landlord still holds, and your landlord has a right to receive the rent you owe on the balance of the lease.

Landlord Remedies and Negotiations

If you break your lease, your landlord most likely will demand the balance of the rent for the remainder of the contract. If you refuse to pay the balance, be prepared to lose your security deposit and for your landlord to threaten a lawsuit. Your landlord may or may not make good on this threat. If you can get your landlord to accept a cash settlement in lieu of the full rent balance due, you may be able to avoid court. However, be sure to get a release from the lease in writing before handing over any money.

Consequences of a Judgment

The consequences of a lawsuit and judgment are grim. In addition to the rent balance, the judge may award your landlord punitive damages as well as court costs and legal fees. This can significantly increase your financial liability. Judgments can appear on your credit report for up to seven years if you pay it, or until the statute of limitations on unpaid judgments runs out (this can be 20 years or more, depending on your state). This information also shows up on tenant background screening reports, which can inhibit your ability to find a new place to live.

Defenses to a Lawsuit

If you broke your lease for good reason, you may be able to defend your actions in a lawsuit. For example, if your landlord refused to make repairs required by law after several requests, you may have a case for breaking your lease. In some states, your landlord may be required to make a good-faith effort to find a new tenant after you move out. If your landlord didn't do this, but is still suing you for the entire lease balance, you may be able to argue that his money demands are unreasonable because he didn't attempt to find a replacement tenant.

References

• Nolo: What Happens if a Tenant Breaks a Lease?
• Nolo: What's the Difference Between a Rental Agreement and a Lease?
• Apartment Ratings: The Legal Repercussions of Breaking Your Lease Agreement
• Nolo: If a Landlord Doesn't Make Required Repairs, What are the Consequences?
• Federal Trade Commission:Building a Better Credit Report