Maybe you got a job offer you can't refuse. Maybe your roommate bailed. Maybe your relationship ended and you can't afford the apartment alone. Whatever the reason, you're staring at your lease and wondering: what actually happens if I break it?
The short answer: it depends on your lease, your landlord, and your state. But here is the typical sequence of events — and what you can do at each stage to protect yourself.
The Timeline: What Happens Step by Step
Step 1: You Notify Your Landlord
The process starts when you tell your landlord you need to leave early. Do this in writing — email is fine. Include your intended move-out date and the reason (you don't have to share details, but it helps with negotiation). Most leases require 30 to 60 days' notice, even for early termination.
Pro tip: The more notice you give, the better. Landlords are far more willing to work with you when they have time to find a replacement tenant.
Step 2: Your Landlord Reviews the Lease Terms
Your landlord (or property management company) will check your lease for the early termination clause. This is where the financial picture becomes clear. Common structures include:
- Fixed penalty: A flat fee, usually 1–3 months' rent
- Buyout clause: A set dollar amount to exit cleanly
- Remaining rent: You owe all rent through the end of the lease term
- No clause at all: Defaults to state law (often remaining rent minus landlord's duty to mitigate)
Step 3: Financial Consequences Hit
Once you move out, the financial consequences begin. Here is what most renters face:
The Financial Consequences
Early Termination Fee
Most leases charge a penalty of one to three months' rent. On a $2,000/month apartment, that is $2,000 to $6,000. Some leases use a sliding scale — the earlier you leave, the more you pay.
Rent Owed During Vacancy
In most states, you remain responsible for rent until your landlord re-rents the unit or your lease term ends. However, most states require landlords to make a reasonable effort to find a new tenant (the duty to mitigate damages). They cannot just leave the unit empty and bill you for the full remaining term.
Security Deposit
Expect to lose some or all of your security deposit. Landlords typically apply it toward unpaid rent, cleaning, or lease-break penalties. In some states, landlords must provide an itemized list of deductions within 14 to 30 days of move-out.
Credit Score Impact
This is where many renters get blindsided. Breaking a lease does not automatically hurt your credit. But if you owe money and don't pay it, here is what happens:
- Your landlord sends the unpaid balance to a collection agency
- The collection agency reports the debt to the credit bureaus
- Your credit score drops by 50 to 100+ points
- The collection account remains on your report for up to 7 years
This can make it harder to rent your next apartment, qualify for a car loan, or get approved for a mortgage. Many landlords run credit checks and specifically look for collections from previous landlords.
Legal Consequences
In most cases, breaking a lease is a civil matter, not a criminal one. Your landlord cannot have you arrested for leaving early. But they can:
- Sue you in small claims court for unpaid rent and penalties
- Obtain a judgment against you (which shows up on your credit report)
- Garnish your wages in some states if you don't pay the judgment
- Report the debt to collections
Most landlords prefer to settle out of court because lawsuits cost them time and money too. This is actually leverage you can use in negotiation.
Rental History Impact
Beyond your credit score, breaking a lease can show up on tenant screening reports. Services like RentBureau, CoreLogic, and TransUnion SmartMove track rental payment history. If your landlord reports the broken lease, future landlords will see it when you apply for a new apartment.
This is one of the most overlooked consequences. Even if you pay the penalty in full, some landlords still report the early termination. Ask your current landlord whether they report to tenant screening services, and try to negotiate keeping it off your record as part of any settlement.
Your Landlord's Duty to Mitigate
This is one of the most important concepts in lease-breaking. In the majority of U.S. states, landlords have a legal obligation to make reasonable efforts to re-rent your unit after you leave. They cannot simply leave it empty and charge you rent for the entire remaining term.
"Reasonable efforts" typically means advertising the unit, showing it to prospective tenants, and accepting qualified applicants. If your landlord makes no effort to re-rent and then tries to charge you for months of vacancy, you may have a strong legal defense.
What to Do If You Need to Break Your Lease
- Read your lease carefully. Understand the early termination clause, notice requirements, and any buyout options.
- Check your state's tenant rights. Some states offer protections you may not know about (military, DV, habitability issues).
- Talk to your landlord early. Approach them honestly, in writing, with as much notice as possible.
- Negotiate. Propose a reasonable settlement — many landlords will accept less than the full penalty to avoid the hassle.
- Offer to find a replacement tenant. This removes the landlord's biggest concern (vacancy) and gives you leverage.
- Get everything in writing. Any agreement to reduce penalties or release you from the lease should be documented and signed.
- Leave the unit in perfect condition. Don't give your landlord any excuse to keep your deposit or add charges.
For future leases, products like LeaseFlex can cover these penalties before they happen — giving you flexibility without the financial risk.
Bottom Line
Breaking a lease is not the end of the world, but it does have real financial and legal consequences. The typical cost ranges from $2,000 to $7,000+, and unpaid balances can damage your credit for years.
The best approach: give maximum notice, negotiate in good faith, know your legal rights, and get every agreement in writing. Most landlords would rather make a deal than go through the hassle of collections or court — use that to your advantage.