Sample Agreement Regarding Cancellation of Lease

Most tenants don't sign a lease thinking that they're going to move out before the lease term is up. But sometimes life gets in the way, and you need to move out before the end date stated in the lease. If you need to break your lease by moving out of a rental early, here are some things to consider, along with a sample agreement you can use if you and your landlord are able to negotiate a smooth transition.

Give Plenty of Notice

When you know that you're going to have to break your lease, it's a good idea to notify your landlord as soon as possible. The more notice you give, the better your chances are that your landlord will find a new tenant (and not end up using your whole security deposit or sue you in small claims court for rent for the remaining lease term).

Put Your Notice in Writing

You can talk to your landlord in person about the fact that you need to move, but be sure to follow up in writing with an official notice. A written notice might even be required by your lease. Date the notice, and provide the date by which you will be fully out of the rental.

Also, in your notice, be sure to give the landlord a forwarding address to send your security deposit to. Just because you're breaking your lease doesn't mean that you've lost your right to have your security deposit returned. If, for example, the landlord finds an immediate replacement for your rental, and you leave the rental clean and undamaged, it's possible that you should receive a full refund of your security deposit.

Negotiate Your Exit With Your Landlord

Landlords in most states have a duty to mitigate their losses when a tenant breaks their lease. This means that the landlord can't just sit back, leave the rental empty, and then come after you for the rent remaining under the lease. Instead, the landlord must make efforts to find a replacement tenant.

If you are able to make it easier for the landlord to find a replacement, you might be able to negotiate an agreement that lets you off the hook for any further rent. For example, if you give enough notice and are able to suggest a replacement tenant—a person who's just as financially sound and has good references—there might be a seamless transition for the landlord.

Alternatively, if you're not able to find a replacement, you might need to sweeten the deal. For example, you could offer to pay the landlord a certain amount (such as a half months' rent) in exchange for allowing you to break the lease.

For example, if you want to leave three months before the end of your lease, you might offer to pay half a month's extra rent if the landlord will sign an agreement releasing you from further responsibility under your lease. Although technically the landlord might be able to hold you responsible for rent until they find a replacement tenant, many landlords would rather have some extra cash in hand and not have to worry about coming after you later for additional rent.

Put Any Agreements in Writing

If you're successful in getting your landlord's agreement to cancel your lease, get it in writing! Below is a sample agreement you can give to your landlord to sign. Edit it as needed (by adding, for example, the correct address, dates, payment amounts, and any other agreement) to cover your particular situation.

Be sure to attach a copy of your current, fully signed lease. Once both you and your landlord have signed, keep a copy for your records. You'll want to keep a copy until your state's statute of limitations (the length of time someone has to sue after an alleged wrong occurs) for your landlord to sue you has run out—in some states, this can be as long as six years.

Sample Agreement Regarding Cancellation of Lease

This agreement is entered into on [date] between [tenant name(s)] (Tenants) who lease the premises at [full address of your rental] (Premises), and [landlord's name] (Landlord).

1. Under the attached lease dated [effective date of most recent lease], Tenants agreed to pay Landlord monthly rent of $______ [use the monthly rent amount agreed upon in the attached lease]. Tenants have paid rent through the month of [month and year that you've already paid rent for].
2. The attached lease expires on [date that full lease term ends], but Tenants need to break the lease and move out of the Premises on [last date you plan to be in rental].
3. Landlord agrees to cancel the attached lease on [either the last date you plan to be in rental or whatever date you and Landlord agree to end your responsibility under the lease], releasing Tenants from further responsibility under the lease, including (but not limited to) their obligation to pay rent, in exchange for Tenants' payment of [use the exact amount you and landlord have agreed on] by [date by which you will pay the amount].
4. Tenants also agree to allow Landlord to [insert any other promises you've made. For example: "show the Premises to prospective tenants after giving Tenants two hours' notice, seven days a week. If Tenants cannot be reached after Landlord has made a good-faith effort to do so, Landlord may enter and show the apartment"].
5. If Tenants do not fulfill their promises as described in paragraphs 3 and 4 above, the attached lease, dated [effective date of attached lease], will remain in effect.
6. This agreement is the complete agreement regarding cancelling the attached lease. Any other promises made by Tenants or Landlord, oral or written, are replaced by this agreement.

Landlord signature:______________________________ Date:______________________

Tenant(s) signature(s):______________________________ Date:_______________________

What to Do If Your Landlord Won't Agree to Your Early Departure

If your landlord isn't willing to let you out of your lease early, keep a record of your attempts to negotiate the situation. If you've proposed a suitable replacement tenant but your landlord denied this person, it's especially important to keep records of this—if your landlord later sues you for additional rent, you can demonstrate to the court that your landlord had the opportunity to mitigate their damages but refused it.

When you leave, make sure your rental is in as good (or better) condition as it was when you moved in, excluding normal wear and tear. You don't want to give the landlord any reason to come after you for additional damages. Take photos and videos of the rental so you can prove its condition to a court if necessary.

Finally, make a video or take a time-stamped photo demonstrating the day you actually move out. You'll want to make sure that you move out on or before the date you noted in your notice to your landlord. Having proof of the date of your departure will ensure that the landlord can't claim that you stayed longer and therefore owe even more rent.