There are several reasons that tenants may choose to break a lease early, but only some of them are considered permissible under DC law. Provided your lease is legal, it’s enforceable by law, and your tenants should commit to living in the property and paying the agreed rent payment until the end of the lease.

Some DC landlords put a clause in their lease that allows tenants to break the agreement under certain circumstances, but your lease should be clear about these terms and any consequences, such as fees, that may result. Outside of valid reasons to break the rent agreement, it’s your discretion as a landlord to allow a lease termination.

What are your options as a DC landlord if a tenant breaks a lease? Here’s what you should know.

When Can a Tenant Legally Break the Lease?

In Washington, DC, a tenant may legally break the lease without ramifications from the landlord if:

• The tenant is an active military member and gets deployed. In this case, the renter may terminate the lease without consequences, valid 30 days after the start of the next rent period.
• The tenant has been a victim of sexual assault or domestic violence. In this case, the tenant can give the landlord a 14-day move-out notice, but it must be within 90 days of the incident being reported.
• The rental unit is not in accordance with DC code and is considered to be an unsafe dwelling, or, the rental unit is not legal in DC.
• The tenant has had their privacy violated or is being harassed by you.

Any reason outside of these is not considered a legal reason to break the lease and will depend upon your discretion whether or not to approve an early termination. What are your options once a tenant has notified you of their intent to move out early?

Take Action

Your first step upon being notified of a tenant’s intent to break the lease is to take action. Determine if they have a legal reason for breaking the lease. If so, there’s not much you can do except to verify their move-out date, collect any outstanding balances, and begin looking for a new tenant.

If your tenant doesn’t have a valid reason for breaking the lease early and you don’t approve the early termination, you can remind the tenant of their obligation to fulfill the terms of the lease agreement. If they still insist on breaking the lease, you can consider pursuing legal action.

Should you choose to permit an early lease termination even if the tenant doesn’t have a legal reason, you can collect any overdue rent, any termination fees as described in the lease, and begin looking for a new tenant.

Collect a Fee

As a DC landlord, you can only collect an early lease termination fee if such a fee is clearly described in your lease and the tenant does not have a valid reason for terminating the agreement. An example would be charging one or two months’ full rent for breaking the lease early, which can give you time to find a new renter.

However, while you may choose to charge a fee in your written lease, don’t use the tenant’s security deposit to cover any unpaid rent or fees. The security deposit should be solely reserved for repairing any damage done to the unit.

It’s essential to have the early termination fee outlined in your existing lease. Otherwise, it won’t be permissible for you to demand a fee if the tenant decides to move out when no such clause exists in the lease.

Be Wary About Subletting

If your tenant wishes to break the lease early and offers to find you a new tenant, be wary of consenting to this. Having a tenant sublet your unit means they can find a person to live in the unit with or without approval from you.

Should you decide to let your tenant find a replacement, you should conduct your usual screening process just as you would if you had found the new tenant yourself. Unless you personally know the tenant or the person they’re suggesting, it might be best to pass on this offer and find a new renter on your own.

Are You Covered If a Tenant Decides to Break a Lease Early?

The best way to protect yourself should a tenant decide to break the lease early without a valid reason is to have a clause in your lease that states the tenant must pay a fee. Are you protected if a tenant decides to back out of the lease early? Find out by consulting our professional property managers at FAS Management. We’ve been serving the DC area since 1946. Call us at (202) 337-5080 today!