Can Property Managers Break a Lease?
Anything can happen during the lease term, but the last thing tenants want to experience is their Property Manager breaking the lease before the expiration date. There can be various reasons Property Managers want to break a lease — either due to lease violations or personal reasons — but this often requires Property Managers to follow certain steps to avoid violating a tenant’s rights or landing in a legal situation.
What Property Managers and tenants need to know about breaking a lease early and what Property Managers must do to do this with minimal hiccups.
Breaking a Lease Early: What Property Managers and Tenants Should Know
Property Managers and tenants are legally bound to the rules and clauses outlined in the lease agreements once both parties have signed. For Property Managers to break a lease, they must have a valid reason according to local Property Manager-tenant laws or have a termination clause in the lease that allows them to break the lease under certain circumstances.
They are generally only allowed to break the lease by providing tenants with “proper notice” and with a locally-allowed reason. If there is no termination clause in the lease, but the Property Manager still wants to break it, both parties must agree. However, tenants are not required to agree to break the lease, so the original terms are still valid until the lease expiration date.
If Property Managers provide a valid reason to break the lease, tenants typically have 30 days to find their next home.
4 Reasons for Property Managers to Break a Lease
In most cases, local ordinances allow Property Managers to break the lease in the following instances:
- Breaking a Lease for Multiple Lease Violations
A lease violation happens when tenants go against the rules and clauses outlined in a lease agreement. Some Property Managers may break the lease or pursue eviction if tenants commit multiple lease violations, such as illegally using the property or missing rent for multiple months.
If you’re a Property Manager in a scenario like this, it’s generally best to first talk to your tenant to resolve the issue without breaking the lease or evicting them. You can also amend the lease to address the issue, protect your rental business, and implement boundaries with your tenant.
But if breaking a lease seems like the best option, check with local Property Manager-tenant laws to know what route is best for you.
- Breaking a Lease to Sell the Property
Owners are generally allowed to sell their property without a tenant’s permission.
In Montana the tenant follows the property not the ownership of the property. As long as a lease is in place the new owner must honor the terms of the existing lease.
- Breaking a Lease Before the Tenant Moves In
There may be times when the Property Manager may Terminate the lease prior to a tenant before they move in. The termination may be due to the tenant wanting to change the terms not agreed to in the initial lease.
In any case, Property Managers must move forward with the tenancy unless the tenant also agrees to break the lease through a written agreement. If the tenant doesn’t agree to break the lease, it may be best to consult a lawyer to determine your options.
- Breaking a Lease to Renovate the Property
Property Managers are responsible for providing a safe and habitable living space for tenants. They must also maintain the property and repair anything that violates health and safety standards.
If the property has been damaged due to fire or another major event and is no longer livable.
Some Property Managers offer to cover lodging costs for a set timeframe, so tenants have a place to stay during their home search.
How to Legally Terminate a Lease Early
Property Managers can modify the lease term with a lease amendment to terminate an existing lease early. You can change the expiration date to sooner or to explicitly state the breaking of the lease. Both parties will need to sign an amendment to be enforceable.