Early Termination Clause

· 2 min read
An early termination clause is the section of your lease that spells out exactly how to leave before the lease ends and what it’ll cost…

An early termination clause is the section of your lease that spells out exactly how to leave before the lease ends and what it’ll cost you — and if your lease doesn’t have one, breaking it gets a lot more complicated and expensive.

What a Good Clause Looks Like

A well-written early termination clause states the required notice period (typically 30-60 days), the penalty amount (one to two months’ rent or a flat fee), any conditions (like being current on rent with no lease violations), and confirmation that paying the fee releases you from all future obligations. That last part is critical — without it, you might pay the fee and still owe rent until the unit is re-rented.

Negotiating One Into Your Lease

If your lease doesn’t have an early termination clause, ask for one before signing. Most landlords will add one for a reasonable penalty, especially if you explain you might relocate for work or are considering buying a home during the lease term. A $2,000 early termination fee written into the lease is much better than an undefined liability of $12,000+ for the remaining term.

When the Clause Isn’t Enough

Some early termination clauses have restrictions that make them nearly useless — only exercisable after month 8, requires 90 days notice, penalty of 3 months’ rent plus forfeiture of the security deposit. Read the clause carefully. A “generous” early termination option with a $5,000 penalty on a $1,500/month apartment isn’t generous at all. The tenant guide covers how to evaluate these clauses and what to negotiate before you sign.