What to expect if you have a broken lease with an apartment

I have a broken lease!

The vast majority of apartments will not work for you if you owe money to another rental property or break a lease. The properties that will work with you have different qualification criteria. Almost without exception, the property will want to know that you have reset your rental history. Some of them will want additional deposits and it usually depends on how much you owe on the property you broke the lease on. Apartments can go back to the beginning of time by checking rental history. Even owning a property 10 years ago can easily get you denied.

I have a broken lease out of state!

Once a breached lease is reported to the credit reporting agency, it will show up no matter where you are. If you owe money on a property, most of them won’t work with you. In effect, a breached lease out of state is the same as a breached lease with a local apartment. Your options will remain the same… make payment arrangements or go to a property that works for you.

I don’t have a broken lease, but I owe money on a property!

Usually that means you owe a cleaning fee something like that. Again… apartments don’t work on you. But usually the amounts owed aren’t too much and you can arrange to pay them.

I have a broken lease. but my credit is good!

Many apartments, especially newer ones, use a point system like Saferent or Credit Retriever. If you score in the exception range and your background checks some of them will work for you. But most apartments will automatically deny you if you owe money to another property.

I have more than one broken lease!

Difficult… but not entirely impossible. They will charge you an additional deposit and may require a co-signer. Additional deposit can be as much as one month’s rent. Sometimes first and last months. Very few apartments will do this.

I have a broken lease and irregular credit!

There are a small number of apartments that will work for you, but you must have your rental history reset and it must be verifiable. Living with your mother, aunt, cousin, or uncle may not count as rental history in many rental properties. Just because you don’t currently have a lease doesn’t mean you don’t have verifiable rental history.

I don’t have a broken lease, but my roommate or spouse does.!

Most rental properties will not list your roommate as the occupant. Everyone over the age of 18 occupying the apartment must be on the lease and qualify to live there. It could easily be denied. There are still some properties that will work with an occupant situation, but they are getting harder to find. It’s ridiculous when people making between $50,000 and $100,000 a year can’t qualify for a $500 a month apartment… but it’s a fact.

I have an eviction!

This is a bigger problem than a broken lease. Even apartments that will function on a breached lease may not touch an eviction. The reason is that they had to take you to court. This is a significant expense for properties, not to mention a nuisance.

I’m on a lease right now and I want to break it!

Stop… take a deep breath. Are you sure that’s what you want to do? Breaking a lease with an apartment in is one of the leading causes of denials and severely limits the number of rental properties you will qualify for. It will stay on your credit forever, until you take care of it, and of course, it will be denied in most places you go.

What are payment arrangements?

Before your breached lease goes to collections, you have a window of opportunity to arrange to pay your lease in small, AFFORDABLE payments. The manager will give you a letter saying that he is making arrangements and many apartments will work with you. There are many, many properties that insist that you pay in full before working with you.

I have made payment arrangements. Why did they deny me?

Most rental properties want your broken lease to be paid in full before they will accept it. Fortunately, there are some properties that will work with payment arrangements. What this means is that you go back to the property you broke your lease on and tell them you want to pay off your broken lease. Arrangements can be $20, $30, $50 a month and maybe more. What you agree with the property manager. NEGOTIATE… Make your first payment and receive a letter stating that you have made the necessary arrangements to pay the breached lease. Then with that letter… you can go to the apartments that will work with you. It is important that you continue to make the payments or the property will be returned to your credit.

I co-signed with a friend and they skipped the rent!

You have a broken lease…sorry! You can dispute it on your credit or find your friend and ask them to make payment arrangements. But you are responsible for the point of view of the apartment.

How to legally break a lease.

If you are in the military and are being transferred or relocated… no problem! Otherwise, you will have to pay a re-rental fee. Usually 85% of a month’s rent. Sometimes you will also have to return concessions. (let’s say you got $250.00 off your first month’s rent) Many apartments will make you responsible for the rent until you rent again. That’s the scary part… make sure you clear that up with the manager. No property can collect 2 rents on the same unit at the same time. Talk to your apartment manager and make it clear that you understand their policies regarding rental rates.

I’m getting mail from a collection agency regarding my broken lease!

This means that it has been reported to the credit bureau and is now on your credit report. Your broken lease is official. You’ll need to pay it off, make payment arrangements, or find a rental property that works for you. When you’re here, you almost have to work with an apartment locator or real estate agent.

I broke a lease, but I had a very good reason too!

For all practical purposes, an apartment lease is ironclad… let me repeat that… ironclad. If you absolutely must break the lease on an apartment, talk to your manager or landlord first, explain your situation, and try to make payment arrangements with them. Most of them understand and will work with you. Some of them will lean back. Property managers can be understanding, but remember that they have heard everything. There are procedures that must be followed to the letter. That’s why most of them can’t accept partial payments (although many will… for a while). In practical terms, most people break a lease because they lose their job or get divorced. Sometimes a family member gets sick. Sometimes it’s an abusive situation. As sad as it is…none of these things will matter if you break the terms of your lease…sorry.

Someone got into my car and I drove off!

No one wants to live in fear, but an apartment lease is foolproof. That means you’ll end up with a broken lease. I’ve seen apartment managers let people out, but it’s usually one of those unfortunate things, from an apartment standpoint. Definitely tell the manager and call the police. What happens will be at the discretion of the manager. Be thorough and have documentation when you talk to him/her.

They said I didn’t give them a 30 day notice!

The apartments are very strict about it. You must give proper notice, and they must know that you have given proper notice. Write it down, date it, and make an extra copy for your records. DO NOT LEAVE IT ALONE IN THE BOX AT NIGHT. Despite the fact that you have met the time on your lease, you could still end up with a breached lease because you did not give proper notice. Worse yet… you could be denied at the next property you’re looking at. Most properties want you to give no later than 3 days notice. There are quite a few apartments that require you to give 60 days notice. Make sure you know exactly what the policy is. Ah, one more thing! Just because you’ve lived there five years, paid your rent on time, and been an ideal tenant, don’t think they can’t terminate your lease without proper notice.