LEASE TERMINATION
You must read your lease carefully because different leases set out different methods of termination. If you don’t follow the correct procedure, you may find yourself stuck with the unit for a longer time than you wanted and/or with extra expenses. As a tenant, you have the power to terminate your lease early. However, this termination may be considered breaking the contract between you and your landlord. The landlord may have claims against you for unpaid rent until the lease expires or until the landlord re-rents the unit, whichever comes first. The landlord cannot hold you responsible for rent beyond your lease term unless you do not give proper notice of termination, and, even then, the landlord cannot charge you rent indefinitely. Many landlords will tell you that you cannot move out of your rental unit before the end of the lease. This is not the case. You can move out and end the lease early, but you do risk being sued by the landlord. The landlord’s claims against you can rightfully include requests for unpaid rent for the unit from the time you stopped paying rent until the end of the lease or until the landlord re-rents it, damage you caused to the unit, and any actual re-rental costs the landlord incurs. In addition to filing a lawsuit, the landlord can report your unpaid rent to a credit bureau or have a debt collection agency try to collect the rent from you. When you leave a rental unit early, whether you are responsible for unpaid rent depends on your reasons for leaving. For serious reasons for which the landlord is responsible, such as the landlord not repairing major problems with the unit after you properly notified him/her in writing of the problems and waited 30 days as required by Ohio law, you may not be liable for unpaid rent. If you are having problems that are severe enough to terminate your lease, you should seek legal advice. Oftentimes there are other remedies available, both before and in addition to terminating your lease. See the “Getting Repairs” and “Rent Escrow” informational packets. If you don’t have a valid reason to terminate the lease (for example, you can no longer afford the rent payments, you have found a place you like better, you no longer get along with your roommate, or you have to move out of town), you will be responsible for any unpaid rent until the end of your lease term. However, Ohio law requires landlords to reduce their damages by making a reasonable attempt to re-rent the apartment as soon as possible. If the landlord is able to re-rent the unit, you may only be held responsible for rent while the apartment remained empty, any re-rental costs, and charges for any damage you did to the unit. It is generally best to let your landlord know as early as possible that you will be terminating the lease so that your landlord will have plenty of time to start looking for a new tenant. Regardless of how your lease ends, you may still have the right to get your security deposit back, either 30 days after the lease expires or 30 days after the landlord re-rents the unit. Whether or not you have a right to get your security deposit back depends on the condition in which you left the unit and whether you have any outstanding charges owed to the landlord. If you terminated the lease wrongfully and you owe rent to the landlord, your landlord can use your security deposit to cover any rent owed. If you think you are entitled to the return of any portion of your security deposit, give your landlord a forwarding address in writing. See the “Security Deposits” informational packet for additional information. Many leases have provisions automatically forfeiting a certain amount of your security deposit if you break your lease. These provisions are generally not enforceable. The landlord can recover from you any actual re-rental costs, but the landlord probably doesn’t know these ahead of time. The landlord cannot simply penalize you financially for breaking the lease. If you are terminating the lease without a valid reason, you may be able to sublease the apartment to reduce your liability to the landlord. This means that you will find another tenant to take your place and pay rent to the landlord. Remember that you are still liable if the subtenant fails to pay rent or damages the apartment. Make sure that you get permission from your landlord before finding a subtenant. If you do not want to sublease the apartment, you can terminate the lease and move out. At that point, it becomes the landlord’s duty to mitigate damages by trying to find another tenant to take your place.
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If you are terminating the lease without a valid reason, you can also reach a settlement, or “buyout,” agreement with your landlord. This means that you both take a gamble. You agree to forfeit your security deposit and/or pay a few months’ rent in return for being let out of the lease agreement. The landlord agrees to accept less than the full amount of rent owed. Any “buyout” agreement should be put in writing and signed by both parties. But be careful—some landlords call agreements “buyouts” when really you are just agreeing to forfeit your security deposit and/or pay rent or a fee, while you are still liable for any unpaid rent due under the lease. Make sure that your landlord gives you a statement in writing that in return for your payment, that the lease will terminate and you will not owe any additional rent. Terminating Annual Leases READ YOUR LEASE! Even though your lease may have a set term (such as from September 15th to August 31st), many state in the fine print that you still must give 30, 45, or even 60 days written notice of termination. If you do not give the notice required in your lease, you may be liable for additional rent. Some leases state that if you do not give the required written notice of termination, that you will be responsible for a whole year of additional rent. These provisions may be enforceable. Because leases differ so dramatically, it is important to understand the termination procedures in your agreement. Terminating Month-to-Month Leases or Oral Agreements In a month-to-month lease, either you or the landlord can terminate the lease with 30 days notice. It is best for you to put this notice of termination in writing. This means that you must give the landlord notice a full 30 days before the next date rent is due. The most effective time to give notice of termination in a month-to-month lease is the day before your rent is due. If you give notice of termination on February 28th and pay your rent on March 1st, you will be able to leave by April 1st. Note that the landlord has the same termination power, and you may be left with only 30 days to find a new place to live. If you properly terminate a month-to-month tenancy, you are entitled to the return of your security deposit within 30 days, absent any unpaid fees or charges for damage beyond reasonable wear and tear. Terminating Leases for Failure to Repair or Breach of the Lease Agreement If your landlord has failed to fulfill his/her obligations under the Ohio Landlord Tenant Law or has breached your lease agreement, you may be entitled to terminate your lease agreement. Generally the problem needs to be significant in order to terminate the lease. If your landlord has failed to make repairs that materially affect health and safety, you need to first give the landlord written notice of the problem. The landlord then has a reasonable amount of time, up to 30 days, to complete the repairs. If the landlord has not completed the repairs at the end of that time, you may be entitled to terminate your lease. See the “Getting Repairs” informational packet for additional information.
THIS INFORMATIONAL PACKET ONLY REFERS TO OHIO LAW AND DOES NOT CONSTITUTE LEGAL ADVICE. IF YOU NEED LEGAL ADVICE, YOU MUST CONTACT AN ATTORNEY. THE LAW MAY HAVE CHANGED SINCE THE DATE OF THIS PUBLICATION. 12/07
12/07 • The Ohio State University Student Housing Legal Clinic
Termination of Lease Due to Failure to Repair
Date: Landlord’s Name:
_______________________________________ _______________________________________
Landlord’s Address: _______________________________________ City/State/Zip Code: _______________________________________
Dear ____________________________ (landlord):
Section 5321.04(A)(2) of the Ohio Revised Code (O.R.C.) requires landlords to make all repairs and do whatever is reasonably necessary to put and keep the premises in a fit and habitable condition. You have violated this requirement by failing to maintain this unit in a safe, decent, and sanitary condition. Furthermore, I provided written notification listing breaches of your duty on ______________________ (date of letter). A reasonable amount of time or thirty (30) days have lapsed and the conditions mentioned earlier still remain uncorrected. Ohio law authorizes a tenant to terminate a lease or rental agreement when the landlord receives written notice of any breach of the landlord’s obligation under the Ohio Landlord Tenant Act, local health and safety codes, and/or the lease agreement and fails to correct it within a reasonable amount of time up to thirty (30) days. Therefore, since you have breached your responsibilities, I am terminating my rental agreement for the premises located at ________________________________ (rental address) and will be moving out of the premises on ___________ (date of move). Furthermore, I request that the security deposit in the amount of ____________ be returned to me within thirty (30) days of the lease termination as required by O.R.C. Section 5321.16. Thank you for your attention and cooperation in this matter. Cordially, All Tenant Names and Signatures ______________________________________ ______________________________________ ______________________________________ Current Address _______________________________________________________ Forwarding Address _____________________________________________________ Phone Number _________________________________________________________ cc: copy retained for my records
Notice to Landlord of Lease Termination by Tenant (Termination of month-to-month tenancy / Termination notice required by the terms of the lease agreement)
Date: Landlord’s Name:
_______________________________________ _______________________________________
Landlord’s Address: _______________________________________ City/State/Zip Code: _______________________________________
Dear ____________________________ (landlord): This letter is to inform you that I will be terminating my rental agreement for the premises located at (rental address) effective (date). I am providing this termination notice because (end of lease term, notice required by lease, termination of month-to-month tenancy). Ohio law grants landlords the right to deduct from the security deposit for damages beyond reasonable wear and tear. Therefore, I would like to inspect the premises in your presence in order to document the condition of the property. Please contact me immediately in order to schedule a convenient inspection time. Furthermore, I request that the security deposit in the amount of ____________ be returned to me within thirty (30) days of re-renting or within thirty (30) days expiration of the lease agreement, whichever comes first. I apologize for any inconvenience and thank you in advance for your attention this matter. Cordially, All Tenant Names and Signatures ______________________________________ ______________________________________ ______________________________________ Current Address _______________________________________________________ Forwarding Address _____________________________________________________ Phone Number _________________________________________________________
cc: copy retained for my records
Notice to Landlord of Lease Termination by Tenant
Date: Landlord’s Name:
_______________________________________ _______________________________________
Landlord’s Address: _______________________________________ City/State/Zip Code: _______________________________________
Dear ____________________________ (landlord): This letter is to inform you that I will be terminating my rental agreement for the premises located at (rental address) effective (date). I am providing this termination notice because (reason for vacating the premises, such as moving out of town due to a job, etc.) Ohio law requires a landlord to mitigate damages by re-renting the premises as soon as possible. Ohio law grants landlords the right to deduct from the security deposit for damages beyond reasonable wear and tear. Therefore, I would like to inspect the premises in your presence in order to document the condition of the property. Please contact me immediately in order to schedule a convenient inspection time. Furthermore, I request that the security deposit in the amount of ____________ be returned to me within thirty (30) days of re-renting or within thirty (30) days expiration of the lease agreement, whichever comes first. I apologize for any inconvenience and thank you in advance for your attention this matter. Cordially, All Tenant Names and Signatures ______________________________________ ______________________________________ ______________________________________ Current Address _______________________________________________________ Forwarding Address _____________________________________________________ Phone Number _________________________________________________________
cc: copy retained for my records