Breaking a lease agreement can have serious consequences for tenants. A lease agreement is a legally binding contract between a landlord and a tenant, and it outlines the terms and conditions of the rental agreement. Breaking this agreement can result in financial penalties and damage to your credit score.
Here`s what happens when you break a lease agreement:
1. Loss of Security Deposit
A security deposit is a sum of money paid by a tenant at the start of a lease agreement to cover any damages or unpaid rent at the end of the lease. If a tenant breaks the lease agreement, the landlord may have the right to keep the security deposit as compensation for lost rent or damages.
2. Early Termination Fees
Many lease agreements include early termination fees, which are a penalty for breaking the lease before the end of the term. These fees can range from a few hundred dollars to several months` worth of rent, depending on the terms of the lease agreement.
3. Legal Action
If a tenant breaks a lease agreement, the landlord may take legal action to recover lost rent or damages. This can include going to court to get a judgment against the tenant, which can result in a court order to pay damages.
4. Damage to Credit Score
Breaking a lease agreement can also have an impact on your credit score. If the landlord takes legal action and obtains a judgment against you, it can show up on your credit report and negatively affect your credit score.
5. Difficulty in Finding a New Rental
Breaking a lease agreement can make it difficult to find a new rental. Landlords and property managers may be hesitant to rent to someone who has a history of breaking lease agreements or not paying rent on time.
In conclusion, breaking a lease agreement can have serious consequences for tenants, including loss of security deposit, early termination fees, legal action, damage to credit score, and difficulty in finding a new rental. It is important to carefully review and understand the terms of the lease agreement before signing it and to communicate with the landlord if any issues arise.
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