Can I Get Out of My Apartment Lease to Buy a House?
While mortgage rates are falling and rent rising in cost, more and more folks want to get out of apartment lease to buy a house instead.
Most of the time, buying a house is not enough of an excuse to use to break your lease. However, nowadays, some of the landlords can be more accommodating than others. It will depend on a case by case basis and how your landlord’s early termination policy is set up. Also, keep in mind that there are rules that apply vary state to state. For example, breaking your lease in New York may differ from breaking your lease in California due to a home purchase.
Is There a Buy Out Option on my Lease?
If the landlord is not having much luck with getting tenants or has properties that are vacant, he or she may turn to be ‘tough nut to crack’, in terms of getting out of lease early. However, almost every landlord has some kind of ‘exit clause’ on the leasing agreement. Usually, you can buy a way out of your lease with a cash upfront payment or lease break fee of at least 2 months rent or worst case scenario with a 60 days notice + 2 months rent. Of course, it all depends on how much your monthly rent costs you, which can be quite expensive in the end.
Some tenants think that they can just get out of lease without any notice to a landlord or any consequences that may follow. Well, guess what, it’s a bad idea. Landlord can cause a lot of harm to a tenant who left the lease without notice or didn’t pay any penalty. For example, a tenant decides to apply for a mortgage and a lender contacts a landlord to simply verify the amount of rent that was paid and if it was paid on time. Landlord can easily give a bad reference to a lender and may even decide to report tenant’s unpaid balance to a credit bureau for breaking an apartment lease.
The best way to get out of apartment lease to buy a house legally is to assign your apartment lease to someone else. With a lease assignment, a new tenant would legally enter into a leasing agreement with your landlord and pay the rent directly to him. Your name should then no longer be on the lease. Should the new tenant ever fall behind on payments to a landlord, you’ll no longer be responsible.
Therefore, if you get into this situation where you need to get out of apartment lease to buy a house and you’re in dire need to do that, you can always hire someone from the outside to manage it effectively.
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