Breaking a lease is never ideal for tenants or landlords. However, there are instances when tenants may need to break their lease due to unforeseen circumstances. As a landlord in Toledo, it is essential to understand lease agreements and the valid reasons that can justify the termination of a lease. Knowing how to handle these situations in a lawful and professional manner is vital to the health of your rental business and your reputation as a landlord.
In this article we will explore lease agreements, protected reasons for lease breaking in Ohio, the legal recourse available to landlords, and tactful ways to respond to various situations.
Let’s dive in!
Disclaimer: The information provided in this blog does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available in this blog are for general informational purposes only.
Understanding Lease Agreements
Before delving into reasons why tenants may break their lease, it is important to have a clear understanding of lease agreements. A lease agreement is a legally binding contract between the landlord and the tenant. It outlines the responsibilities and rights of both parties during the lease term. Typically, lease agreements include details such as the duration of the lease, rental terms, and provisions for lease termination.
Landlords are responsible for providing tenants with a written lease agreement that clearly states the terms and conditions. It is essential to ensure that the lease agreement complies with local laws and regulations to avoid any legal complications in the future. Both parties should thoroughly review and understand the terms of the lease agreement before signing to prevent misunderstandings or conflicts later on.
The Importance of Having a Valid Reason to Break a Lease
When tenants sign a lease agreement, they commit to renting the property for a specified period. Breaking a lease before its expiration date can have serious consequences for both parties. In the state of Ohio, landlords are required to make a reasonable effort to re-rent a tenant’s unit as quickly as possible, no matter the reason that the tenant gives for breaking the lease. If the landlord is unable to do so, however, the tenant is responsible for covering unpaid rent.
There are also legally protected reasons for breaking a lease which absolve tenants from any obligation to the landlord. It is important to know what circumstances are covered by these laws and how you can, in some cases, prevent lease breaking from occurring for these reasons.
Valid Reasons to Break a Lease
Ohio state law outlines the following three scenarios in which tenants may break their lease without penalty:
Health and Safety Risks: If a tenant faces ongoing issues that the landlord fails to address like pests, mold, or other health hazards, they have the right to break the lease to protect their well-being. Avoid this situation by adhering to a consistent maintenance schedule. If you are very busy or unsure how best to go about maintenance planning, a professional property management company can be a great investment.
Invasion of Privacy: Tenants have the right to privacy in their own homes. As a landlord you are not entitled to enter properties without permission or install security cameras that face inside tenants’ homes. Be sure to read up on rules regarding privacy in rental properties and respect tenants’ boundaries in order to avoid this issue.
Military Deployment: Active military personnel may receive sudden deployment orders. In such cases, the Servicemembers Civil Relief Act (SCRA) entitles them to terminate their lease agreement without facing financial penalties.
There are, of course, plenty of other reasons why tenants may need to terminate their lease early. Job relocation, financial hardship, new babies, medical issues, and family emergencies are just a few examples of situations where tenants may have no choice but to move earlier than anticipated.
While you can theoretically sue for unpaid rent in the event that you are unable to rent the property following a good faith effort to find a new tenant, this can be a costly and time consuming process. It is always in your best interest to come to a mutually agreeable solution first. See if you and the tenant can work together to find a subletter or replacement tenant to take over the lease so that neither of you end up having to lose money. Cooperation and empathy are valuable tools when it comes to dealing with these situations.
If you are ever unsure of the best course of action, it is always a good idea to speak to an attorney.
Final Thoughts: Reasons to Break a Lease in Toledo
Although a lease agreement is meant to be binding for the agreed-upon term, unforeseen circumstances can arise. As a landlord in Toledo, it is important to be aware of the valid reasons tenants may have for breaking their lease. By understanding lease agreements, recognizing valid reasons for lease termination, and complying with relevant laws, you can navigate lease terminations in a fair and professional manner.
Looking for a Toledo property management company to help navigate lease termination, property maintenance, and more? Reach out to our local team to hear about our services and learn how we can benefit your rental business!
