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Frequently Asked Questions
- What is the most common early termination penalty?
- For residential leases, the most common penalty is 1-3 months of rent, regardless of how much time remains on the lease. Commercial leases vary more widely — some require payment of all remaining rent, while others have fixed penalty amounts. A few leases have no termination provision at all, which can expose you to the landlord's full damages.
- Is a landlord required to mitigate damages if I break my lease?
- In most states, landlords have a legal duty to mitigate damages by making reasonable efforts to re-rent the unit. If they find a new tenant, your liability is reduced by the rent collected from that tenant. However, the landlord can still charge you for the period the unit was vacant and any costs of finding a replacement tenant.
- Can I negotiate an early termination clause before signing?
- Absolutely — and you should. A well-negotiated early termination clause defines your maximum exposure upfront and eliminates uncertainty. Aim for a buyout option of 2-3 months' rent, a notice period of 60-90 days, and explicit language releasing you from further liability upon payment.