Legal Question in Landlord & Tenant Law in California

can't pay rent, want to get out of lease

My business is failing and I want to get out of my lease agreement.

what happens if I just stay and don't pay rent? If I leave am I responsible for the remaining 3 years?


Asked on 8/04/07, 2:21 pm

2 Answers from Attorneys

Robert F. Cohen Law Office of Robert F. Cohen

Re: can't pay rent, want to get out of lease

If you stay and don't pay rent, the landlord will give you a three-day notice to pay or quit. If you don't pay in 3 days, the landlord will file an unlawful detainer lawsuit against you, you will lose, and will be responsible for back rent, attorney's fees and damages (usually rent for any additional period until trial). Then the landlord could also seek damages for the remainder of the lease.

If you just upped and left, the landlord could still sue for the remainder of the lease. The landlord is required to use reasonable efforts to replace your business. You'd be liable for advertising efforts, listing, and the rent for the time it remains unrented, and perhaps the difference in the rent if the new tenant were to pay less rent.

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Answered on 8/04/07, 2:42 pm
Robert L. Bennett Law offices of Robert L. Bennett

Re: can't pay rent, want to get out of lease

Best solution is to negotiate with landlord. Second best is bankruptcy.

If you stay, and don't pay rent, you will be evicted, and it will damage your credit for years, especially if you ever try to rent. Also it will cost your landlord in evictions costs, possible legal costs, and not being able to rent the property to a paying tenant.

If you leave, you still owe the money, and landlord can sue, ruin your credit, and collect if you own property, real or personal.

Therefore, it is best if landlord permits you to leave, and cancels the lease, or works out alternate plans.

Even with business failing, you are better off hiring an attorney to represent you. The wrong moves here can cause you severe problems for years to come.

Good luck!

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Answered on 8/04/07, 2:46 pm


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