Legal Question in Real Estate Law in California
Consequences of Breaking a Lease
I'd like to know what the consequences are for breaking a lease in Calfornia. What sort of action(s) can the landlord take? By breaking the lease, will it adversely affect my credit rating?
Thank you so much for your consideration in this matter.
2 Answers from Attorneys
Re: Consequences of Breaking a Lease
Generally, in California, if you breach a lease, the landlord can sue you to recover the rent remaining on the lease. Of course the landlord also has the obligation to re-rent the unit, at which point, assuming a residential lease, his damages would cease. If the landlord obtains a judgment, and the judgment remains unpaid, it could adversely affect your credit.
You should review the documents you signed when you leased the premises to determine what the lease says about breaches. You may also want to visit a local attorney who practices real estate law and landlord tenant law.
Re: Consequences of Breaking a Lease
'Breaking a lease' is a colloquial term for breach of contract where the contract is a lease. The consequences are somewhat different than those of breach for contract in general, because a special body of law, both statutory and judge-made, has developed in recognition of the special needs of tenants (and landlords). Nevertheless, there are many similarities and most contract interpretation and remedies rules still apply.
A prominent difference is that a landlord's right to recover unearned rent as damages is limited to losses that would be sustained despite his reasonable efforts to mitigate by re-renting. In other words, a landlord can't just let the apartment remain vacant after a breach, knowing that he can sue the breaching tenant for every penny of his losses.
Nevertheless, the landlord can sue you for all rent lost while the apartment remains vacant, as well as for advertising costs, any damage you did, etc., minus credit for your security deposit and prepaid rent, if any.
Your credit can also be harmed if the matter gets reported to a credit agency, which is likely, and your future prospective landlords may be given unfavorable references on you by the landlord you walk out on.
There is an exception in the Soldiers' and Sailors' Relief Act for active-duty military personnel, who can be relieved of lease obligation upon proper notice to their landlords.