Generally, residents sign a lease with the intention to stay for the entire term until the lease expires. However, life may come in the way, and they may end up breaking the lease early.
Breaking a lease in Texas, much like everywhere else, is a serious matter. After all, a lease is a legally binding document. A lease or rental agreement binds both you and your tenants for a certain duration of time within which its terms must be upheld.
So, what should you do when your tenants breaks the lease early? Generally, the blanket rule is to hold the tenanta liable for all rent remaining when they break the lease early. However, this may not always apply in all situations for liability.
What are the legal reasons to break a lease in Texas?
In some cases, a tenant may be legally justified to break a lease early. In such instances, all they have to do is provide you with a notice indicating their intention to leave. Such instances include:
1. There is an early termination clause.
An early termination clause provides specific terms that allow a tenant to terminate their lease early. In exchange, the tenant is required to part away with a small penalty fee. The fee is usually equivalent to the rent of two months.
So, if your lease contains a clause that allows tenants to leave before the lease contract expires, make sure the renter meets all terms of the lease before allowing them to leave. These include paying the fee and providing sufficient notice.
2. The tenant is beginning active service in the military.
Anyone with active military duty who have been deployed or have received a change of station orders are protected by Texas law. Specifically, the Servicemembers Civil Relief Act (SCRA). The Act protects “uniformed members” belonging to the:
- Armed services
- Activated National Guard
- Commissioned Corps of the Public Health Service
- Commissioned Corps of the National Oceanic and Atmospheric Administration
To terminate the Texas lease agreement, the tenant would need to do several things. First, they’d need to provide landlords with proof that they signed the lease before joining active duty.
Next, they’d need to show evidence of their intention to stay on active duty for at least another ninety days. Lastly, they’d need to provide you with a 30-days’ written notice, indicating their intention to vacate the rental property.
3. The unit is no longer habitable.
Every U.S. state has minimum safety, health and building codes that every rental unit must abide by. Texas law is no exception.
So, as a landlord, you have a responsibility to ensure your Texas rental unit is fit for occupation. What are some examples of uninhabitable conditions? They can include things like:
- Infestations of roaches, fleas or other pests.
- A malfunctioning air conditioning system in dangerously hot summer months.
- Unsafe or exposed wiring in need of repairs.
- Holes in the floor.
A court would probably rule that you’ve “constructively evicted” your tenant. In such a court case, the tenant would not have further obligations to the Texas lease agreement and may move out before the lease ends.
Some tenants, however, may decide to stay put and exercise their right to:
- Report the issue to a relevant authority.
- Sue you in small claims court.
Unlike many other jurisdictions, a Texas tenant cannot withhold payment if the landlord fails to maintain habitable conditions.
4. Harassment tactics are being used.
If you are using aggressive tactics to intimidate or put pressure on your tenant to leave, you may find yourself in legal hot water.
Under the Texas law, if a landlord fails to respect a tenant's privacy, this may be considered landlord harassment. Examples may include:
- Filing a fake eviction notice to try and force the tenant to leave.
- Filing falsified charges against a tenant. For example, falsely claiming that a tenant has violated a term of the lease in an attempt to evict them.
- Refusing to accept payments.
- Hiking the rent an unjustifiable amount.
- Intimidating the tenant, whether in writing, in person, or through the phone.
- Serving the tenant an improper notice for events like nonpayment of rent, entry, or evictions.
- Cutting off amenities that were promised in the Texas lease agreement.
- Failing to notify the tenant of an intended entry.
5. Tenant privacy has been violated.
Texas residents have a right to the quiet and peaceful enjoyment of their rented premises. Barging in unannounced violates this right.
To access rented premises, a landlord must first notify their tenants in advance. Some states define how much notice a landlord must serve their tenants. Texas, however, doesn’t specify the exact written notice landlords should give their renter, so include this in your lease.
What reasons for breaking a lease are legally unjustified?
No matter how honest they seem, some reasons are generally not enough justification to legally break a lease.
Such reasons include:
- Moving into your new home.
- Relocating to a new school or job.
- Moving in with a new romantic partner.
- Moving to get closer to friends and family.
- Relocating to upgrade or downgrade.
In such cases, residents have no legal protection against penalties for ending the lease early and will need to pay the rent owed.
So, as a landlord, you can require the tenant to pay the entire rent due under the residential leases. For example, if the lease was to end in three months, then you can require the tenant to pay rent for the entire three months remaining under the lease. And that is irrespective of whether they stay in the home or not.
Additionally, you may also charge them for marketing expenses, as well as the cost of qualifying a new tenant.
Landlord's Duty to Find a New Tenant in Texas
According to Texas law, landlords must “mitigate damages" and find a new tenant. Regardless of why the tenant breaks the lease, landlords cannot just sit back and hope for the best. After the early lease termination they have to take reasonable steps to re-rent the unit to a replacement tenant.
If you are successful in re-renting the unit, then the tenant will only be responsible for paying rent that was lost while the rental was vacant.
Do residents have a right to sublet their unit in Texas?
Unless otherwise stated, residents have a right to sublet their unit. So, if your lease doesn’t say anything of the contrary, ensure you have rules that protect your rental. For instance, requiring that prospective residents undergo the same screening criteria as other tenants.
There you have it--everything you need to know about a tenant breaking a lease. If you need further help, SGI Property Management Dallas is here for you. We manage over 500 properties in Phoenix, which means we have the staff and systems to support your rental management needs.
We also invite you to read our article on the Landlord-Tenant Laws in Texas for more information.
