Breaking a Lease in Texas | Tenant & Property Manager Rights

Tenants breaking residential leases early can easily become a headache for property managers. While Texas law allows tenants to move out before a lease ends under certain conditions, there are other cases where the landlord may have the upper hand.

One of the most critical aspects of Texas' landlord-tenant law is how breaking a lease works. On this page, we'll take a look at all the conditions that need to be met in order for a tenant to break a lease in Texas so that you're better prepared for the future.

Required Notice

First, you must evaluate the kind of lease you currently have. Texas law doesn't require tenants with fixed-end date leases to provide notice, as the lease will expire on the date that was set.

However, the process changes a bit when it comes to periodic leases. Texas law requires tenants to provide different amounts of notice depending on the type of lease they have:

• Weekly Lease - Seven days.
• Monthly Lease - 30 days.
• Quarterly Lease - N/A.
• Yearly Lease - N/A.

While there are no statutes for breaking a quarterly or yearly lease, it's considered appropriate for tenants to provide at least 30 days of notice.

Texas tenants who fail to provide notice will likely have to pay a penalty or face legal consequences.

Breaking a Lease Agreement

Yes. Texas law allows tenants to break a lease early without penalties, as long as certain conditions are met:

Early Termination Clause

This is the most common scenario for landlords and tenants in Texas. If you include an "Early Termination Clause" in your lease agreement, then you will be able to specify what happens if the tenant decides to break the lease early.

Typically, early termination clauses require tenants to pay a penalty if they break the lease. Moreover, this clause specifies how much notice the landlord needs to get before the tenant moves out.

You must make sure that all the rules and guidelines for the early termination clause are explained thoroughly so that the tenant doesn't try to break the lease without paying penalties.

Now, there's a second outcome here, which is called "Mutual Termination." If a tenant asks to break the lease early, and you agree, they may be able to move out of the rental unit without paying penalties.

Keep in mind that no one is forced to agree to this type of termination. If both parties agree to do this, then you should write down the terms and get all the necessary signatures.

Active Military Duty

Tenants may be able to move out of the rental unit under an "Active Military Duty" clause. This is thanks to the Servicemembers Civil Relief Act, which protects active members who are relocated for any reason such as:

• Change of Station
• Deployment

The SCRA protects active service members from the day they enter active duty and up to 30-90 days after they get discharged.

Still, tenants have to send the landlord written notice before moving out of the rental unit, as well as a copy of the deployment or change of station orders. On the other hand, if they can't prove they signed the lease before entering active duty or that they will remain on duty for at least 90 days, they may not be able to break the lease early.

It's important to note that tenants can only end the lease 30 days after the next rent period begins and not a day before.

Unsafe Living Conditions in the Unit

Landlords are required by law to keep their property in good condition while they get a new tenant. Moreover, the new tenant has the legal right to request repairs in a timely manner.

If the landlord fails to provide these repairs in time, the tenant may be able to move out of the property without paying the total remaining rent.

According to Texas law, it's the landlord's duty to provide their new tenant with the following:

• Security
• Smoke Alarms
• Running Water
• Functional Plumbing
• and more

If the landlord repeatedly violates their duty to keep their property in good shape, the tenant can send a written notice stating they will break the lease early unless they fix the problem in time.

Now, keep in mind this doesn't apply to any minor problem the property may have. In essence, tenants can only break the lease if the problem affects the person's physical health or safety.

Moreover, to be eligible for this condition, the tenant must have been paying rent on time. They must also provide the necessary notice to their landlord.

Landlord Harassment or Privacy Violations

If the landlord violates the tenant's privacy in any way, the tenant may be able to break the lease and even seek legal protection.

The two most common scenarios include:

• Entering the Property - Even though landlords aren't required by law to provide notice within a specified period, they still have to do it within a reasonable timeframe. Removing windows/doors, turning off the utilities, and other similar actions are considered illegal for the landlord to do.
• Changing Locks - Landlords can't change the locks of their property in Texas unless the tenant didn't pay rent or did something illegal that attempted to harm the landlord or the property.

Domestic Violence, Stalking, or Sexual/Elder Abuse

Texas protects tenants who suffer from any kind of domestic violence, assault, stalking, or other similar cases. As long as they can show the landlord proof they're victims of any of these cases, they may be able to break the lease early without paying rent penalties.

First, the tenant must provide the landlord with at least 30 days of notice and a copy of any documentation that supports the stalking, abuse, or assault. This documentation includes:

• Documentation or testimony from a qualified person or licensed healthcare provider
• Temporary Injunction
• Protective Order
• Emergency Protection Order
• Temporary "Ex Parte" Order

Tenant's Death

If the tenant was the only occupant of the unit, and they die before the lease expires, someone representing the deceased's estate may be able to terminate the agreement without penalties.

Alternatives

Here's a list of other reasons that tenants could use as an argument to break the lease early, although they often need to be approved by a court:

• Unenforceable Contracts
• Failure to Provide Mandatory Disclosures
• Qualified Disabilities
• Senior Citizen's Health Issues

Furthermore, if the landlord repeatedly violates the terms of the lease, the tenant will have the legal right to break the agreement.

Unjustifiable Reasons

There are some unjustified reasons tenants could use to try to move out of the property before the lease expires, and even though they seem valid, they're often not enough justification.

In these cases, the tenant will have to pay the rent they owe to the landlord as a penalty.

Some of those unjustifiable reasons include:

• Relocating somewhere else as an upgrade or downgrade.
• Moving near a close friend or family member.
• Relocating to a new job or school.
• Buying a new home.
• Moving in with a new partner.

How Should Tenants Deliver the Lease Notice Legally?

Texas law allows tenants to deliver lease notices in different ways, including:

• Handing the notice in person.
• Sending the notice through certified mail, registered mail, or regular mail.
• Posting the notice inside or outside the front door if there's no mailbox.
• Leaving the notice at the front gate of the property if there's anything preventing them from entering the property legally.

You can include a clause in the lease agreement that states how you would like to receive the notice letter in case of an early termination.

Consequences

There are several consequences for tenants who try to break a lease without a valid reason, including:

• Penalty Fees
• Poor Credit Score
• Lawsuits
• Bad Reputation with Future Landlords

Can Tenants Avoid Penalties for an Early Lease Termination?

Technically, they can, as long as they comply with any of the legal reasons stated above.

Generally speaking, here's what a tenant should do to avoid paying penalties when they break a lease early:

• Offering the landlord help to re-rent the property.
• Providing an appropriate amount of notice.
• Asking for permission to sublet the property.

Enforcing Penalties

Do your best to be as clear as possible with your lease agreement clauses. If you're including an early termination clause, make sure you're not missing any important details that could lead to a misunderstanding. This clause will be the key to ensuring you're protected in this scenario.

Moreover, you should be clear when explaining the consequences tenants may face if they try to break the lease without a valid reason.

You can ask your tenant to pay penalty fees to cover the following expenses:

• Any remainder of rent owed for the rest of the lease.
• Re-advertising or marketing expenses to find prospective tenants.
• Any screening expenses to find a new tenant.

It's important to note that Texas doesn't allow landlords to impose any penalty they want, as the tenant's only liability is the expenses that the landlord will have to cover.

According to the Texas Apartment Association, you're recommended not to ask for more than 85% of a month's rent to cover these expenses, unless you're suing a delinquent tenant for past rent.

Keep in mind that you may be able to take your case to a small claims court if the tenant doesn't comply with the terms in the lease agreement. If this happens, make sure to seek legal counsel, gather as much evidence as possible, and let the tenant know about what you're planning to do if they don't follow the rules.

Subletting The Property

Yes, tenants are allowed to sublet the property unless the lease states otherwise. If you're going to allow tenants to sublet, then make sure you impose appropriate conditions to protect yourself.

Moreover, you must be able to screen the replacement tenant, as you're not required to lower your renting standards for the tenant.

Finding a New Tenant

The Texas Property Code (Sec. 91.006) states that the landlord has a duty to "mitigate damages" if the tenant leaves before the lease expires.

This means that the landlord must make a reasonable effort to find a new tenant and not charge the tenant for the remainder of the rent.

The tenant will only be asked to cover rent for the amount of time the property was vacant.

Final Words

Overall, the key to preventing any problems with your lease agreements is to be as clear as possible with your conditions, especially the ones regarding breaking the lease early.

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Webinar

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