Breaking a Lease in California

When a tenant signs a California lease agreement, they are contractually obligated to abide by all its terms. This includes paying rent for the entire life of the lease – whether or not they continue living there.

So, as a California landlord, what are you to do when your tenant breaks the lease early? Well, the action you take should be dependent on whether their reason for doing so is legally justified or not.

Under California law, if you have do not sufficient legal justification for breaking a lease, the tenant will not have committed a violation in breaking their lease in California. Examples of such reasons include:

• If they are serving in the military and have been deployed.
• If the unit is no longer habitable.
• The tenant becomes a victim of domestic violence.

In such cases, all the tenant will be required to do is provide you with proper notice before leaving. You may also require them to substantiate their claims by showing relevant proof.

However, the same cannot be said of reasons that are legally unjustified. For example, breaking a lease in California early because:

• The tenant is relocating to a new school or job.
• They are moving into their rental unit or home.
• They are upgrading or downgrading.

In such cases, the tenant would be in violation of the lease. Among other things, you could sue them for any liabilities that may arise from their actions.   

With that in mind, here’s everything you need to know about breaking a lease in California.

Rights & Responsibilities of Landlords When Signing a Lease Agreement

Under the tenancy laws in California, landlords have certain rights and obligations. For one, you have a right to evict a tenant from your rental property for violating the house, or apartment lease agreement.

Common lease term violations include refusing to pay rent or leaving unpaid rent or keeping up the rent obligation, excessive property damage, and failure to abide by the set rules and regulations before the lease ends.

Even then, the California landlord-tenant law requires you to follow the proper eviction procedure to remove the tenant from their rented premises.

You cannot try to remove the tenant from the premises using “self-help” methods. For example, changing the locks, removing the tenant’s belongings, or turning off the heat or electricity supply if they leave unpaid rent. Such actions are illegal and the tenant may even sue you for damages.

On your part, landlords are obligated to provide their California tenants with habitable rental premises. That is a property that meets all safety, health, and building codes. If you neglect this crucial responsibility, your tenant may have several options with legal justification. These include repairing the damage and deducting the amount from the rent, or even moving out without further responsibilities under the lease agreements.

Legal Justifications for a Tenant to Break a Lease in California

The lease obligates a tenant to keep their responsibilities, but can they break them? The following is a handful of scenarios that allow a tenant to break their lease without penalty: 

1. The lease has an early termination clause.

Is there an early termination of the lease clause? If so, a tenant can use it to end their rental lease without committing a violation to legally break a lease under landlord-tenant law. The only thing the tenant may need to do is pay the required fee to avoid further rent obligation, which, in most cases, is equal to 2 months’ rent. But it is set by the prospective landlords.

You may also require the tenant to provide you with adequate notice of the early lease termination. This can help give you sufficient time to re-rent the unit to a new tenant.

2. The tenant is an active service member and has received a change of station orders.

Service members are members of the Armed Forces that are serving the Army, Navy, Air Force, Coast Guard, and Marine Corps. Members of the state and federal service who are called into full-time active service also fall under this category. They include members of the Naval Militia, State Military Reserve, and National Guard.

Active service members are protected by the Servicemembers Civil Relief Act when deployed or relocated. The protection starts the moment they enter duty and terminates between thirty and ninety days after they are discharged.

For the tenant to be off the hook, they are required to provide landlords with the following items. One is to show the landlord notice that they entered active military duty before signing the fixed-term lease agreement. Two, to prove that they will be in service for the next ninety days. And three, show proof of the deployment to mitigate damages.

Once the tenant meets the requirements mentioned above, the fixed-term lease expires 30 days after the next rent period in which the new tenant would pay rent. You may also need to deal with the security deposit. 

3. The rental unit is no longer habitable.

California law requires landlords to have specific safety, health, and building codes that every landlord must abide by. If you don’t, your tenant may have a right to exercise several options including leaving the property and being considered constructively evicted. 

For one, they may simply choose to move out if a landlord fails to meet their duty. This will render the lease term invalid under California rental law, and the tenant will have no further obligations. Two, the tenant may choose to fix the issue themselves and deduct the appropriate amounts from the rent. Or three, the tenant may choose to report you to relevant local authorities.

To ensure your property meets all applicable codes, make sure to regularly inspect it for damage. You’ll also want to respond to tenant maintenance requests promptly otherwise your tenants may be considered constructively evicted.

4. You are violating their right to privacy.

This may also be enough justification for your California tenant to break the rental agreement early. As per California state law (Cal. Civ. Code § 1954), you’re required to provide your tenant with 24 hours’ notice prior to entering their unit.

If a landlord repeatedly violates this law to break a lease, then your tenant may sue you for landlord harassment.

5. You are discriminating against the tenant.

California anti-discrimination law prohibits discrimination on account of a person’s sex, religion, national origin, color, race, disability, and familial status. Other protected characteristics for prospective tenants include age, marital status, sexual orientation, source of income, gender identity and expression, and arbitrary characteristics.

So, ensure you’re especially careful when marketing your rental and screening a new tenant as any violations of the Fair Housing Act may result in the tenant ending the California lease early. This is also critical when finding a qualified replacement tenant.

6. The tenant is a victim of domestic violence.

Has your tenant been stalked, filed a temporary restraining order, or experienced any form of domestic violence? If so, that may be enough justification for them to break their lease early. They would only require to provide you proof and notice of their intended move to leave at any point in the entire lease term.

Contact us today if you’re a landlord looking for a knowledgeable team who can help you while your tenant is attempting to break the month-to-month lease. Halcyon Real Estate Services is there to support you in every area of property management.

Disclaimer: This blog isn’t a substitute for professional legal advice. If you need further help, please consider hiring expert legal services or hire an experienced property management company. Property management companies can help you navigate the legal landscape and much more.