A lease is a legally binding contract. This means that if you vacate your rental property prior to your lease expiring, you’re in for some serious consequences. While you have some options if you want to leave, do note that you might be subject to the following consequences.
A Civil Lawsuit
As your lease is a legally binding agreement between you and your landlord, your landlord could sue you to get unpaid rent. Landlords usually win in these cases and renters must pay off the balance of the lease, says real estate attorneys in Denver. While illness, job loss, divorce, or separation could negatively affect finances, along with your ability to pay rent, courts won’t see these as legal excuses to terminate your lease earlier than expected.
Difficulty Looking for a New Place to Rent
A potential landlord will probably ask for references and check your credit history. If there are negative details in your report, like a breach of contract, late payments, or eviction, you’ll have a difficult time finding a new place to rent. Don’t even bother lying to a potential landlord since they will find out about sooner or later.
A Credit Judgment
This is an order to repay your debt. Following a hearing, the judge could issue a negative judgment against you. Although you could make a plan for repaying your debt or repay your debt immediately after the judgment, landlords see judgments as derogatory. Moreover, it would remain on your credit report for years. As your landlord would probably inform credit bureaus that you breached your contract, it’s best to avoid a judgment altogether.
Try as you might to avoid terminating your lease, sometimes, you don’t have a choice but to do it. However, as mentioned above, terminating your lease could result in negative consequences, which would then create a ripple effect that could affect your finances and your credit rating for many years to come. Consult a lawyer to determine the best option for your case.