Published July 19, 2020. Updated October 10, 2024.
Breaking a lease can be a daunting decision, especially if you're unsure about the legal and financial implications. In Michigan, the laws surrounding lease agreements are designed to protect both tenants and landlords, so understanding your rights and responsibilities is key to avoiding unnecessary complications. Whether you need to break a lease due to a job relocation, financial hardship, or other reasons, this guide will help you navigate the process smoothly and legally.
Leases are legal contracts meant to provide financial security for both the tenant and landlord. Sometimes, though, either party may want out a little early. Leaving before a fixed-term lease expires, without paying the remainder of the rent under the lease is called breaking the lease.
Read Michigan's Landlord-Tenant Laws for more information. As a Detroit property management company, we are well informed on the rules and procedures involved in such a situation. The following is what you need to know about breaking a lease in Michigan.
Before you decide to break your lease, it’s essential to understand what a lease agreement is. In Michigan, a lease is a legally binding contract between a tenant and a landlord. It outlines the terms and conditions of renting a property, including the length of the lease, rent amount, and rules for occupying the property. Most leases are for a fixed term, often 12 months, but can vary depending on the agreement.
When you break a lease, you are essentially ending the agreement before the term is up, which could result in penalties unless there are legal grounds for doing so.
In Michigan, there are specific situations where you can legally break a lease without facing penalties. These include:
Military Duty: If you are called to active military duty, you can break your lease under the federal Service-members Civil Relief Act (SCRA). You must provide written notice to your landlord along with a copy of your military orders.
Unsafe Living Conditions: If your rental property is considered unsafe or uninhabitable, you may be able to break your lease without penalty. This is covered under Michigan’s warranty of habitability, which requires landlords to maintain a safe and livable environment. Examples include lack of heat, water, or major structural damage. You must notify your landlord and give them time to make repairs before proceeding.
Landlord Harassment or Privacy Violations: If your landlord repeatedly violates your privacy, enters your property without proper notice, or engages in harassment, you may have legal grounds to break the lease.
Domestic Violence: Tenants who are victims of domestic violence may also have the right to terminate their lease early. Michigan law allows for early termination if tenants can provide proof, such as a protective order or police report.
If you don’t have a legally valid reason to break your lease, there could be financial consequences. Here are the most common penalties:
Rent for the Remaining Lease Term: In many cases, you may be responsible for paying the rent for the remainder of the lease period until the landlord finds a new tenant. This is known as rent mitigation, where the landlord must make reasonable efforts to re-rent the unit to minimize losses.
Forfeiture of Security Deposit: Landlords in Michigan may also deduct from your security deposit to cover unpaid rent or damages if you break the lease.
Legal Action: In some cases, landlords may choose to pursue legal action to recover unpaid rent or other damages caused by breaking the lease.
If you need to break your lease in Michigan and don’t have a legally justified reason, follow these steps to minimize potential penalties:
Review Your Lease Agreement: First, thoroughly review your lease to understand any early termination clauses or penalties. Some leases may offer a buy-out option, where you pay a fee to exit the lease early.
Give Notice to Your Landlord: Provide written notice to your landlord as soon as possible. Even if your lease doesn’t specify, it’s common courtesy to give at least 30 days' notice. The earlier you communicate, the better your chances of negotiating a favorable outcome.
Negotiate with Your Landlord: You may be able to negotiate an early lease termination without severe penalties, especially if you can help find a replacement tenant. Some landlords are willing to be flexible if it means avoiding long vacancy periods.
Document Everything: Keep a written record of all communications with your landlord, especially when discussing lease termination terms, repairs, or tenant replacements.
If breaking your lease seems difficult or too costly, consider these alternatives:
Subletting: If your lease allows it, you may be able to sublet your rental to another tenant for the remainder of your lease. Make sure to get your landlord’s approval and create a written sublease agreement to protect both parties.
Lease Buyout: Some landlords offer a lease buyout option, allowing you to pay a fee to exit the lease early. This fee is often less than the total rent due for the remainder of the lease.
Assigning the Lease: If your landlord agrees, you may be able to transfer (or “assign”) your lease to a new tenant, who would take over your obligations under the lease.
You can still break the lease by paying all the rent due for the remaining lease term. Under Michigan law, you only need to pay the amount the landlord loses, in the event of breaking the lease.
No matter what your reason for leaving is, landlords must make reasonable efforts to re-rent the unit. If fortunate enough to get another tenant, your landlord must subtract the rent received from the amount you owe.
The law also permits the landlord to add legitimate expenses to your bill. For instance, the advertising costs accrued when the landlord is searching for a new tenant.
Breaking a lease in Michigan can feel overwhelming, but you don’t have to navigate the process alone. At Own It Detroit, we understand the challenges that both tenants and property owners face in managing lease agreements and rental properties. Whether you’re a property owner dealing with a tenant breaking a lease or a tenant looking for support in understanding your rights, we’re here to help.
For property owners, our professional property management services ensure that your investment is protected, even when unexpected lease terminations occur. We handle everything from finding replacement tenants to minimizing vacancy times and ensuring that your properties remain profitable. With our expertise, you can avoid the hassle and potential financial loss of broken leases.
If you're a tenant or property owner in need of assistance, reach out to Own It Detroit today. Our team of experts is dedicated to providing solutions that benefit both landlords and tenants, ensuring a smooth and stress-free process for everyone involved. Let us help you protect your property and manage lease challenges with ease.