Living in New York City is unpredictable. Between professional and personal conflicts, there are numerous reasons why renters need to change their living situation before their lease ends. In NYC, renters are on the hook for their rent payment through the end of their lease duration. However, there are a couple of ways to get out of the lease agreement. A renter’s options highly depend on the type of lease and their relationship with their landlord. Renters with non-rent-stabilized leases in buildings with more than six residential units can break their lease or complete a lease transfer, also called a reassignment.
How to Break a Lease
Breaking the lease is the more commonly known way to get out of a lease agreement. When a renter breaks the lease, they are off the hook for the remaining rent payment, and they will not have to find someone to rent the unit after them. The landlord will agree to the lease break and find a new tenant, just as they would if the renter did not renew their lease.
A lease break can be convenient for renters, but it usually comes with consequences. Therefore, renters must carefully weigh their options before considering this plan. If they only have a few months remaining on the lease, it may be worth it to keep the agreement or consider a lease assignment.
What Happens if You Break a Lease
The consequences of breaking the lease early may vary depending on the landlord and the time remaining on the agreement. Generally, renters face a financial penalty. The penalty ranges, where some landlords have a flat fee, or others may charge a certain number of months of rent. In almost all cases, the tenant forfeits their security deposit. Additionally, if they have outstanding debts at the time of the lease break, it can negatively impact their credit score.
How to Get Out of a 1-Year Lease Early
There are ways to get out of a living situation without breaking the lease. Renters who do not plan to return to their apartment can also consider a transfer or reassignment. In this situation, the renter finds a new tenant and has them apply with the landlord. The landlord will approve or reject the application, just as they would in a standard application process. Renters will need to communicate with their landlord or management team to learn about the application process, and they will act as the liaison between the owners and new renters to submit the necessary materials.
A lease transfer does not come with the financial repercussions of a lease break. The primary tenant completes most of the legwork and helps the landlord find the new tenant. After management approves the new tenants, they will sign their own agreement for the remainder of the lease period, and the original tenant no longer owes money to the landlord. Additionally, the new tenants have the opportunity to renew for a full lease term at the end of the primary lease. Lease transfers are appealing for both renters and landlords since they avoid lease break fees and an apartment vacancy.
Submit a 30-Day Notice to Vacate
During a transfer, the original renter must also submit a 30-day notice to vacate. This is a one-page letter that states when the renter is moving out and includes instructions for where to send the security deposit. Renters can use vacate letter templates to learn how to format the vacancy letter.
Some landlords may request an additional notarized letter about how to handle the security deposit. The letter should clarify whether the original tenants will receive their deposit and have the new renters submit theirs, or if the money will remain in the account for the tenants to figure out independently.
What About Sublets?
Subletting or subleasing an apartment is different from breaking the lease or completing a transfer. In the case of the sublet, the primary tenant has the intention of residing in the unit when the agreement ends. For example, renters can sublet their unit for the summer if they’re traveling, then move back into the apartment.
Renters must still receive permission from the landlord to sublet or sublease their apartment. The original tenant remains on the document, and the temporary tenant pays rent directly to the tenant, who then pays it to the landlord. The original tenant remains on the hook for any damage done to the apartment, as they are the name on the agreement with management.
Finding Tenants for a Lease Assignment
Renters who proceed with a lease assignment may know someone who already wants to take over their agreement. This is the most straightforward way to proceed with the arrangement. However, some renters may need to find someone to take over their apartment. They can post the unit on rental listing platforms, including RentHop, to find a new tenant.
During the screening process, renters should ask any interested tenants if they meet the standard income and credit score requirements. The landlord can reject the application, and renters must find someone with a yearly income that is 40x the monthly rent and a credit score of at least 680. The primary renter must collect the application materials from the interested applicant and then submit them to the landlord for approval.
Conclusion
New York City moves quickly, and plenty of renters need apartments. Therefore, tenants have numerous ways to get out of their agreement if they need to pack up and move elsewhere. While most renters know about breaking the lease, this can have financial consequences. Renters who have the time to advertise their apartment can instead work with their landlord to find and approve a new tenant. New tenants must meet the same criteria that the original tenant met to secure the apartment. Upon the approval of a new applicant, the primary renter no longer owes rent to the landlord. Lease transfers are a straightforward way to get one tenant into an apartment to finish the remainder of the lease.
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