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Q: Consequences of breaking and walking out on a residential lease? ( Answered 5 out of 5 stars,   2 Comments )
Question  
Subject: Consequences of breaking and walking out on a residential lease?
Category: Business and Money > Finance
Asked by: smitf7-ga
List Price: $10.00
Posted: 17 Apr 2003 06:41 PDT
Expires: 17 May 2003 06:41 PDT
Question ID: 191710
I have two months left on a two year lease (ends July 31).  I have
been with the landlord since 1997 and I need to break my lease as of
May 31 because of a move overseas.  The landlord holds on month
deposit and is being very inflexible, not allowing me to sublet, not
being accomodating in terms of showing the apartment etc.  What would
the landlord be able to do if I vacate at the end of May without
paying for June and July?

Request for Question Clarification by tar_heel_v-ga on 17 Apr 2003 06:49 PDT
Where do you live?

Clarification of Question by smitf7-ga on 17 Apr 2003 07:27 PDT
I live in Manhattan, New York.

Clarification of Question by smitf7-ga on 17 Apr 2003 08:32 PDT
For example, could I get out of my lease if it is a no pet building
and one of the tenants has a pet and I say that it is not good for my
health?  Or any othere reason such as disturbing neighbours or lack of
maitenance etc etc...
Answer  
Subject: Re: Consequences of breaking and walking out on a residential lease?
Answered By: missy-ga on 17 Apr 2003 10:38 PDT
Rated:5 out of 5 stars
 
Good morning!

The first thing you need to do is read over your lease agreement
carefully.  Most lease agreements have a clause explaining in detail
what is required to break your lease (breach your contract).  A lease
agreement is a *contract*, legally binding on both sides, and both
sides are obligated to honor that contract.  Some termination clauses
are more draconian than others - my own states that I must give the
landlord 30 days notice of my intent to break the lease, and I'm
obligated to continue to pay the rent for the balance of the lease, or
until the apartment is re-rented, whichever comes first.

Others are not quite so harsh, requiring only one or two months rent
beyond the day you vacate.

Your landlord is under no obligation to allow you to assign your lease
or sublet your apartment, as long as his refusal is "reasonable" (for
instance, the proposed tenant has a poor credit history or is
unemployed):

" First, ask your landlord if s/he will let you out of the lease.
Landlords are sometimes pleased to obtain vacancies - especially if it
will lead to a rent increase.

If your landlord refuses to let you out, you can ask the landlord if
you can "assign" the lease. This means that you would have to find a
new tenant. The landlord can refuse to do so, but if his refusal is
unreasonable he must release you from the lease in thirty days upon
your request.

For more information see the "Subletting and Assigning Leases" section
of the NY State Attorney General's Tenant's Rights Guide.

Generally speaking, if you break your lease the landlord can claim
part or all of your security deposit for "unpaid rent." He could also
go to court to enforce the terms of the lease (i.e., ask you to pay
additional rent until a new tenant is found). Under current rulings,
landlords have no duty to promptly re-rent the apartment. "

What are my options if I want to get out of my lease early?
http://www.housingnyc.com/resources/faq/leases.html#options

If your landlord hasn't made necessary repairs to your apartment which
affect the habitability of your apartment, you may be entitled to
withhold rent under New York's Warranty of Habitability:

" Tenants are entitled to a livable, safe and sanitary apartment.
Lease provisions inconsistent with this right are illegal. Failure to
provide heat or hot water on a regular basis, or to rid an apartment
of insect infestation are examples of a violation of this warranty.
Public areas of the building are also covered by the warranty of
habitability."

[...]

" If a landlord breaches the warranty, the tenant may sue for a rent
reduction. The tenant may also withhold rent, but in response, the
landlord may sue the tenant for nonpayment of rent. In such a case,
the tenant may countersue for breach of the warranty."

[...]

" Landlords of buildings with three or more apartments must keep the
apartments and the buildings' public areas in "good repair" and clean
and free of vermin, garbage or other offensive material. Landlords are
required to maintain electrical, plumbing, sanitary, heating,
ventilating systems and appliances landlords install, such as
refrigerators and stoves in good and safe working order. Tenants
should bring complaints to the attention of their local housing
officials. (Multiple Dwelling Law (MDL) ß78 and ß80; Multiple
Residence Law (MRL) ß174. The MDL applies to cities with a population
of 325,000 or more and the MRL applies to cities with less than
325,000 and to all towns and villages.)"

TENANT'S RIGHTS GUIDE - OFFICE OF THE NEW YORK STATE ATTORNEY GENERAL
http://www.housingnyc.com/resources/attygenguide.html#13


" Your rights are defined by your lease and by state and local law. If
the lease specifies the services or improvements and the landlord has
not performed, s/he has breached a legitimate contract and you may
demand damages or performance.

If the improvements simply concern amenities which do not effect the
habitability of the apartment, you could sue the landlord for damages
or to force him or her to abide by the terms of the lease. The court
you choose will depend upon the amount of damages claimed and the type
of relief sought. If the improvements concern habitability, you may
seek an inspection to determine if there are housing code violations
and you could sue for repairs in the "HP Part" of the Housing Court.
If the improvements involve a service which has previously been
supplied to the tenants of the building, you may want to consider
filing a reduction of service complaint with the New York State
Division of Housing and Community Renewal (718) 739-6400.

We suggest you obtain a consultation with a private attorney. The
following tenant groups may advise you on where to look:

    * Met Council on Housing (212) 979-0611
    * Tenants and Neighbors (212) 608-4320"

My landlord never followed through on promised improvements. Where do
I turn for breach of lease?
http://www.housingnyc.com/resources/faq/leases.html#breach

Please note that you would need to have an accurate record of asking
for necessary repairs to be made - for example, copies of letters sent
to the landlord, along with return receipts, notations of telephone
conversations, with dates and summaries of what was discussed.  This
law is to protect residents with serious landlord problems, and makes
no provisions for people simply seeking to break their legally binding
lease agreements.

Claiming the presence of a pet in a building as a health hazard is
likewise complicated.  You would need a letter from your doctor
specifically describing what effect someone else's pet is having on
your health, and you'd need to sue in Tenant Court.

You are *both* legally obligated to abide by the terms of your lease
agreement.  If you break your contract improperly, you open yourself
up to the possibility of costs greater than just the two month's rent
remaining on your contract.  Your landlord can file suit, seeking not
only the remaining rent owed, but his attorney's fees and court costs
as well.

A judgement against you may result in the filing of a lien until the
judgement is paid.  A lien, unlike a "normal" collection action (which
will remain on your credit report for 7 years), is renewable and will
remain on your credit report until you pay the judgement in full. 
This will adversely affect your ability to obtain credit, a car loan,
a mortgage loan...Additionally, the court can seize your future
Federal income tax refunds until the judgement is satisfied.

For more information on Tenant's Rights in New York, you may want to
look at the following resources:

Tenant's Rights Guide
http://www.oag.state.ny.us/realestate/tenants_rights_guide.html

Tenant.net
http://tenant.net/

Your Rights to Sublet, Share, and Assign Apartments
http://tenant.net/Tengroup/Metcounc/Mar96/sublet.html

Rights of Residential Owners and Tenants - New York State Bar
Association
http://www.nysba.org/Content/NavigationMenu/Public_Resources/Programs_and_Resources/Educational_Pamphlets/tenantrights.pdf

Good luck!

--Missy

Search terms:  [ "tenant's rights" "New York" ]
smitf7-ga rated this answer:5 out of 5 stars and gave an additional tip of: $5.00
Thank you.  This was very helpful and quick.

Comments  
Subject: Re: Consequences of breaking and walking out on a residential lease?
From: jonmm-ga on 17 Apr 2003 06:58 PDT
 
Unfortunately, as you probably already know, you are on the hook for
the last 2 months. The landlord could file suit for the rent and/or
report the debt to credit reporting agencies. However, in the real
world, it can be time consuming and costly for the landlord to do
this, so they might not bother if they are able to find someone to
replace you quickly.
Subject: Re: Consequences of breaking and walking out on a residential lease?
From: journalist-ga on 17 Apr 2003 07:41 PDT
 
You might want to examine the information/forms for sale ($15.96) at
http://www.nolo.com/lawstore/products/product.cfm/ObjectID/D66F01D8-750C-4103-A553F46A4F85CD0E
that was compiled by an attorney.  The text states in part "This
eFormKit discusses the five legal ways to walk away from a residential
lease without running afoul of the landlord or the law."

A link from the above site is
http://www.nolo.com/lawstore/products/product.cfm/ObjectID/567125E8-997E-4F70-82336ED531EDAE25
and leads to another attorney-prepared kit "New York Tenants' Rights"
costing $21.99.  The text there states in part

"You'll find plain-English solutions to problems involving:

signing a lease or rental agreement 
repairs and services 
discrimination, harassment or retaliation 
privacy invasions 
problem roommates 
noisy neighbors 
subletting your place  
mold and lead paint hazards 
ending your lease"

Also, if your move is anyway related to the armed forces, you may be
able to break the lease with no penalty.  On a separate note, I lived
for many years on 2nd Street between 1st and A - wave at the
neighborhood for me the next time you go by there.  :)

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