A broken lease occurs when a renter fails to fulfill the terms of a lease agreement, most commonly by moving out before the lease term has ended. It is also known as property debt, early move out, lease break, property collections, and remaining balance. A broken lease can significantly impact your ability to rent or lease an apartment in the future. Many people face this issue and have limited options on how to proceed. Second Chance Apartments assists individuals in overcoming this challenging situation.
Things to Do Before Breaking a Lease
There are several ways to avoid a broken lease. It is always best practice to:
- Contact your apartment management before breaking your lease to see if an agreement can be reached beforehand.
- Check if your apartment allows payment plans before moving out.
- Review the process of moving out before your lease ends, as outlined in your lease agreement.
Before deciding to break a lease, you should also consider if you have already secured a new living arrangement. People break leases for various reasons, such as job loss, illness, family situations, or safety concerns. That’s why it is crucial to contact your apartment complex beforehand, as they may be able to accommodate you or offer alternative living arrangements. Many apartment complexes have multiple locations throughout Texas and could potentially transfer your lease to a safer or more affordable unit. Negotiating a settlement or payment agreement before moving out is another option.
The Impact of Breaking a Lease on Your Credit and Ability to Lease Again
Apartment complexes typically charge you the remainder of your lease or charge until someone else rents your apartment. You may also face move-out fees, cleaning fees, and other costs specified in your lease agreement. Apartments generally provide an opportunity to pay this debt within 30 days of moving out. In Texas, many apartments allow payment arrangements. Making routine monthly payments can prevent the debt from appearing on your credit report in most cases.
If you do not attempt to settle the debt or set up payment arrangements, the apartment complex may refer you to a collection agency. The collection agency will then report the debt to your credit bureau, making it difficult to lease another apartment. This collection can remain on your credit report for up to 10 years in most cases. Additionally, the broken lease will be reported on your rental history, a private report maintained by many landlords and apartment complexes.
Apartment complexes are generally reluctant to lease to individuals with previous broken leases. They prefer any outstanding debts to be paid in full or to have a payment arrangement in place. It is common for apartments to charge additional fees and deposits when working with someone who has broken prior lease agreements. Second Chance Apartments maintains a database of apartments more likely to work with individuals with credit blemishes and broken leases.
Second Chance Apartments recommends trying to settle all prior debt before renting. We have published articles outlining how to settle a debt. Debt settlement is when you and the collection company agree on a settlement amount, typically ranging from $0.40 to $0.70 cents on the dollar. However, this settlement usually requires a full payment, meaning you cannot make payment arrangements on a debt settlement. Settling your debt makes it easier to rent or lease a new apartment or home.
After settling a debt and paying the collection company, you will receive a receipt stating the debt has been paid in full. With this receipt, you can generally lease an apartment without any issues. We recommend contacting a credit repair agency after paying off the debt to have the items removed from your credit report permanently.
How Second Chance Apartments Can Help
Second Chance Apartments has been in business for over six years, during which we have helped thousands of people find housing throughout Texas. Our services are 100% free, as we receive compensation from the apartments we refer to you. We provide all of our clients with a pre-screened list of apartments that are friendly to those with broken leases. Additionally, we offer valuable resources and tips for every client, ensuring a smooth transition to their new home.
One of the most significant advantages of using our services is that after you lease an apartment through us, we will give you a rebate on the commissions we receive. This allows you to save even more money while securing a comfortable living situation.
Our website is a treasure trove of information, providing helpful articles on topics like renting with bad credit, how to move out of apartments before the lease term is over, dealing with apartment discrimination, and credit restoration. We also provide information on renting with evictions, and DIY credit repair tips among others.
To receive a free list of apartments that are friendly to renters with broken leases, please click here. Let Second Chance Apartments help you find the perfect home, even if you’ve faced rental challenges in the past.