What is a broken lease and how does it affect you? A Broken Lease occurs when a renter doesn’t fulfill a lease agreement. Most commonly this happens when a renter moves out ahead of time. Broken lease goes by many other names such as property debt, early move out, lease break, property collections, and remaining balance. A broken lease can have a strenuous effect on your ability to rent or lease an apartment again in the future. Many people experience this and have limited options on how to move forward. Second Chance Apartments helps individuals facing this horrible situation.
Things to do before you break a lease
A broken lease can be avoided in many different ways. It is always best practice to contact your apartment prior to you breaking your lease to see if an agreement can be set up beforehand. Apartments will allow you to get on a payment plan prior to you moving out. Your apartment lease will also outline the process of moving out before your lease ends. Another thing to consider before breaking a lease is, have you located a new living arrangement. We understand that people break leases for many different reasons, including loss of job, sickness, family situations or safety. This is why it is best practice to contact your apartment complex prior to you moving out because they may be able to accommodate you or make other living arrangements for you. A lot of apartment complexes have multiple locations throughout the Dallas-Fort Worth area and can potentially transfer your lease to a safer or more affordable unit. You can also negotiate a settlement or payment agreement before moving out.
The effect breaking a lease has on your credit and your ability to lease again
Apartment complexes will normally charge you the remainder of your lease or charge until someone rents your apartment again. You will be charged move out fees, cleaning fees and a host of other fees outlines in your lease agreement. Apartments will give you an opportunity to pay this debt normally within 30 days of moving out. Apartments in the Dallas-Fort Worth area will allow you to make a payment arrangement. If you make routine payments monthly this will prevent the debt from going onto your credit in most cases. If you do not make any attempt to settle the debt or set up payment arrangements the apartment complex will refer you to a collection agency. The collection agency will report this debt to your credit bureau. When the collection agency puts this on to your credit report it will be very hard to lease another apartment. This collection can stay on your credit report for up to 10 years in most cases. The broken lease will also be reported to your rental history which is a private report that many landlords and apartment complexes maintain. Apartment complexes do not like to lease to individuals who have broken prior leases. Apartment complexes prefer any previous debts to be paid in full or at a minimum have a payment arrangement set up. It is common for an apartment to charge additional fees and deposits when dealing with an individual who has broken prior lease agreements. Second Chance Apartments keeps a database of apartments who are more likely to work with individuals with blemishes on their credit as well as broken leases.
Second Chance Apartments recommends that you try to settle all prior debt before renting. We have written articles outline how to go about settling a debt. Debt settlement is when you and the collection company agree on a settlement amount. Most debts can be settled for $0.40 to $0.70 cents on the dollar. However, this settlement is typically due in full payment so you cannot make payment arrangements on a debt settlement. If you settle your debt it becomes much easier to rent or lease a new apartment or home. After you settle a debt and you have paid the collection company you will get a receipt that states you have paid in full. With that receipt stating you have paid in full you can normally go ahead and lease an apartment with no problems. We recommend after you have paid it in full that you get with a credit repair agency to get the items removed from your credit report permanently.
How Second Chance Apartments Help
Second Chance Apartments has been in business for 6 years and in that time frame, we have helped thousands of people locate housing throughout the Dallas-Fort Worth area. Our services are 100% free, we get compensated from the apartments we refer to you. We give all of our client’s pre-screened list of apartments that are broken lease friendly. We have resources and tips available that we give to every client. The greatest part of all is that after you utilize our services and lease an apartment we will give you a rebate on the commission’s that we receive.
To receive a free list of apartments that are broken lease friendly please click here.