When Tenants Break the Lease: What Housing Providers Can (and Can't) Do

It’s frustrating when a tenant decides to leave before their lease is up. But in California, housing providers have specific legal duties when that happens. This guide explains what you can legally require from the tenant, what you must do in response, and how to protect yourself without overstepping.

1. Can a Tenant Break a Lease?

Yes, but that doesn’t automatically let them off the hook. A lease is a legally binding contract. If a tenant moves out early without a legal reason, they may still be responsible for:

• Rent owed through the end of the lease term

• Or until the unit is re-rented, whichever happens first

The landlord cannot simply deny the tenant’s request to break the lease and collect the full remaining rent. California law requires owners to act in good faith to minimize the financial loss.

2. What Landlords Cannot Do

You may not:

• Refuse to re-rent the unit and charge the tenant for the full term

• Keep the full security deposit unless the deductions are lawful

• Add financial penalties for breaking the lease that are not in the agreement

You also cannot delay re-renting the unit on purpose just to hold the tenant financially responsible longer. You are required to take reasonable steps to re-rent it.

3. You Have a Duty to Mitigate Damages

California Civil Code § 1951.2 requires landlords to make a reasonable effort to re-rent the unit. That includes:

• Advertising the unit promptly

• Responding to rental inquiries

• Accepting qualified applicants

You may not reject qualified applicants in order to collect more rent from the departing tenant.

Tip: Keep a record of your efforts, such as ad listings, showing logs, and applications received.

4. What You Can Recover

If a tenant breaks the lease, you can recover:

• Rent lost during any vacancy period

• The difference in rent if the new tenant pays less

• Reasonable re-rental expenses such as advertising or lease-up costs

• Lawful cleaning or repair costs from the security deposit (Civil Code § 1950.5)

You cannot collect more than you would have received if the original lease had been fulfilled. Once the original lease term ends, your right to recover rent shortfall ends as well.

5. Sample Calculation: Tenant Breaks Lease Mid-Year

Let’s say you had a tenant on a 12-month lease from January 1 to December 31, 2025, at $2,000 per month. The tenant moves out early on June 30, 2025, without legal justification.

You take reasonable steps to re-rent the unit and successfully lease it again starting August 1, 2025, but at $1,800 per month.

Here's what you may legally recover:

You may also recover reasonable advertising and lease-up costs. But you cannot recover anything beyond December 31, 2025, which is the end of the original lease term.

6. Exceptions: When Tenants Can Break the Lease Legally

Some tenants have a legal right to break the lease early without penalty. These situations include:

• Victims of domestic violence, stalking, or abuse (Civil Code § 1946.7)

• Active duty military under federal law

• Habitability problems serious enough to support a claim of constructive eviction

In these cases, the tenant may owe partial rent through the move-out date but cannot be held liable for the remainder of the lease.

7. Best Practices for Landlords

• Do not say “You can’t break the lease.” Instead, acknowledge the lease is binding but offer to work out a legal early termination arrangement.

• Use BPOA’s Premature Lease Termination Agreement, available in the Rental Housing Forms Library, to document the tenant’s early departure, what they still owe, and your right to re-rent the unit.

• Refer to BPOA’s Move-Outs & End-of-Tenancy Forms section for:

  • Acknowledgment of Notice to Vacate

  • Pre-Move-Out Inspection Report

  • Photo Documentation Checklist

  • Security Deposit Accounting Statement

  • Suggested Move-Out Instructions

These forms are designed to help you protect your rights, recover lawful deductions, and stay in compliance.