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What is a Broken Lease and How it Affects You

By Edited Apr 13, 2015 0 1

What is a broken lease and why is it on my record? We normally field several calls from clients your looking to lease an apartment home. And we are always ready to assist them. They normally end up with a statement that goes something like this, they are searching for an apartment home but the only problem is that ... The majority of the time they have a broken lease.

A broken lease will occur when a resident exits his/her apartment home without fulfilling the terms of the lease. Each and every lease with have a starting date and ending date. Almost every lease will also include a buy out clause. This will state that if the resident needs to leave the apartment home before the end date, they can pay a fee usually equal to one or two months rent. After a renters leaves the apartment home without fulfilling their obligations, the management company will then report the broken lease to the three major credit bureaus. These include Equifax, Experian, and Transunion. In the future if the individual with the broken lease were to apply to another apartment community, it would appear on the credit report.

Why won't apartment communities accept individuals with a broken lease. It costs the apartment community a lot of money when a renter skips out. They have to refurbish the apartment unit to its previous state. Then they have to advertise and put in additional costs in order re-lease the units. In the end apartments believe that if you have broken a lease once that shows your character, and you are just as likely to break another one.

If your serious about moving into a community, there are a couple things you can do to rectify the situation.

You can pay the broken lease off. Contact the previous management company and they will be happy to take your payment. Ask them for a letter stating that you have paid off the broken lease. They should also contact the credit bureaus. Not your credit report should reflect the fact that you paid it off.

If you cannot afford to pay it off all at once, many communities will work on a payment plan with you.

Good luck leasing your next apartment home.

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Comments

Jan 31, 2011 12:31pm
ezlease
We have seen Apts holding broken leases against client's from over 10 years ago.
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