Breaking a lease in Tennessee isn’t always simple for most tenants and landlords. Whether you’re a tenant needing to leave or a landlord facing an early termination, understanding Tennessee’s lease laws is essential.
Our blog post covers from legal grounds for breaking a lease and potential penalties to tips for facing early terminations. By knowing your rights and responsibilities, both tenants and landlords can handle the lease-breaking process smoothly and avoid unnecessary complications.
Termination Notices For Tennessee Landlords and Tenants
Both landlords and tenants must follow specific rules when breaking a lease. Here’s what landlords and tenants need to know about giving notice to terminate a lease:
Termination notice issued by landlords
In Tennessee, landlords must follow specific legal guidelines to terminate a lease. Below are the most common circumstances for which a landlord may terminate a lease:
- Noncompliance with Lease Agreement: If a tenant violates the lease agreement (such as by failing to pay rent), the landlord must provide a 14-day written notice. This notice gives the tenant 14 days to correct the issue before further action is taken.
- Misrepresentation on Rental Application: If the tenant provided false information on their rental application, the landlord has the right to terminate the lease with 14 days' written notice.
- Violent Acts or Threats: Under Tennessee Code Ann. § 66-28-517, if the tenant or someone on the premises with their consent commits or threatens a violent act, the landlord may issue a 3-day written notice.
- Health and Safety Violations: If the tenant fails to maintain the property in a way that affects health or safety, the landlord can issue a 3-day written notice for emergencies or a 14-day written notice for non-emergency situations.
- Fixed-Term Lease Termination: For fixed-term leases, the landlord cannot end the lease early without a valid reason (such as those listed above). Otherwise, they must wait until the lease term expires.
Termination notice issued by tenants
For tenants, lease termination requirements vary based on the lease type:
- Fixed-Term Lease: If a tenant is renting on a fixed-term lease with a specified end date, they must typically provide 30 days' written notice before the lease expires if they plan not to renew. Early termination might involve penalties, as stated in the lease agreement, so tenants should review these terms carefully.
- Periodic Leases (Weekly or Monthly): For tenants on a weekly lease, 10 days' notice is required. For monthly leases, 30 days' notice is necessary. Tennessee law does not mandate notice for ending a fixed-term lease upon its natural expiration.
- Property Damage: If the rental property is significantly damaged (e.g., by fire), and the premises become unusable, the tenant may provide a 14-day notice of termination.
Valid Legal Grounds for Tenants to Break a Lease in Tennessee
In Tennessee, tenants can legally break a lease under certain conditions without facing penalties. There are situations where Tennessee law allows tenants to end a lease early:
Early termination clause (if applicable in lease agreement)
Some leases in Tennessee have an early termination clause. This lets you break the lease early if certain conditions are met, like job relocation or a major life change. This option may come with a fee, so check your lease to see what’s required.
Violations of health and safety codes
If the rental property fails to meet basic health and safety standards, tenants may have grounds to terminate the lease. Examples include issues with structural integrity, unhygienic conditions, pest infestations, or problems with essential utilities (e.g., heat, water, or electricity).
If the landlord does not address such issues after notification, Tennessee law may allow the tenant to terminate the lease.
Active military duty
Under the Servicemembers Civil Relief Act (SCRA), tenants who are called to active military duty can legally terminate their lease early without penalty. If a service member receives orders for deployment or a permanent change of station, they can provide written notice and a copy of their military orders to the landlord.
The lease typically ends 30 days after the next rental payment is due. The SCRA also offers protections against eviction for service members, ensuring they can address housing matters without added pressure during their service period.
Landlord harassment or privacy violations
Under Tennessee’s landlord-tenant laws, tenants are entitled to privacy and protection from harassment. Landlords must provide reasonable notice (usually 24 hours) before entering a tenant’s unit and must not harass or intimidate tenants.
If a landlord repeatedly violates these rights through unauthorized entry, invasive surveillance, or continued harassment, a tenant may have justifiable grounds for breaking the lease.
Victims of domestic violence, stalking, sexual abuse, or elder abuse
Tennessee provides protections for tenants who are victims of domestic violence, stalking, sexual abuse, or elder abuse. Tenants facing such circumstances can end their lease early without penalty by providing the landlord with the required documentation, such as a police report or restraining order.
Court-approved conditions for lease termination
A court may authorize early lease termination if specific circumstances warrant it, such as severe property issues that remain unresolved or ongoing disputes between landlord and tenant. This route typically requires legal intervention but serves as a last-resort option for tenants who cannot otherwise terminate their lease.
Financial Impact on Tenants of Breaking a Lease in Tennessee
Breaking a lease without a legal reason in Tennessee can have serious financial consequences:
- Loss of security deposit: Landlords may keep this deposit to cover unpaid rent or repair costs. So, breaking a lease may result in losing your security deposit.
- Financial penalties: You may face fines or penalties outlined in your lease agreement for breaking it early.
- Lawsuits: Your landlord can sue you for unpaid rent or other costs caused by breaking the lease. If they win in court, you could end up paying extra legal fees on top of what you already owe.
- Credit score damage: If you don’t pay what you owe, breaking a lease can harm your credit score, which can impact loans, credit cards, and future rentals.
- Damage to rental history: Breaking a lease can create a negative mark on your rental history. Future landlords might view you as a risky tenant, making it harder to rent again.
- Continued rent responsibility: If landlords don’t find a new tenant right away, you could still be responsible for rent until they do, which can drag out the process.
Read more: Rent Payments | Late Fees | Tennessee Lease Agreement
How Tenants Can Minimize Financial Penalties
Helping your landlord find a reliable new tenant or subleasing the unit, if allowed, can reduce the time you’re responsible for rent. Openly negotiating with your landlord may also lead to reduced penalties or an agreement to pay only until the property is re-rented.
For additional support, consult a legal expert to explore options specific to your situation. If you owe remaining rent or fees, suggesting a payment plan can make the process easier for both parties. Proactive communication and cooperation with your landlord can go a long way in minimizing the financial burden.
Landlord’s Responsibilities When a Lease is Broken
Landlord’s duty to mitigate damages (re-renting the unit to reduce tenant liability)
In Tennessee, when a tenant breaks a lease, landlords have a legal obligation to mitigate damages. By re-renting the unit, landlords can reduce the financial liability of the previous tenant, who would otherwise be responsible for rent until the lease term ends.
Efforts to mitigate might include listing the property online, advertising, or showing the unit to prospective renters.
What happens if the landlord fails to mitigate damages?
If a landlord fails to take reasonable steps to re-rent the unit, they may lose the right to demand full payment for the remainder of the lease from the tenant.
Tennessee law expects landlords to actively seek a new tenant, and if they don’t, courts may rule that the tenant is not liable for unpaid rent after the move-out date. This protects tenants from paying for a unit left empty due to the landlord’s inaction.
Read more: What to Do When Your Rental Is Abandoned in Tennessee
Tips For Landlords To Prevent Early Lease Termination
To reduce the risk of tenants leaving before the lease ends, landlords can take proactive steps to keep tenants satisfied and minimize the likelihood of early termination:
1. Screen Tenants Thoroughly
Carefully review applications, check references, and conduct background checks to ensure the tenant is financially stable and has a history of fulfilling leases.
2. Maintain Open Communication
Be approachable and responsive. Regular, clear communication can help address any issues before they become major reasons for a tenant to leave early.
3. Keep the Property Well-Maintained
Timely repairs and property upkeep can improve tenant satisfaction and make them more likely to stay for the full lease term.
4. Offer Lease Flexibility Options
Consider adding flexible terms, such as an early termination clause with fees or the option to sublease, to give tenants some flexibility if their circumstances change.
5. Create a Positive Living Environment
Foster a respectful and positive atmosphere among tenants and keep common areas clean and secure. Happy tenants are generally less likely to move out unexpectedly.
Bottom Line
Breaking a lease in Tennessee can bring financial and legal challenges. Tenants should know their options to minimize costs, while landlords can take steps to prevent early lease terminations. Clear communication and understanding each party’s responsibilities can make the process easier for everyone involved.
