If you’re a Los Angeles landlord, you’ve probably wondered whether you can legally terminate a tenant’s lease. Whether you’re dealing with problematic tenants or planning to sell your property, it’s essential to understand when and how you can break a lease agreement without violating Landlord-Tenant law and incurring costly fines.
LA’s rental laws are strict, and landlords must follow specific guidelines depending on the type of lease and the timing of the termination. Understanding whether the tenant is in the middle of a fixed-term lease or on a month-to-month agreement is also essential, as the rules differ in each case.
Here’s everything LA landlords should know about lease terminations.
You Can Terminate a Lease in Certain Cases
While tenants in LA are well-protected under rent control and tenant rights laws, there are valid situations where you can legally terminate a lease. Typically, these cases revolve around significant changes in your personal or financial circumstances or tenant-related issues such as violations of the lease terms.
Landlords need to ensure they provide proper notice and follow the legal process to the letter. Ignoring these guidelines can result in costly legal consequences, including wrongful eviction lawsuits, penalties, forfeiture of the security deposit, and more. Therefore, it’s important to know your rights and obligations before proceeding with lease termination.
Terminating the Lease Early as a Landlord
Fixed-term leases generally restrict both parties’ ability to end the agreement early, but certain situations may allow landlords (or tenants) to terminate a lease before its expiration. These cases often involve personal reasons, changes in property ownership, or serious tenant misconduct. However, you need to be aware that each situation has its own legal requirements.
You or Your Immediate Family Members Plan to Move In
One of the most common reasons for a landlord to terminate a lease early is if they or a close family member need the property as a primary residence. In Los Angeles, you can legally end the lease for this reason, but you must follow strict procedures. Typically, this requires providing at least 60 days’ notice, and in some cases, you may even need to help cover the tenant’s relocation expenses, especially if the property falls under rent control.
If the tenant is on a month-to-month lease, the process is generally smoother. However, if they’re in the middle of a fixed-term lease, this type of termination is more complicated, and you may need to seek legal advice to ensure you comply with local laws.
You’re Selling the Rental Property to a Buyer Who Wants it Vacant
Selling a rental property can be a compelling reason to end a lease, especially if the buyer wants to take immediate possession of the home. In this case, you can legally terminate the lease, but similar to moving in, the process must be handled carefully. Notice periods, typically 60 days, still apply, and you may need to negotiate with tenants, especially if the property is rent-controlled.
If the tenant is on a month-to-month agreement, you have more flexibility in ending the lease. For fixed-term leases, however, it may be necessary to wait until the lease expires or offer incentives to encourage the tenant to move out early.
Your Tenant Committed a Lease Violation or Criminal Activity on the Property
Serious lease violations, such as non-payment of rent or illegal activities, give landlords a strong legal basis to terminate the lease. In these instances, you can issue a “cure or quit” notice, which gives the tenant a short period (usually 3 days) to correct the violation or vacate the property.
Criminal activity, such as drug-related offenses or violence, typically warrants immediate termination. However, ensure you have sufficient evidence before pursuing eviction to avoid potential legal challenges from the tenant.
Necessary Repairs or Renovations Require the Unit to Be Temporarily Uninhabitable
If the property requires extensive repairs or renovations that make it unlivable, you may have grounds to suspend or terminate the lease temporarily. However, this often comes with additional obligations, such as offering relocation assistance to tenants or allowing them to return once the repairs are complete.
For example, if the rental unit needs significant electrical or plumbing work, making it unsafe to live in, you may have no choice but to ask the tenant to move out. The notice requirements are still in effect, and it’s essential to communicate clearly with tenants about their rights during this process.
What Reasons for Breaking a Lease Are Unjustified?
Not every reason you might have for breaking a lease is legally acceptable. Knowing what reasons are unjustified can help you avoid legal pitfalls and ensure you act within the bounds of the law.
To Raise Rents for the Next Tenant
While it might be tempting to terminate a lease to increase the rent for future tenants, this is strictly prohibited. In rent-controlled areas like LA, landlords must follow specific rules about rent increases, and terminating a lease solely to raise rent is considered illegal.
If Legitimate Complaints Have Been Filed Against You or if They’ve Exercised Other Tenant Rights
You cannot terminate a lease as retaliation for tenant complaints, such as reporting unsafe living conditions or requesting necessary repairs. California law protects tenants from retaliatory actions, and landlords who attempt to terminate a lease for these reasons could face legal consequences.
Discriminatory Reasons
Discrimination based on race, gender, religion, nationality, or other protected characteristics is illegal. Terminating a lease based on these factors violates both state and federal fair housing laws and could result in significant legal penalties.
What Happens if You Break A Lease Without a Justifiable Reason?
Breaking a lease without a legally valid reason can have serious repercussions for landlords. Tenants can sue for wrongful eviction, and landlords may be required to pay damages or penalties.
When Can Tenants Break a Lease Legally?
While landlords can terminate a lease under certain conditions, tenants also have rights to break a lease without penalty, provided specific circumstances exist. Knowing when a tenant is legally allowed to end the lease can help landlords avoid misunderstandings and potential legal issues.
Some reasons tenants may legally break a lease include:
- Uninhabitable conditions: If the rental property has serious maintenance issues that affect the tenant’s health or safety, they may be able to break the lease without facing penalties via the CA Health and Safety Code.
- Active military duty: Under the Servicemembers Civil Relief Act (SCRA), tenants called to active military service are allowed to terminate their lease early.
- Victim of abuse: California law protects tenants who are victims of domestic violence, stalking, sexual abuse, or elder abuse, allowing them to terminate the lease early under Civil Code § 1946.7 to protect their safety.
Options for a Landlord When a Tenant Wants to Break the Lease Early
Sometimes, tenants wish to end their lease early, even without the legal grounds mentioned earlier. While this can be inconvenient, you have several options to manage the situation:
- Subletting: You can allow the tenant to sublet the property to another renter, keeping the lease agreement intact.
- Early termination agreement: Negotiate with the tenant to terminate the lease early, often in exchange for a financial settlement or finding a replacement tenant.
- Enforce early termination fees: If the lease includes an early termination clause, you can require the tenant to pay the agreed-upon fee for breaking the lease. However, you cannot retroactively apply and enforce ETFs if they’re not in the original lease.
Required Notice for Breaking a Lease
Landlords are required to provide tenants with adequate notice before terminating a lease. The amount of notice depends on the type of lease and the reason for termination:
- 60-day notice: Required if the tenant has been in the property for more than a year or for certain reasons like landlord occupancy or sale of the property.
- 30-day notice: Applies to tenants who have been in the property for less than a year or for ending a month-to-month lease.
- 3-day notice: This applies to serious lease violations, such as non-payment of rent or illegal activities, where the tenant must either “cure” the violation or vacate.
Wrapping Up
As a landlord in Los Angeles, terminating a lease isn’t always straightforward. There are strict legal requirements and protections in place for tenants, meaning you must proceed carefully. Understanding your rights, knowing the proper notice periods, and following the law is key to avoiding costly legal disputes.
If you’re unsure about your rights or facing a complex lease termination situation, getting help from a property manager or seeking legal advice can help you navigate the process smoothly.