Can a Landlord Terminate a Lease Early to Sell the Property or Move In?

Written on August 15, 2017 by , updated on August 16, 2017

Landlords can terminate a lease with proper notice if tenants don’t keep their end of the contract, which is called terminating “with cause.”

A landlord might want to terminate a lease early “with cause” for a variety of reasons, including unpaid rent, new occupants you didn’t give permission to add, a pet when there’s a no-pet policy, or if the tenant’s dealing drugs or violating the lease in any other way.

But what if the tenant didn’t do anything wrong, but the landlord wants the tenant to move for other reasons? For example, if you want to sell your house, you could list it with the tenant still living at the property, but it’s easier to get the house ready and then show it when it’s vacant.

Sure, you own the house, and you have a right to sell it any time you like. But can you terminate the lease early because you want to sell?

Related: Tenants’ Rights When Selling an Occupied Rental Property

Or what if you want to terminate the lease because you or a relative wants to move into the house? Again, it’s your property, so you can live there if you want. But can you terminate the lease so you can move in right away?

Yes, if it’s in the lease

You can put any kind of clause in your lease, including one that allows you to break the lease early. Landlords who know they want to sell soon, or anticipate moving back in at some point, might put a clause in the lease that allows them to terminate the lease early, without cause.

The clause usually has language to the effect that the lease will terminate (typically after 30 days’ notice) upon sale of the property or if the landlord wishes to live in the property.

If you put this kind of clause in your lease, don’t try to sneak it in by using legalese in tiny print so you can get one by your tenant. If you add this type of early termination clause, make sure you point it out to your potential tenant and make sure they understand the meaning of the clause. They need to know before they move in if there’s a possibility you’ll terminate the lease early.

No, if it’s not in the lease

You might not have had the foresight to know that you would sell during your tenant’s lease term, or that you’d want to move in. That means you probably didn’t put an early termination clause in the lease that your tenant agreed to and signed. If that’s the case, then you can’t kick your tenant out without cause. Period. End of story.

If it’s not in the lease, then you can’t kick your tenant out just because you want to move in.

If the lease has a fixed term, it applies to both parties—you and the tenant. Just as the tenant can’t break the lease early without being responsible for paying rent, unless and until you can rent to someone else, you can’t break the lease that your tenant signed.

But you can ask the tenant if they want to leave early. Maybe they do. Or you can offer your tenant some cash to move out early. But the tenant doesn’t have to take you up on your offer. In that case, you have to wait out the lease term before you take back your property.

Related: “Cash for Keys” will Motivate Bad Tenants to Move Out Quickly

Opt for a month-to-month lease

Month-to-month agreements allow the landlord or the tenant to terminate the lease, usually with just 30 days notice.

Look up the laws for your state, as the laws vary between states and sometimes even within cities or counties. Some jurisdictions, for example, require landlords to give 60 days notice, even on month-to-month agreements.

For example, in Portland, Oregon, landlords who have a month-to-month rental are required to give tenants 90 days notice. Make sure you know the rules for your area before you rent out your property.

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97 CommentsLeave a Comment

  • Jen

    My business lease started jan of 2018. Now Dec of 2018 I was told, by an attorney my bldg landlord sold the bldg and new landlord is planning on demolishing the building to build into a residential apartment. Closing date is in 2 weeks. Some businesses on this bldg lease is almost done so they are not paying rent until they have to leave. I have still have 4 year lease left with addl 5 year option. All stated on the lease document (with amount of each increase each year). My problem is, I invested over $100,000 on this business. What is my option? Am I getting kicked out? Is new landlord will try to buy me out? if so, what is normal amount or percentage of amount? my current rent is $2800, Revenue over $200,000 PLEASE HELP

  • oc

    My husband has a cabinet making workshop employing 10 people and generating a solid revenue for the last 15 years. The landlord passed away earlier in the year and now the son is in process of selling to property developers. My husbands company still has 5 years on the lease but it appears they will be asked to move. Does he have a right to hardship payments for the break of lease. what is the reference point for this payment.would really appreciate input. thank you much.

  • Seani

    My landlord is telling me I need to move out because the people buying the house want it empty before my lease ends. I have been an excellent tenant and by law I know I do not have to leave until my lease ends (there are no special clauses about the lease ending early). What should I do? I don’t want to be a mean person and have the landlord miss out on the sell but I cannot move by the date they are “evicting me”. I’m wondering if I should wait for them to close and then discuss with the new landlord ?

    • Laura Agadoni

      Hi Seani,
      I would recommend that you discuss this with your current landlord. Let your current landlord know that you intend to stay there per the lease term. You are not being mean. You’re landlord is trying to bully you, it sounds like to me.

    • Permoon Saeed Akhtar

      My tenants are good but the problem is my bank is not renewing my mortgage
      I have to sell my condo
      I have a one year lease agreement with my tenants and one is not expired yet
      Can I vacate my property in order to sell it

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