California Law on Breaking a Lease if You Become Unemployed
California landlords must comply with the California Property Code. The code establishes the respective rights between California landlords and tenants. California tenants who become unemployed have a continuing obligation to remit their rent payments in a timely manner, and unemployment is not a justifiable reason for an early lease termination. If you become unemployed during your tenancy, you may be required to continue paying your rent and may not have a justifiable legal excuse to prematurely terminate your lease.
Overview
California law does not recognize your unemployment as a valid reason for prematurely terminating your lease. However, if you become unemployed, and you are a month-to-month tenant or a verbal lease tenant, you may be able to terminate your tenancy at-will for any or no reason after providing the requisite amount of notice.
Tenants-at-Will
Typically, tenants-at-will are those with month-to-month lease agreements or no written lease agreements covering their rental obligations. In these types of lease arrangements, you may terminate your tenancy by providing your landlord with at least 30 days of written notice prior to moving out and before your next rent payment is due. For example, if you pay rent on the first of every month, you must terminate your least at least 30 days before the next month's rent is due. If you fail to give at least 30 days' written notice, you will have to pay another month of rent.
Exceptions
California law allows early terminations for certain types of extenuating circumstances. California law allows military tenants to prematurely end their leases under the federal Soldiers' and Sailors' Civil Relief Act. The federal law allows military service members and their families to prematurely end their leases upon a permanent location transfer or deployment to active duty. Military tenants must give 30 days' advance written notice if they are month-to-month tenants or under verbal lease agreements. All other tenants must give at least 90 days' written termination notice.
Valid Reasons for Early Terminations
California law also allows tenants to prematurely terminate their leases if their landlords fail to provide habitable premises or breach their leases by failing to comply with their lease obligations. In limited circumstances, tenants with severe health conditions or mental impairments can request early terminations. Absent extenuating circumstances, you may not terminate your lease before your lease expires without having to pay the remaining rent payments. If you fail to pay rent, your landlord can sue you for remaining rent.
Landlords' Recourse
Your landlord can sue you for terminating your lease prematurely due to your subsequent unemployment, and he may seek collection of your remaining rent payments. However, your landlord is required to mitigate his damages by trying to rent your apartment to another tenant. Your landlord does not have to rent your apartment before renting his other apartments. He just needs to make a reasonable effort, as determined on a case-by-case basis, to rent your apartment and mitigate his damages.
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