Can You Break a Rent Controlled Lease?
Breaking a rent-controlled lease is sometimes easy. A landlord with a waiting list for your apartment may actually be eager to see you leave, according to the New York City Rent Guidelines Board. Many apartments in New York City are governed by rent control, with rent increases closely regulated. However, if you break the lease, the landlord has more leeway in increasing the rent for the next tenant. That means your decision to move out early could be profitable for the landlord.
Background
The goal of rent control and rent stabilization is to protect renters from unreasonable rent increases, while also protecting the interests of landlords. Rent control laws are usually determined by local governments. In Los Angeles, the laws are part of the Los Angeles Municipal Code, for example. Rent control became law in some areas after price-gouging by some landlords. During periods of high demand, some landlords asked for exorbitant rent increases as leases expired. Some local governments felt that caused unreasonable hardships for residents and passed rent control laws as a result. The laws can cause tension between tenants who want affordable housing and landlords who wish to charge what the market will bear.
Permission
You should ask your landlord for permission to move if you want to break your rent-controlled lease. However, the landlord is not obligated to agree. The lease is a formal contract, and the landlord has the right to enforce it, including forfeiture of your deposit. If you leave without permission, the landlord can file a lawsuit forcing you to pay the remaining rent on your lease for as many months as the apartment is vacant. Get the terms of an early-termination agreement in writing.
Sublease
If the landlord will not allow you to break the lease, you should review the terms of the lease to determine any escape clauses or contact the local agency responsible for rent control enforcement. For example, if youre in New York City, you can ask the landlord for permission to sublease the apartment to someone else. If the landlord refuses, you may qualify to legally break the lease within 30 days.
Considerations
Rent control can also apply to condominiums, townhomes, duplexes and mobile homes. In Los Angeles, rent stabilization laws also apply to leases on hotel rooms, motel rooms and rooms in boarding houses if a person remains for more than 30 days. Single-family homes are usually not subject to rent-control laws.
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