As a Nashville property management company, we know how crucial it is for landlords in Tennessee to know the laws regarding tenants breaking a lease. This will help you prevent problems in the future when you are faced with this situation.
In this article, we will discuss both justified and unjustified reasons for early lease termination. By knowing this information, you will know your rights and your tenants’ rights for breaking a lease.
Lease Agreements in Tennessee
As an apartment or rental unit owner, drafting a comprehensive rental agreement is essential to your investment. Discuss the terms and provisions included in the agreement before letting your tenant sign the lease.
It is the landlords responsibility to ensure that they understand the penalties for breaking a lease unjustifiably. In addition, you must also explain to your tenant their rights to justifiably break the lease.
The required notice a tenant must give when deciding to end their lease should also be stated in the agreement. In the state of Tennessee, your tenant must give you the following notice:
A Tennessee tenant is not required to provide written notice if they have a fixed term lease. However, the tenant is mandated to send notice if their lease is automatically renewed. The number of days of notice will depend based on the lease term:
- Week-to-week lease term: 10 days’ notice.
- Month-to-month lease: 30 days’ notice.
In your agreement, make sure to also include your responsibility to re-rent the unit.
According to Tennessee law, landlords are required to make reasonable efforts to re-rent the rental property. Tennessee landlords have a duty to mitigate damages. If the property is re-rented, the leaving tenant will only be responsible to pay rent while the property is vacant and will have no further rent obligation.
Finally, a clear lease agreement should include the tenant’s rights to sublet in Tennessee.
Unless you specifically state in the rental agreement that sublease is not allowed, a Tennessee tenant has the right to sublet a rental property. As a landlord, you may require your tenant to seek approval prior to subletting the property.
A tenant should send a letter of request via certified mail, including the sublet term, a copy of the proposed sublease, as well as the names and addresses of the proposed assignee. Moreover, if there are any co-tenants, signed consent from the other tenants may also be required.
Unjustified Reasons to Break a Lease in Tennessee
Under Tennessee law, if tenants unjustifiably break the lease, they may still be responsible for paying the remaining rent. The reasons stated below are generally not enough reason, on their own, to release a tenant from the lease. As a result, breaking a lease in Tennessee for these reasons will offer no legal protection.
- Buying a house.
- Relocating for education or career purposes.
- Downgrading or upgrading.
- Moving in with a partner and unable to pay to rent two units.
- Moving to be closer to family.
If a tenant needs to break a lease for the rental unit for any of the above reasons, the tenant should ask the landlord to agree to a mutual termination, at the landlord’s discretion.
Justified Reasons to Break a Lease in Tennessee
In some cases, tenants may be allowed to pre-terminate the lease if they have valid reasons for doing so. As a landlord in Tennessee, it's important to know the justified reasons for a tenant to break a lease early.
Here are the justified reasons for the early termination of a lease:
Early Termination Clause
A Tennessee landlord may include an early termination clause in the agreement. This clause allows tenants to break the lease earlier in exchange for a penalty fee. The clause should include the amount of the penalty and the number of days required for the notice.
Active Military Duty
Active service members may be allowed to terminate before the lease expires if they need to relocate due to deployment or a permanent change of station. They are protected from penalties from the time they enter the military up to 30 to 90 days after they are discharged from the service.
To be eligible, the lease must have been signed before they entered active military duty. Also, they must provide a copy of deployment orders or a signed notice from their commanding officer stating the pending deployment.
Uninhabitable Rental Unit
Under the law, a Tennessee landlord has the duty to provide a habitable space for their tenants. If landlords fail to provide a habitable property, the tenants may have the right to break their lease early.
To prevent this from happening, a landlord should ensure that they abide by the health and safety codes, address repairs and maintenance requests within a reasonable timeframe, and keep the premises in their best condition.
Violation of Privacy
A Tennessee landlord has the right to enter the premises for acceptable reasons. There is no specific required number of days for the notice to enter the rental property under Tennessee state law. However, a 24 hour-notice is always recommended. Landlord tenant laws state that if a landlord repeatedly violates the privacy of a tenant, they may be able to terminate the rent period.
In addition, a landlord may not change the locks as an attempt to evict a tenant. Lockouts are considered illegal in Tennessee.
Violation of the Lease Agreement
If the Tennessee landlord fails to fulfill their duties and responsibilities as provisioned in the lease agreement, a tenant may have the right to pre-terminate their lease. As a landlord, make sure to stay in compliance with the law and uphold your responsibilities.
Domestic Violence
A tenant who is a victim of domestic violence may be allowed to move out of the property for their protection.
Disability or Health Issues
If the tenant has a qualified disability, he/she may request for a pre-termination of the lease to accommodate his/her specific situation. This may be allowed under the Fair Housing Act.
Bottom Line
As a landlord in Tennessee, it’s essential to know the rules and regulations regarding breaking a lease to protect your interest. If you have more questions, and are in the Middle TN area, you may seek out a Nashville property management company to help you with any legal issues. Contact RENEW Real Estate Services at 615-800-8490 now!
This blog should not be used as a substitute for legal advice from a licensed attorney in your state. Laws change, and this post might not be updated at the time of your reading. Please contact us for any questions you have in regards to this content or any other aspect of your property management needs.