When Tenants Break Lease Early: What Landlords Can (and Can’t) Do Legally in California

Few things frustrate landlords more than getting that unexpected message:

“I’m moving out early.”

Whether it’s a job relocation, financial hardship, or a sudden change of plans, tenants leaving before their lease ends can create confusion, financial loss, and legal headaches.

But here’s the truth: while it’s disruptive, landlords do have options. The key is knowing what’s legally allowed and what crosses the line.

In this guide, we’ll break down what California law says about early lease termination, security deposits, and landlord rights when tenants leave early, and how to protect yourself without violating tenant protections.

Understanding Early Lease Termination

When a tenant breaks a lease early, it means they’re leaving before the contractual end date. Common reasons include:

• Job relocation or family emergency

• Financial struggles or roommate conflicts

• Habitability issues (like unresolved repairs or safety concerns)

  
  

For landlords, this triggers important questions:

• Can I keep the security deposit?

• Do I have to re-rent immediately?

• Can I charge the tenant for remaining rent?

  
  

The answer to each depends on California landlord–tenant law, which aims to balance fairness between both sides.

What Landlords Can Do When a Tenant Breaks Lease Early

1. Keep Part or All of the Security Deposit (Legally)

Under California Civil Code §1950.5, landlords can withhold part or all of a security deposit for:

• Unpaid rent

• Damage beyond normal wear and tear

• Necessary cleaning to restore the unit’s condition

  
  

Always provide an itemized statement within 21 days of move-out explaining deductions. Failure to do so can expose you to double damages in small claims court.

2. Re-Rent the Unit: You’re Required to Mitigate Damages

California law requires landlords to make reasonable efforts to re-rent the property after a tenant leaves early. This is called the duty to mitigate damages.

In other words, you can’t just leave the unit empty and demand the full remaining rent. You must try to find a new tenant quickly: through ads, showings, or lowering rent if necessary.

Once re-rented, the original tenant is only responsible for:

• Rent owed until the new tenant moves in

• The cost of advertising or showing the unit

3. Collect Unpaid Rent — Within Legal Limits

If a tenant leaves without notice and the unit remains vacant despite reasonable re-rental efforts, the landlord can charge the tenant for unpaid rent until a new tenant is found or the lease ends, whichever comes first.

Example: If your tenant leaves in May and the lease runs through August, but you find a new tenant by June, the departing tenant only owes for May and June, not the full term.

What Landlords Can’t Do

1. Retaliate or Withhold Deposits Unfairly

Even if the early move-out feels frustrating, retaliation (like keeping the full deposit without justification) violates California landlord retaliation laws.

If a tenant left due to unresolved habitability issues, they may have legal grounds to terminate the lease without penalty. Always document communication about repairs and notices to protect yourself.

2. Charge Excessive Fees or Penalties

Some landlords try to impose “lease break fees.” While fixed fees can be legal if included in the lease, they must be reasonable and not punitive. A clause demanding three months’ rent, for example, would likely be unenforceable.

3. Ignore Re-Rental Obligations

Failing to make a reasonable effort to re-rent is one of the biggest mistakes landlords make. Courts often side with tenants if the landlord didn’t take proactive steps.

If you want to avoid a dispute, treat the early vacancy as a business problem to solve, not a punishment to enforce.

How to Protect Yourself in Future Leases

1. Add a Clear Early Termination Clause

This outlines how much notice is required and what costs the tenant must cover. It can include reasonable re-letting fees and clarify your duty to mitigate damages.

2. Set Realistic Expectations During Signing

Explain to tenants what happens if they need to move early. Transparency prevents most misunderstandings later.

3. Document Everything

Keep written proof of showings, advertisements, and communication. If a tenant disputes charges, this evidence can save you thousands.

4. Use a Legally Reviewed Lease Template

Avoid copy-paste leases from the internet. A well-drafted agreement can protect you from gray areas that lead to disputes.

For more on avoiding vague or one-sided terms, see our post on The Hidden Traps in Standard Lease Agreements.

When tenants break a lease early, landlords in California can recover losses,  but only within legal limits. Keeping deposits fairly, re-renting promptly, and communicating transparently not only keep you compliant, they also protect your reputation.

The best way to handle early lease termination is through documentation, diligence, and empathy. Acting within the law will always cost less than crossing it.

If you’re dealing with a lease break situation or want your lease reviewed, reach out to schedule a consultation with me so we can discuss your options and responsibilities before taking action.

FAQ

Q1: Can a landlord keep the security deposit if a tenant leaves early? Yes, but only for unpaid rent, damages beyond wear and tear, or cleaning costs. An itemized deduction must be provided within 21 days.

Q2: Do landlords have to re-rent if a tenant breaks the lease? Yes. California law requires landlords to make reasonable efforts to find a new tenant, this is called the duty to mitigate damages.

Q3: Can a landlord charge a “lease break fee”? Only if it’s written into the lease and is reasonable. Excessive or punitive fees are likely unenforceable.

Q4: What if the tenant left because of poor living conditions? If habitability issues were documented and unresolved, the tenant may be legally justified in breaking the lease without penalty.

Q5: How can landlords prevent early lease terminations? Use clear clauses, communicate expectations upfront, and keep a positive relationship with tenants.