A lease or rental agreement legally binds both the landlord and tenant to certain responsibilities for a certain duration of time. If the lease runs for a year, for instance, both parties must abide by its provisions for the entire year with no exceptions. 

The tenant must continue to pay rent due under the TN lease agreement, among other things, regardless of whether or not they live in the unit. 

But what happens when a tenant breaks a lease in Tennessee? Breaking a lease is bound to happen at least once for any career landlord.

Now, tenants can have wide-ranging reasons as to why they may request to break their lease early. They may want to move to a house they bought, move in with a partner, move out due to job relocation, or leave a domestic violence situation. 

It is important that both landlords and tenants remain in compliance with Tennessee law, even when breaking a lease. As a landlord, you must know what legal steps to take when breaking a lease occurs. Read on to learn more.

Rental Agreement in Tennessee 

Successful landlords all agree on one thing – a clear lease or rental agreement is key for success. When you can draft a detailed and concise lease agreement, you make it easier for both you and your tenant. 

Clear communication is crucial for landlords to avoid issues with their tenants. When drafting a lease agreement for a rental, landlords should specify all terms clearly and include all necessary clauses to address any potential concerns regarding early lease termination. On their part, they can easily understand their responsibilities, leaving no room for issues. 

Among other things in your lease, you’ll also want to include the following lease termination-related clauses. 

• The term of the lease. When drafting a rental or lease agreement, it’s crucial for a landlord to outline the exact terms clearly including what deductions can be made to the security deposit.
• Penalties for breaking a lease early. Include an early termination clause that lets the tenant know that breaking the lease attracts certain financial and/or legal repercussions, including forfeiture of any security deposits. In addition, include a written notice required for lease termination.
• The legally justifiable reasons for breaking the lease early. (More on this below). 
• The written notice the tenant must serve you before ending their tenancy. 
• The landlord’s responsibility to re-rent the unit. You may also want to let the tenant know whether you have a legal responsibility to “mitigate damages.” Under Tennessee law, the landlord must make reasonable efforts to re-rent a unit if a tenant breaks the lease and finds a replacement tenant. As a result, the tenant is only liable for the amount of time the unit was vacant. 
• The tenant’s right to sublet the unit. By default, tenants in Tennessee don’t have a right to sublet their apartment or rental units. Instead, they must abide by the terms of the lease, or make reasonable efforts to seek clarification from their landlord regarding the rental property.

Unjustified Reasons for Breaking a Lease in Tennessee 

Certain reasons simply don’t give tenants the legal right to break their lease agreement early. As a result, tenants who do so anyway don’t enjoy any legal protection against potential legal/financial ramifications the landlord may choose to lodge their way when they’re breaking a lease.

In Tennessee, the following are some of the unjustified reasons a tenant can give for breaking a lease early. 

• Buying a house. 
• Relocating for work. 
• Downsizing or upsizing. 
• Moving closer to friends or family. 
• Divorce or separation. 
• Inability to pay rent or unpaid rent.
• Moving in with a partner. 

Tenants who break a fixed-term lease for such reasons without court approval often get the best outcome after reaching some sort of agreement with their landlords. As a landlord, you may want to include an early termination clause in your fixed-term lease agreements.

Justified Reasons for Breaking a Lease in Tennessee 

The following reasons give tenants a legal justification to break their lease without earlier notice. Tennessee landlords should know the following when it comes to their rental property:

Active Military Duty 

The Servicemembers Civil Relief Act (SCRA) allows tenants who are on active military duty to break their lease without notice or further rent obligation. The tenant must meet the following qualifications for a smooth move-out process. 

• Have servicemember status. 
• Be deployed for at least 90 days. 
• The tenant must have signed the Tennessee lease agreement before entering active military service. 

Under Tennessee’s law, landlords have the right to verify a tenant’s military duty claim before agreeing to break the lease. You can request a copy of the tenant’s military ID as well as their Permanent Change of Station (PCS), or a written notice with a copy of the deployment letters from their commanding officer.

Domestic Violence 

A victim of sexual or domestic assault can also break their lease in Tennessee without notice or penalty. However, the tenant must be able to show evidence of the abuse to break the lease and forego their rent. Under landlord-tenant laws, the following must be true to terminate the lease in Tennessee:

• The violence must be committed against the tenant or their child. 
• The violence must be intended to cause the tenant harm, injury, or sexual assault. 

If you require proof of the incident in order to terminate the lease, the tenant may provide you with any of the following documents:

• Documentation of the assault from a licensed healthcare professional. 
• A copy of a protective order, temporary injunction, or a temporary ex parte order. 

Unlivable Living Conditions

Tennessee landlord-tenant law guarantees every tenant the right to a habitable home. Whether it’s a house or apartment, the rental unit must have, among other things, working sanitation facilities, safe railings, and proper electrical wiring. 

If a unit materially fails to meet such standards, the rental unit could be considered uninhabitable and the tenant can leave before the lease expires. As a landlord, you are responsible for ensuring that all repair requests from tenants are addressed promptly and inspections are carried out periodically. 

Landlord Harassment 

If proven in court, landlord harassment can also give a Tennessee tenant the right to terminate their lease early. Landlord harassment can take many forms, including the following. 

• Entering a tenant’s rented unit without notice. In Tennessee, the law requires landlords to serve their tenants with written notice before entry. 
• Trying to evict a tenant illegally
• Preventing tenants from paying rent
• Refusing to make the necessary repairs to the unit
• Discriminating against a tenant based on a protected class

If a landlord repeatedly violates a tenant’s privacy, it can constitute as landlord harassment and the tenant doesn’t have to wait until the lease expires to leave.

Death of the Tenant 

The death of a tenant also qualifies as a legitimate reason for early lease termination without notice in Tennessee. All you need from the tenant’s estate is a copy of the tenant’s death certificate. Alternatively, you can obtain it yourself from the state’s Department of Health. 

But even so, the tenant’s estate will still be liable to pay rent that is due. They may also be required to pay damages exceeding normal wear and tear and the security deposit as outlined in the lease. 

Disability 

Tennessee state law has protections in place for individuals with certain types of disabilities. Qualifying conditions include autism, epilepsy, cerebral palsy, HIV, diabetes, heart disease, and muscular dystrophy. 

Conclusion 

Most tenants who sign a lease will see it through to the end, and might even renew the lease and become long-term tenants. However, for some, they may need to break the lease for one reason or another. Knowing and understanding Tennessee landlord tenant laws is essential for Tennessee landlords who wish to avoid any trouble.

For expert help in managing your Tennessee rental, including help with drafting and breaking a lease agreement, look no further than Specialized Property Management Memphis. Contact us to learn more! 

Disclaimer: Please note that the information provided in this blog is intended for general guidance and should not be considered as a replacement for professional legal advice. It is important to be aware that Tennessee law pertaining to rental property management may change, rendering this information outdated by the time you read it.