If a tenant moves in after signing a one year lease and paying the security deposit and first month’s rent, but now wants to vacate the premises a week later, is he entitled to a refund of any of the security deposit or first month’s rent? He has given no reason why he wants to move out.
A lease is a contract. Both signatories to the lease agreement, landlord and tenant, signed a binding contract that stated terms acceptable to both at the time the document was executed. Neither the landlord nor the tenant can unilaterally terminate the lease during the specified lease term without potential penalties. Both landlord and the tenant are legally responsible for performing under the terms of the lease unless and until both parties agree to a change in terms, e.g., a cancellation or an early termination.
In general, tenants cannot escape liability under their leases due to economic hardship, a job transfer, marital discord, or health issues. In most jurisdictions, even death does not terminate a lease and the deceased’s estate remains liable for the lease.
A tenant who breaks a lease is potentially liable for paying the rent until the end of the lease term or until a replacement tenant begins paying rent. The landlord in almost all states is held responsible for making reasonable efforts to reduce damages by finding a replacement tenant as soon as possible. In most cases a tenant forfeits his security deposit for application against unpaid rent and the costs of re-leasing the unit. Additionally the tenant can be sued for the rent still due under the lease terms along with any alleged damages to the unit. Most likely a landlord would obtain a default judgment for whatever amount was claimed in the complaint. The judgment would affect the tenant’s credit record and be collectable even if the tenant moved to another state, assuming the tenant doesn’t discharge the judgment in bankruptcy or the tenant becomes judgment proof due to some other reason. The tenant, in addition to owing rent for months that he didn’t even live in the unit, could have to pay the landlord’s attorney fees and court costs, as well as other costs for re-leasing of the unit.
It is often best for the two parties to negotiate a settlement agreeable to both rather become involved in legal actions.