It’s the first of the month and your rent is due. As you write out the rent check, you say to yourself, “I can’t believe I’m paying this much money in rent! I’m just throwing my money away! I need to buy a house while interest rates are still low!”
Great idea. But there’s just one little problem: How do I get out of my lease when I find a house to buy?
While you can’t break a lease whenever you want, you do have a few options.
You Could Sublet Your Place. If your lease has six months or more on it, your best bet could be to sublet your place to another person.
You Could Start Searching Near the End of Your Lease. If timing works in your favor, you could start your search with 60-75 days left on your lease. That should be enough time to find a place, get under contract, and close on it.
You Could Negotiate a Month to Month Lease. Some landlords will allow you to have a month-to-month lease and vacate with a 30-day notice. When you get a property under contract, 30 days is enough time to give your notice.
You Could Involve a Real Estate Agent. Your best bet is to engage an agent, like me, and inform him or her or me that you are motivated to buy a home. In addition to selling real estate, I own Rooftop Property Management, LLC and have lots of experience with leases, landlords and tenants. I would be happy to read your lease and talk to your landlord about your options of exiting your lease.
If your landlord is also a real estate agent, watch out for this trick. He or she may offer you a month-to-month deal without a rent increase in exchange for his services. Wow, what a nice person! Except here’s what is really happening: the landlord/agent has threatened to increase your rental rates unless you work with him.
If you want to work with your landlord to buy a home, that’s fine. But if you don’t, and there’s another agent with whom you’d rather work, then let him or her deal with the landlord/agent. A house is the biggest purchase you’ll make. You should be able to work with whomever you want, and not feel coerced into a relationship you’re not comfortable with.
If you feel the time is right to buy a home, don’t let your lease stop you. It’s a minor issue that is easily handled, especially if you enlist a real estate agent who is experienced with leases to help you.
Please contact me if you would like a Free Consultation about your lease and buying a house.
Gary Clark's Real Estate Tips 