How to Terminate a Rent to Own Agreement on Property

Renting to own helps you build equity and fix credit problems.
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Rent-to-own property allows you to own your own home as you build equity and fix credit problems. Similar to renting a condo or apartment, you will have to sign a contract. However, unforeseen circumstances may arise causing you to terminate the agreement early. Approach the situation with the property manager delicately to avoid a more stressful situation.

Step 1

Read the terms of your lease carefully. Most property owners require at least a 30-day notice to terminate the lease. The renter may also be required to pay a liquidated-damages fee, as set by the landlord in the contract. This can be costly.

Step 2

Notify the property manager as soon as possible if you are considering breaking your contract. The sooner you inform them of the situation, the more likely they are to work with you. If you vacate the property without notice, the property manager could sue you for breach of contract. The judgment will likely appear on your credit history, making it harder for you to rent in the future.

Step 3

Ask your landlord if he or she is OK with you subleasing the property to someone who can take over the remainder of your lease. Some property managers are open to this idea if you are upfront with them early on about your moving situation and you approach them in a friendly and professional manner.

Step 4

Pay the early termination fee as defined by the lease agreement, return the keys and move out if you choose to not seek the guidance of an attorney and are not able to sublease the property.

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