Early termination fee equal to one month's rent

Reviewed by Marcus A. Hall, Founder
Standard clause
Common, reasonable, and usually fine to sign.
Quick answer

One month's rent is a reasonable early termination fee — standard in most markets. It's almost always enforceable.

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What it actually means

This is the tenant-friendly end of the spectrum. One month's rent compensates the landlord for re-marketing without penalizing you harshly.

Most courts consider one month reasonable. It beats being on the hook for remaining rent until a new tenant is found.

What it looks like in a lease

"Tenant may terminate this Lease early upon 60 days' notice and payment of one month's Rent as a termination fee."

What to watch for

  • Notice period required
  • Whether deposit is also forfeited

How to negotiate it

This is fair — accept it if offered.

When it crosses into a red flag

  • Fee plus remaining rent owed
  • Fee plus deposit forfeiture

Frequently asked questions

Is this better than no termination clause?

Yes — without one, you're liable for rent until re-rented or lease ends.

Related state law

Want to know how this works in your specific state? Read the Breaking a lease early guide, or pick your state from the guide index.

Related clauses

General information, not legal advice. Clauses are interpreted differently across states and courts. For a binding interpretation of your specific lease, consult a licensed attorney in your state.

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