Early termination fee equal to two months' rent
Two months' rent is at the high end of normal — typical buyout fees are 1–2 months' rent plus loss of deposit. It's enforceable in most states, but you can usually negotiate it down.
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What it actually means
An early termination fee (sometimes called a 'lease break fee' or 'buyout') is what the landlord charges you for ending the lease before the end date. Two months' rent is on the steep end — most market leases land between one and two months.
The fee is meant to cover the landlord's cost of finding a new tenant. In most states, the landlord still has a legal duty to 're-rent' the unit (called mitigation of damages), which means they can't double-dip by charging you the fee AND collecting rent from a new tenant for the same month.
What it looks like in a lease
"Tenant may terminate this Lease early upon (i) sixty (60) days' written notice to Landlord and (ii) payment of an early termination fee equal to two (2) months' Rent. Tenant shall remain responsible for Rent through the date of vacancy."
What to watch for
- Whether the fee is in addition to forfeiting your security deposit
- Notice requirement (60 days is normal; 90+ is aggressive)
- Whether you're still on the hook for rent until the unit is re-rented
- Whether the fee applies even for protected reasons (military, domestic violence, uninhabitable conditions)
How to negotiate it
Counter with 'one month's rent OR forfeit of security deposit, whichever is lower' and a 30–60 day notice. If they won't move on the dollar amount, ask for a re-rental credit: any rent the landlord collects from a replacement tenant during your remaining term is deducted from what you owe.
When it crosses into a red flag
- More than two months' rent
- Fee is owed IN ADDITION to all remaining rent on the lease
- No mitigation language (landlord doesn't have to try to re-rent)
- Fee still applies under federal protections like SCRA (military) — that's often unenforceable but signals a bad-faith landlord
Frequently asked questions
Can a landlord charge an early termination fee AND keep my security deposit?
Usually no — most states only allow the landlord to collect actual damages, not penalties. If the lease says 'fee plus forfeiture of deposit,' that stacked penalty is often unenforceable, but you may have to fight for it in small claims.
Do I still owe rent after I pay the early termination fee?
It depends on the lease. A true 'buyout fee' replaces your remaining rent obligation. If the lease says you owe the fee AND remaining rent, the landlord is usually limited to one or the other under the duty to mitigate.
Are military members exempt from early termination fees?
Yes. The federal Servicemembers Civil Relief Act (SCRA) lets active-duty service members terminate a residential lease with 30 days' notice after the next rent due date, with no early termination fee, when they receive PCS or deployment orders of 90+ days.
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.
