Early Lease Termination

Breaking a lease in Schaumburg (or anywhere else) before the end of its term is risky, and you should always consult with a team of early lease termination attorneys knowledgeable in Schaumburg landlord-tenant law before attempting to end your lease. This article aims to provide general legal information (and not advice specific to your situation) about breaking a lease in Schaumburg.

Most leases in Schaumburg are for a one-year term, often with a summer starting and ending date. This arrangement benefits landlords and tenants, providing certainty, and moving in the summer is more convenient. This article will focus on yearly leases, as ending a month-to-month lease before the end of its term doesn’t come up often.
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In any discussion about tenants’ rights in Schaumburg, including breaking a lease, we have to address the applicability of the Residential Landlord and Tenant Ordinance (“RLTO”).

The RLTO is the primary source of renters’ rights law in Schaumburg. It applies to most apartments in Schaumburg but not to suburban Cook County. The most significant exception to the RLTO is for owner-occupied buildings with less than seven dwelling units. If your building has seven or more units, the RLTO likely applies, and if you live in a smaller building where the owner lives somewhere else, the RLTO probably applies.

Tenant Liability for Rent Generally

Before discussing ways to end a lease, it is essential to understand what happens when a tenant stops paying rent and moves out (this is not an article about eviction).

When a tenant and landlord execute a written yearly lease, the tenant promises to pay monthly rent for the lease term. The obligation to pay monthly rent does not end simply because a tenant moves out and turns over the keys.

If a tenant in Schaumburg stops paying rent and moves out (abandons the unit), the landlord must make reasonable efforts to find a new tenant, mitigating the landlord’s loss. The landlord then has a claim against the abandoning tenant for rent for the remaining term, plus mitigation costs (advertising, etc.), minus rent obtained from the new tenant.

Schaumburg Lease Breaking Options

There are several options to consider when deciding how to break a lease. They are:

• By written agreement with the landlord
• Buyout clauses
• Subleasing
• Re-renting
• Violations of the RLTO

Breaking a Lease in Schaumburg by Written Agreement

Breaking a lease by written agreement with the landlord is the best option. This option is superior because the rights and remedies of the parties are resolved with finality and if properly drafted, nothing will haunt the tenant in the future.

Some landlords are very understanding and willing to terminate a lease early, especially if the tenant gives advance notice and the termination occurs in the summer months. Landlords may release the tenant from the lease, negotiate financial compensation, or request that the tenant find a suitable tenant.

In Schaumburg, tenants often have financial leverage if the landlord has violated the RLTO. When a tenant has claims for financial recovery under the RLTO, the tenant may negotiate a full or partial release of these claims in exchange for lease termination.

If a tenant has to break their lease, they should discuss their options with their landlord as soon as possible. If the parties agree, it must be in writing and ideally drafted by the tenant’s attorney.

Buyout Clauses

More leases now contain buyout clauses, especially when the landlord is a large corporation. Buyout clauses allow the tenant to end their lease early to pay a fee, usually equal to two or three month’s rent.

If a tenant intends to exercise a buyout clause, they should have an attorney read it to ensure that the landlord is giving up their right to sue the tenant for unpaid rent. After review, the attorney can draft a settlement agreement properly breaking the lease.

Subleasing

Tenants in Schaumburg have the right to sublease if the property is subject to the RLTO. A landlord can require permission for the tenant to sublease, but that permission may not be unreasonably withheld.

Subleasing is when the original tenant becomes the new tenant’s landlord. The original tenant signs a lease with the new tenant, collects rent, and continues to be obligated to the original landlord for rent payments and damage to the property.

Subleasing in Schaumburg is strongly discouraged due to the complexities involved. The original tenant puts their financial well-being at risk, as they may be sued if the new tenant stops paying rent or damages the property. Moreover, the original tenant must comply with the RLTO, which is challenging.

Re-Renting

Re-renting is different from subleasing and is much preferred. Re-renting occurs when the terminating tenant finds a suitable new tenant for the landlord. The landlord terminates the lease with the old tenant and signs a new lease with the new tenant. The old tenant is then absolved of all liability under the original lease.

Terminating for Violations of the RLTO

(SCHAUMBURG RLTO REGULATED PROPERTIES ONLY)

The RLTO has several provisions that, if violated, allow for lease termination. Terminating for RLTO violations is not ideal because the landlord may later sue the tenant, claiming that the termination was not proper or that the required procedures were not followed. Legal counsel is essential when breaking a Schaumburg lease.

The following provisions allow for lease termination:

• Unlawful Entry (5-12-050 and 5-12-060)
• Failing to Identify the Owner and Agents (5-12-090)
• Failing to Notify of a Foreclosure Action (5-12-095)
• Failing to Notify of Conditions Affecting Habitability (5-12-100)
• Material Non-Compliance With the Lease and Other Conditions Issues (5-12-110)
• Casualty Damage
• Failure to Deliver Possession
• Failure to Provide Essential Services

For more information on breaking a lease in Schaumburg, talk to a lease termination attorney as soon as possible. Mistakes can be expensive, and attorneys can interpret and apply the law while negotiating and adequately documenting a voluntary lease termination. The more time provided for a termination arrangement, the higher the likelihood of a successful outcome.

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