Penalty for Not Giving 60 Day Notice: What You Need to Know
Understand the practical and legal implications of failing to provide a 60-day notice, including how it may affect future contractual relationships.
Leaving a rental property without providing the notice required by your lease, often 60 days, can lead to significant financial and legal difficulties. Understanding the potential penalties is crucial for tenants navigating the end of their tenancy.
Breach of Contract
A lease agreement is a legally binding contract outlining the terms both tenant and landlord must follow. Key clauses typically detail responsibilities such as paying rent, maintaining the property, and, frequently, providing a specific amount of notice—commonly 60 days—before moving out. This notice requirement is an enforceable part of the agreement.
Failure to provide the contractually mandated notice means the tenant has not fulfilled all agreed-upon terms. This constitutes a breach of the lease agreement, as the tenant has violated a condition they legally agreed to uphold.1ApartmentGuide. What Is a Breach of Contract? Know Your Rights Such a breach disrupts the procedures outlined in the contract signed by both parties.
Monetary Damages
When a tenant breaches the lease by not giving the required 60-day notice, the landlord may suffer financial losses, primarily lost rental income while the property sits vacant. Landlord-tenant laws generally permit landlords to seek monetary compensation, known as damages, to cover these direct losses.2Investopedia. Breach of Contract Explained: Types and Consequences
The calculation for damages typically focuses on the rent lost during the portion of the required notice period that the unit remained empty after the tenant departed unexpectedly. For example, if a tenant leaves without notice and the landlord takes 30 days to find a new renter, the landlord might seek 30 days’ worth of rent. Landlords may also incur related costs, such as unexpected advertising expenses. The aim of awarding damages is to compensate the landlord for actual financial harm resulting directly from the lack of notice.
Landlords, however, usually have a “duty to mitigate damages.” This legal principle requires them to make reasonable efforts to re-rent the property promptly once they are aware it has been vacated without proper notice. Reasonable efforts include advertising the vacancy and showing the unit. The amount of damages a landlord can recover may be reduced by the rent they could have collected by making these efforts. Therefore, the final damages often reflect the rent lost only during the time the property reasonably remained vacant, despite the landlord’s attempts to find a replacement tenant, up to the end of the required notice period.
Loss of Deposits
A security deposit, paid at the start of a lease, primarily safeguards the landlord against property damage beyond normal wear and tear or unpaid rent. State and local laws strictly regulate how these deposits can be used and mandate their return, minus documented deductions, within a specific timeframe after the tenant moves out.
Failing to give the required 60-day notice can affect the return of the security deposit. Because insufficient notice is a breach of the lease, landlords might be permitted, depending on the lease terms and local law, to use the deposit to cover costs arising directly from that breach. This most commonly includes unpaid rent for the days the unit was vacant during the required notice period, up to the deposit amount. Deductions generally must correspond to actual financial losses allowed by law, not serve merely as a penalty for the lack of notice unless explicitly permitted.
To legally withhold any part of the deposit, landlords must typically provide the tenant with a written, itemized list explaining each deduction within a legally set timeframe. This statement details the reasons, such as “unpaid rent for May 1-20 due to lack of notice.” If a landlord fails to follow these procedures, they might lose the right to make deductions, even if the tenant did not provide proper notice. Tenants should provide a forwarding address to receive the deposit balance and any itemized statement.
Court Proceedings
If a tenant leaves without providing the 60-day notice specified in the lease, the landlord may file a lawsuit to recover resulting financial losses. This action often takes place in small claims court, designed for disputes involving smaller monetary amounts. The landlord initiates the case by filing a complaint detailing the breach (failure to give notice) and the damages sought, such as lost rent.
The court then issues a summons that must be formally delivered to the tenant, notifying them of the lawsuit and the hearing date. The tenant has the right to respond and must appear in court. Failing to appear can lead to a default judgment in the landlord’s favor.
During the hearing, the landlord must present evidence to support their claim. This usually includes the lease showing the notice requirement, proof the tenant failed to comply, and documentation of the financial losses incurred, like lost rent and advertising costs. The landlord generally must also show they attempted to mitigate damages by trying to re-rent the property quickly.
After considering the evidence and arguments from both sides, the judge issues a ruling. If the landlord proves their case, the court may order the tenant to pay the documented damages. If the tenant fails to pay a judgment voluntarily, the landlord can pursue further legal actions, such as wage garnishment or asset seizure, to enforce the court’s order.
Consequences for Future Agreements
Leaving a rental without giving the contractually required 60-day notice can create difficulties beyond immediate financial penalties, potentially hindering future housing searches. Prospective landlords often screen applicants thoroughly, including checking their rental history.
This screening frequently involves contacting previous landlords. A former landlord might report that you vacated without the agreed-upon notice, which could signal unreliability to a potential new landlord seeking dependable tenants who follow lease terms.
Information about how your tenancy ended might also appear in specialized tenant screening reports used by landlords. While failure to give notice might not affect standard credit reports unless it leads to debt collection, it could be noted in reports focused on rental history. The Fair Credit Reporting Act (FCRA) governs these reports, giving consumers rights regarding accuracy and use.3Federal Trade Commission. What Tenant Background Screening Companies Need to Know About the Fair Credit Reporting Act Landlords using these reports generally need your permission and must inform you if they deny your application based on the report’s contents.
A rental history showing failure to provide proper notice could therefore become an obstacle. Prospective landlords might view it negatively, potentially resulting in application denial or demands for a larger deposit or a co-signer, even with good credit and income. Fulfilling all lease obligations, including notice requirements, helps maintain a positive rental history and facilitates smoother transitions between homes.
