Key takeaways
- Many renters assume they must wait out their lease, but most leases include an early termination option.
- Read the lease closely for termination fees, concessions you may owe back, and notice requirements.
- Time your notice to your closing date, with a cushion in case the closing shifts.
- Monarch's Lease Buyout Program helps cover the early termination fee at closing for qualifying purchases.
A lot of people touring model homes are renting today, and many of them leave thinking they need to wait until their lease ends to buy. In many cases, you don't. Here is how breaking a lease early works when you're buying new construction, and how Monarch helps.
Read the lease first
Every lease is different, so the first step is reading yours carefully. Look for:
- The early termination or reletting fee. This is the amount you owe to end the lease early.
- Concessions you may owe back. If you received free rent or a move-in special, the lease may require you to repay it if you leave early.
- Blank or unclear termination terms. If the termination section is left blank, ending early may mean owing the remaining rent. That is worth clarifying with your property manager before you commit.
- Notice requirements. Most leases require written notice a set number of days before you move out.
Your property manager is the only one who can confirm the exact amount you'll owe, so get the number from them directly.
Time your notice to your closing
The goal is to move straight from your apartment into your new home without paying for months you don't need, and without being left with nowhere to live if closing slips. A good rule of thumb is to give notice about 45 days ahead of an end-of-month closing, which leaves roughly two weeks of cushion. You'll keep paying your normal rent until you move out.
How Monarch's Lease Buyout Program works
When you buy new construction with Monarch, our Lease Buyout Program helps cover your early termination fee. Here is the general process:
- You share your lease with us, and we read it with you to find the termination fee and any concessions owed back.
- You sign your new home contract and give notice at the right time.
- At closing, you receive a check for the termination fee to pay your apartment directly.
We have never turned a lease buyout away because of the size of the fee or the time left on the lease. Program terms apply, so ask me how it would work for your specific home and lease.
Is now the right time?
If your rent is close to what a new home payment would be, it is worth running the numbers. With builder incentives and help covering your lease break, buying sooner may cost less than you expect.
Common questions
Can I break my lease to buy a house in Texas?
Many Texas leases include an early termination option with a fee. Read your lease and confirm the exact amount and notice requirements with your property manager.
When should I give notice on my apartment if I'm buying new construction?
A common approach is about 45 days ahead of an end-of-month closing, which leaves roughly two weeks of cushion if closing shifts.
What is the Monarch Lease Buyout Program?
It is a Monarch Real Estate & Ranch program that helps cover a renter's early lease termination fee at closing when they buy new construction with Monarch. Program terms apply.
About the author
Angeline Clark is the broker/owner of Monarch Real Estate & Ranch and one of Howard Hughes' top Bridgeland producers three years running. She specializes in new construction and master-planned communities across Cypress and northwest Houston.