Lease Termination Fee

A fee charged to a tenant who breaks the lease early. Typically 1-2 months rent. The fee compensates the landlord for turnover costs and lost rent during the re-leasing period. The fee must be specified in the lease to be enforceable. Tennessee does require the landlord to make reasonable efforts to re-rent the unit. If the unit re-rents quickly, keeping the full termination fee on top of rent from the new tenant may not hold up.