Warning: Legal Action

• Apartment landlords have the legal right to file a lawsuit in an attempt to recoup loss income. If found guilty by the courts, you're required to pay off the remaining lease balance.
  
  

Effects of Breach of Contract

• Breaking an apartment lease is a breach of contract. Landlords may report this information to the three major credit bureaus. Having this information on your personal file can reduce your credit rating.
  
  

Qualifying for Mortgage or New Apartment

• A judgment due to non-payment of the lease balance or a breach of contract notation on your credit file can scare potential landlords or mortgage companies. This information will likely stay on your report for up to seven years. During this time, it may be increasingly difficult to acquire a new residence.