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Generally, it is difficult to end a tenancy agreement early, although this is easier in the case of a tenancy for an indefinite term. To end a tenancy early, you must reach an agreement with your landlord - simply returning the keys does not end the tenancy. Even if you are no longer using the home, you are still obligated to pay rent until the tenancy ends. Always check the termination options before signing an agreement and it may be worth negotiating the possibility of early termination. Additionally, it’s worth finding out what is stipulated in the Tenant Protection Act and whether your agreement falls under the regulations.
Besides checking the notice period, it’s important to verify if the termination requires justification. The landlord may terminate an indefinite tenancy, but only when they intend to live in the home apartment themselves. If the landlord communicates a rent increase and you as the tenant do not accept it, this counts as termination; the notice period in this case is three months and the existing rent continues to apply.
If the rented property has become uninhabitable due to a sudden event, you may terminate the tenancy immediately. However, it’s always good practice to talk to the landlord first. In the case of a gas explosion in the property, for example home insurance may cover a few days’ stay in a hotel. In the case of home insurance, the landlord is the insured party, which is why getting in touch with them to discuss your options is important.
A mutual agreement is essentially a contract that stipulates the termination date and conditions , including which payments the tenant needs to settle, and what happens to the deposit. The landlord and tenant can agree to end the tenancy on a specific day or that the tenant will pay rent until a replacement tenant is found. There are no restrictions on conditions - both the landlord and tenant must agree on them and document the terms, and sign the document.
Tenancies are generally terminated in the same form they were entered into, but even if the tenancy was agreed orally, it’s wise to terminate it in writing with confirmation of all terms and dates. The notice period for tenancies for an indefinite term is three months, but the agreement may stipulate the notice period, for example, one month.
If there is no mutual agreement and it is a unilateral termination, it must be documented that the other party received the termination notice. The simplest way is to send the document by registered mail with confirmation of receipt. Alternatively, the termination can be given in person, in which case two copies are needed, with a note confirming “Received on [date]” with the recipient’s signature.
These documents are essential. The landlord should have complete documentation of the tenancy, detailing the agreement’s start and end dates. For both parties, documentation is important to confirm that all obligations are paid, and that there are no outstanding charges or issues. There is no requirement for the termination of an occasional lease agreement to be reported to the tax office; only a new lease must . If a be reported immediately after it’s signed and the apartment is let to a new tenant.
Unfortunately, it is not always as easy as signing a mutual agreement if the landlord or tenant doesn’t wish to end the tenancy. What can be done in such situations?
A fixed-term tenancy generally does not allow early termination, similarly to occasional and institutional leases. The notice periods provided in the Tenant Protection Act apply to indefinite tenancies and are as follows: three months if the tenant terminates the tenancy (without the need for justification), and three months or even three years if the landlord terminates the tenancy (justification is required).
As the tenant, you can propose a replacement, but you must terminate your own tenancy, and the new tenant must sign a new one.
The landlord wanting to sell the property is not a valid reason for terminating the tenancy; the new owner would take over the tenancy and can offer new terms.
We strongly recommend seeking an agreement. Lack of a resolution may give you more time to find an alternative property, but on the flipside you will continue paying rent. If an agreement cannot be reached, you may need to explore legal routes to resolve the issue. This process can be both time-consuming and costly. Seeking advice from a legal professional can offer clarity on your rights and available options in such circumstances.
The content on the simpl.rent website reflects the views of the authors and does not constitute legal advice or legal opinions, nor can it serve as a substitute for them. Please note that each case should be treated individually, taking into account the accompanying circumstances. To determine the legal status in an individual case, we encourage you to seek professional legal assistance.
