How to terminate a rental agreement?
Tenancy agreements usually specify a duration of one year for residential tenancies, which can be extended up to a maximum of five years, depending on current legislation. However, sometimes both the tenant and the landlord may wish to end the lease earlier than planned. How can this be done in compliance with current regulations?
Valid grounds for terminating a tenancy agreement:
- Landlord's need: The landlord can only terminate the lease if he needs the property for himself or his immediate family members. Two months' notice must be given to the tenant.
- Sale of the Property: Putting the property up for sale is not sufficient reason to terminate the lease, unless the lease is not registered.
- Tenant Default: If the tenant breaches the obligations of the lease, the landlord can terminate the lease, but must do so through court proceedings.
Termination of the Lease:
- The tenant must stay for at least six months before the end of the lease.
- If an early termination penalty was agreed in the lease, the tenant must pay it. This penalty cannot be more than one month's rent for each remaining year.
- The rent deposit is used to cover damages to the property and may be partially withheld if there are outstanding utility bills at the end of the lease.
Make sure that all details are recorded in the lease termination document to avoid future disputes.
