Guide To Terminate A Tenancy Agreement

There are always times when agreements fail. It might be a work contract, an employment agreement or a tenancy arrangement. Some problems are unavoidable. Some issues are part of running a tenancy business, or are expected with renters and tenants. It would be great to always have the best tenants who have no problems, pay on time, and look after your property, but there are always some that are a nuisance and ruin it for the rest. 

A fixed-term rental arrangement implies your renters are obligated to pay rent for the whole duration.  In any case, life has a way of throwing curveballs — for both landlords and renters — and it’s beneficial for both to be aware of their choices for getting out of a lease before its term is up.

The signing of a tenancy agreement creates a legally enforceable contract between the landlord and renter. In most circumstances, this implies that your renters have the right to remain in their current place until the lease lapses. Yet, there are several exceptions when it would be feasible to terminate a lease sooner.

Landlords should use the Section 21 Notice to alert renters of their intent to maintain rental property and to remind them that non compliance with the prescribed lease terms may result in legal action.  If landlords issue occupants a Section 21 Notice, they must leave the premises within 2 months. If they don’t go by the time, landlords might have to ask the local court for a Possession Order or the court bailiff for assistance.

A landlord may only legally demand ownership of a rental property during the set term if the cause is covered under the Housing Act of 1988.

Reasons for this include:

1. The renters are in overdue with their repayments.

2. The renters have exploited the property for illicit activities, such as drug dealing.

The Tenant Fees Act specifies the fees and charges a landlord may and may not charge its renters. Allowing for early termination fees means you may charge the cost to renters who want to terminate their rental before its expiry date. Landlords are only permitted to bill them for the real expenditures that you have incurred as a direct consequence of their departure from the property. When a new tenant comes in and starts paying rent, a renter’s responsibility to pay rent mainly ends as well.