Can My Tenant End A Tenancy Agreement Early?
So, your tenant wants to vacate your property earlier than the dates agreed in the Tenancy Agreement – what are your rights?
Can the tenant leave during the tenancy?
If both parties agree
If both landlord and tenant agrees to terminate the tenancy early, than that’s perfectly legal and valid. This is known as ‘Surrender’. There are two ways to surrender a tenancy.
- Surrender by Operation of the Law – this is when the tenant gives up their occupation of the property to the landlord and the landlord accepting this. This usually involves the tenant handing over the property’s keys to the landlord accepting that the agreement is over and that they now have possession.
- Declaration of Surrender – this is when the tenant signs a Surrender of Tenancy Letter. This written document then acts as proof that the tenant has given up possession of the property to the landlord.
Ending a fixed term tenancy
If the tenant is in the middle of a fixed term, they can only terminate the tenancy early if the landlord agrees, or if there is a “break clause” in the Tenancy Agreement.
If the agreement does not mention a break clause and the landlord refuses to accept the early termination, then the tenant will be contractually obliged to pay you the rent for the entire length of the fixed term.
Ending a periodic agreement
If the tenancy has lapsed into a Periodic Tenancy (rolling from week to week or month to month), a tenant will typically have to give at least one rental period of notice. So, if the tenant pays rent weekly and the tenancy is periodic, they only need to provide one week notice. If they pay monthly, they will need to provide one month notice.
A tenant can end a periodic tenancy be issuing a valid notice to quit to the landlord. Once the notice expires then the tenant’s agreement will have ended.
What are the landlords’ options?
- Continue to enforce payments from the tenant, as the tenant is liable until the tenancy is legally terminated
- The tenant can provide a new tenant BUT the tenant has to be acceptable to you, the landlord. Until that time the tenant is completely liable
- The landlord may choose to break the tenancy by suggesting that a financial settlement be made i.e. if they owe 7 months – you will settle for 4 months
- The landlord can find a new tenant, and hold the tenant liable for the costs of finding the tenant (advertising, agency fees etc).
- If at any point the landlord approves the actions of the tenant vacating early, then they can legally stop paying the rent.
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