Signing a contract stating that you’ll be occupying a certain property for a specific period is an official, legally binding commitment. This means that you have to pay rent and maintain the property throughout your stay.
Then again, life doesn’t always go as planned, and some situations could drive you to depart abruptly.
In any case, you must be aware of the legal and financial consequences highlighted below.
What Is a Fixed-Term Clause?
It’s an agreement whereby a tenant commits to renting a property for an agreed-upon duration, usually spanning a year. It could also be several months or years, depending on the final arrangements you make with the landlord.
The renter and property owner are both expected to respect the conditions of the contract during this period. This mainly entails paying the rent on time and maintaining the property regularly.
This condition locks you in for a specified period, unlike a rolling tenancy, where you can leave at any moment after giving notice.
With a fixed lease, leaving the house before the expected lease termination date involves more than simply giving notice, packing everything, and saying goodbye. There are particular processes you must follow to avoid penalties or additional expenses.
Legal Options for Ending a Fixed-Term Tenancy Early
Although it’s not impossible, breaking a fixed-term tenancy does call for some preparation. These are a few of the legal choices you should consider.
1. Check for a Break Clause
Examine your tenancy agreement first to see whether it has a break provision.
Usually, after a specified amount of time, a break clause allows the renter or the lessor to terminate the tenancy. That is, of course, after certain requirements are met.
You should strictly adhere to the conditions of your contract if it contains a break provision to avoid fines. This often stipulates providing a set notice period and making sure the rent is paid up until the designated termination date.
2. Mutual Agreement
Coming to an understanding with your landlord will also help you terminate a fixed-term tenancy at an earlier time.
If they are receptive to it, they could allow you to vacate the premises before the contract expires, particularly if they can locate a new tenant quickly enough.
Any agreement should be documented in writing to prevent misinterpretation later on.
Sometimes, landlords charge a little extra to offset the lost rent during the period the property is unoccupied or the cost of locating a new renter.
Apart from that, you’ll still be in charge of paying rent till a new tenant moves in. You’ll also have to keep the property in good shape. Using a tenancy cleaning service will help guarantee that it’s ready for the next renters.
3. Find a Replacement Tenant
If your letting agent allows it, you could be able to locate a replacement tenant to take over your lease.
This is known as a tenancy transfer or assignment. Under the tenancy agreement, the new tenant would cover your obligations, and you would be free to go without incurring more expenses.
Before choosing a replacement renter, though, you should get permission from your landlord, as not all of them accept tenancy transfers.
Additionally, you should make sure the new tenant handles all the necessary documents correctly and passes the regular property inspections.
4. Uninhabitable Property
On rare occasions, if a tenant finds a property uninhabitable, they could be entitled to depart early.
Serious damage from a fire, plumbing emergency, or any other incident that renders the property unfit for occupancy could cause this.
You could be able to end the tenancy without any fines under these circumstances, but you’ll have to show proof that the house is no longer safe or usable.
If you’re not sure about your rights, speak with a renters’ association or legal adviser. They’ll help you navigate this situation properly with their expert insight.
Potential Costs of Breaking a Fixed-Term Tenancy
Breaking a fixed-term tenancy can be expensive, particularly in cases lacking a break provision or mutual consent. Here are some of the possible costs you could incur.
1. Rent Until a New Tenant Is Found
Terminating a lease early without a break clause makes you liable for rent throughout the stipulated period or until the landlord finds another tenant.
Negotiating with your letting agent and helping them find a new renter can relieve you of this burden.
2. Early Termination Fees
Some landlords include fees for early termination in the leasing agreement to cover additional expenses should the house remain unoccupied for some time.
This includes the costs of locating a new tenant or the abrupt loss of a regular income. The conditions of your contract will determine the pay-off amount.
3. Deposit Deductions
You still have to leave the property in good shape, even if you have your landlord’s approval to depart early.
Otherwise, they could use your collateral to repair damages that have occurred during your tenancy. Moreover, if you fail to tidy up properly, they will deduct part of your deposit to hire expert cleaners.
Having a professional cleaning staff spruce up the place increases your chances of full reimbursement. They’ll tackle everything, from the carpets and oven to the windows and light fixtures, leaving no stone unturned.
4. Loss of Holding Deposit
You could lose the holding deposit you paid to reserve the property if you breach the contract early.
This deposit is usually non-refundable. However, it’s worth talking with your landlord to find out whether there’s any chance of a partial refund. This is usually possible if the matter is handled amicably.
How to Leave the Property in Good Condition
To break a tenancy early without any complications, you must leave the place in the best possible state.
Before returning your money, your letting agent will check the property, and anything that’s not up to their standards could cause deductions.
A tenancy cleaning service will enable you to meet their requirements. These are some of the main areas they’ll concentrate on:
- Floor and carpet. To eliminate stains and filth, cleaners typically steam-clean carpets. As for hard floors, they’ll mop and hoover them thoroughly.
- Kitchen appliances. When tenants leave, ovens, refrigerators, and microwaves are often left in utter disarray. A reliable cleaning staff will leave these appliances sparkling inside and out.
- Bathroom. Specialised cleaners will guarantee that the bathroom is squeaky clean. They’ll scrub the tiles, polish hard surfaces, and descale the taps and showerheads.
- Windows. The house will look brilliant and well-kept once they’re done with the windows. They’ll even go over the frames and sills, which are often overlooked.
Using a local cleaning service will enable you to hand over the keys, knowing the property is in the best possible shape for the next renter. This, in turn, prevents any conflicts with your landlord.
Conclusion
Knowing your legal options and the possible expenses involved enables you to break a fixed-term tenancy early without incurring hefty fines.
The worst part about breaking a lease is looking for a break clause and haggling with your landlord. Still, there are ways to handle these unsavoury matters without much hassle.
Your best bet is always good communication. You’ll be more likely to come to an understanding that suits both sides if you’re open about your circumstances and ready to cooperate.
Moreover, by making sure the property is kept in top shape, you’ll pass the last inspection without a hitch.
