How to end the lease without disagreements and complications with the landlord?

What are the ways to terminate the lease?

If you find yourself in a situation where you suddenly need to move, for example to a new job, and you need to end your current tenancy, then you basically have a few options. You can have an immediate notice of termination of the lease agreed directly in the property lease for both parties, or you can agree with the landlord to end the lease. In the last and least pleasant case, you will not be able to reach an agreement with the landlord. If such a situation arises, the only option is to terminate the housing by immediate termination of the lease by the tenant.

Let’s take a closer look at how and under what conditions you can terminate a lease contract directly by law if you are a tenant, or even if you are a landlord and you find yourself in a situation where a non-paying tenant is occupying your flat and you have been dealing with a really unpleasant situation – how to evict the tenant from the flat – for a long time and the rent owed by the tenant is reaching astronomical heights. But we will also touch on less common cases than just tenant problems, namely termination of a lease of non-residential premises or perhaps termination of a ground lease.

Immediate termination of the lease and what must the notice for the apartment contain?

The Civil Code has the notice of termination of tenancy in mind and lays down quite clear and detailed rules for it. A notice of termination is not a request to terminate the lease, it does not presuppose any compliance or consent of the other party. It is a unilateral legal act. That is why it is, of course, emphasised in terms of its form. First and foremost, it must be in writing; the lease cannot be terminated over the phone or orally. The notice must contain information about both parties and the name of the flat or house. We recommend that you send it by registered or recorded delivery letter to make sure it has been delivered.

However, even in terms of wording, it is very important to distinguish whether you have a fixed-term tenancy or an open-ended tenancy. In general, however, a notice of termination of tenancy could look like this:

Notice of lease – model

[Your name]
[Your contact]
[Address of the rented property]
[Lease agreement number]

[Date]

Dear [name of landlord],

i hereby give you notice of termination of the lease of the property I have rented from you on [date of agreement] due to a change in circumstances which were unforeseeable at the time of entering into the agreement and which have significantly affected my options and circumstances. Specifically, [briefly describe the change in circumstances, e.g. loss of employment, change in personal circumstances, economic or health problems, etc.].

These changed circumstances make it impossible for me to continue to rent the property under the original terms of the agreement. In accordance with Section 2287 of the Civil Code, I hereby give XXX months/days’ notice of termination of the tenancy, commencing on XXX (the date following receipt of this notice).

At [place] on [date].

[Your signature]

Termination of lease for an indefinite period

As a tenant, you can terminate your lease for an indefinite period at any time and without giving any reason with three months’ notice. The notice period starts on the first day of the calendar month following the date of delivery of the notice to the landlord. But what about fixed-term tenancies?

Termination of a fixed-term lease

A tenancy agreement concluded for a specific period of time naturally ends at its expiry. Unless you have agreed to an earlier termination directly in the contract, you cannot terminate the lease without giving a reason, as is the case with the indefinite lease described above. Therefore, neither party can terminate the lease just like that. The most common reason for terminating a lease is a change in circumstances. You may be moving to another city, health issues that make it impossible for you to continue the lease, and so on.

This is generally addressed by the Civil Code, which says that a tenant may terminate the lease of an apartment before the agreed term if the circumstances on which the parties based their obligation under the lease change to the extent that the tenant cannot reasonably be required to continue the lease.

However, you can easily get into a dispute with the landlord here, as the law does not clearly define what should be considered as such reasons for a change in circumstances.

Termination for violation of rules by the landlord

It may happen that the landlord breaks the rules of the agreed lease, leading the tenant to terminate the fixed-term lease early. For example, if repairs to the flat are necessary and they must be carried out to such an extent that the flat cannot be used. Or if the landlord breaches its obligations in a particularly serious way, causing significant harm to the tenant.

The tenant may also terminate the tenancy if the use of the apartment is prevented by a provision of law or a decision of a public authority issued on the basis of law. There are several such statutory grounds. These may typically be situations where the use of the apartment would be dangerous (chemical contamination, disturbed statics of the building, etc.).

What rights does the landlord have when giving notice for a fixed term?

The landlord can only terminate a fixed-term contract for the reasons provided by law, i.e.:

• if the tenant grossly breaches his or her obligations under the lease, for example, by stopping paying rent,
• if the tenant is convicted of a deliberate crime committed against the landlord or a member of the tenant’s household, or against a person who lives in the house where the tenant’s flat is located, or against someone else’s property located in the house,
• where the flat is to be vacated for reasons of public interest, for example, where it has to be demolished to make way for a ring road.

The law protects the tenant as the weaker party to the contract for these precise reasons.

When can the landlord terminate your permanent contract?

If the landlord wants to terminate the permanent contract, he can only do sofor legal reasons. Specifically, for the same reasons as in the case of a fixed-term contract, and in addition if he wants to move into the flat himself or wants it for his spouse in the event of a divorce.

This also applies if he needs it for his relatives, e.g. children who have started university. However, the relatives should actually move into the flat. A fake need may lead to a claim for damages and generally call into question the validity of such a statement.

Termination of a lease of premises used for business purposes

A lease of business premises can be terminated, particularly for reasons that you have agreed in the lease, so care on both sides in negotiating the lease itself is very important. However, if you do not have the exact grounds for termination of the lease of non-residential business premises set out in the contract, the statutory conditions will apply. This is similar to the case of a lease of a flat.

The law also allows a tenant of a space used for business to terminate a fixed-term lease if, for example, he or she ceases to be fit to carry on the business. Legislation may change and the tenant may not be able to use the premises for business as intended in the contract.

Both parties may want to terminate the lease because of a so-called material change of circumstances. This change can be almost anything. We therefore recommend that you set out the exclusive grounds for termination of the lease of non-residential premises directly in the contract.

How to proceed after the end of the lease?

However you end your tenancy, it is your responsibility to hand over the apartment to the landlord. How should both parties proceed with this final step? The tenant must hand over the flat to the landlord on the day the tenancy ends. The landlord is entitled to compensation against the tenant in the amount of the agreed rent if this is not done. This shall continue for as long as the tenant fails to hand over the apartment.

Although the law does not oblige anyone to draw up a handover report on the return of the flat to the landlord, we recommend that a handover report is drawn up. The protocol should include a description of the condition in which the apartment is being handed over, details of the status of the electricity, water and gas meters, if installed, and a list of the equipment being handed over and a description of its condition.

The Parties are also not precluded from recording the condition of the apartment at the time of handover in detail by means of photographic documentation. As the landlord, do not forget to give the tenant a bill for the services connected with the lease and for the return of the rent deposit .

Summary

Termination of the lease is possible by agreement with the landlord, by notice or, as a last resort, by immediate termination in the event of a serious breach of duty. An open-ended lease can be terminated at any time with three months’ notice, whereas a fixed-term lease requires a statutory reason, such as a material change in circumstances. The landlord can only terminate the contract for statutory reasons, such as non-payment of rent or the need for the flat for self-occupation.

For non-residential premises, similar rules apply, with early termination depending on contractual or statutory conditions. At the end of the lease, the tenant must hand over the apartment, preferably with a handover report and photo documentation. The notice must be given in writing and delivered by registered mail. The best solution is always an agreement between the parties.