Quick Overview
- There are three basic ways to terminate a lease: by mutual agreement between the tenant and the landlord, by notice of termination, or, in exceptional cases, by immediate termination.
- The quickest and least contentious option is usually to terminate the lease by mutual agreement, in which the tenant and landlord set out in writing the specific date of termination and the conditions for handing over the apartment.
- If the lease is for an indefinite term, the tenant may give notice to terminate it at any time without providing a reason. The typical notice period for a lease is three months and begins on the first day of the calendar month following the delivery of the notice.
- For a fixed-term lease, termination is possible only under the conditions specified by law or the lease agreement.
- Immediate termination of the lease without a notice period is possible only in the event of a serious breach of obligations by the other party.
- Notice of termination must always be in writing and properly served; otherwise, it may not be valid.
Do you want to terminate your lease but aren’t sure how to word it to ensure you’re legally protected? We’d be happy to draft it for you.
What are the ways to terminate a lease?
In practice, we often see that people only address terminating a lease when the situation has reached a crisis point. Typically, this involves a sudden move, conflicts with the landlord, or financial difficulties. It is precisely in these situations that mistakes arise, which can lead to an invalid notice of termination or unnecessary disputes.
Whether you’re planning to move, dealing with disagreements with your landlord, or need to leave the apartment early, it’s always best to choose the correct method for terminating the lease first. Otherwise, your notice to terminate the lease may be invalid, the notice period may begin later than you expect, or your landlord may demand additional rent from you.
If you find yourself in a situation where you suddenly need to move—perhaps for a new job—and need to terminate your current lease, you generally have several options. You may have an immediate termination clause agreed upon directly in the lease agreement for both parties, or you can negotiate the termination of the lease with the landlord. In the worst-case scenario, you will be unable to reach an agreement with the landlord. If this happens, the only option is for the tenant to terminate the lease immediately.
So let’s take a closer look at how and under what conditions you can terminate a lease directly under the law—whether you’re a tenant or a landlord who finds yourself in a situation where a non-paying tenant is occupying your apartment, and you’ve been dealing with the truly unpleasant situation — how to evict a tenant from the apartment —and their rent arrears are beginning to reach astronomical heights. But we’ll also touch on less common cases beyond just tenant issues, such as terminating a lease for non-residential space or, for example, terminating a land lease agreement.
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Termination of an Apartment Lease: What Must It Include and How Should It Be Served?
The Civil Code addresses apartment lease termination and sets forth relatively clear rules for it. A notice of termination is not a request to terminate the lease agreement; it does not require any approval or consent from the other party. It is a unilateral legal act. For this reason, however, great emphasis is placed on its form. First and foremost, it must be in writing; a lease cannot be terminated over the phone or verbally. The notice must include information about both contracting parties and the identification of the apartment or building. We recommend sending it by certified mail or with a return receipt so that you can be sure it was delivered.
However, in terms of wording, it is also very important to distinguish whether you have a fixed-term lease or, conversely, an indefinite-term lease. In general, though, a lease termination notice might look like this:
Notice of Termination of Lease – Template
[Your Name]
[Your Contact Information]
[Address of the rented property]
[Lease Agreement Number]
[Date]
Dear [Landlord’s Name],
I am hereby giving notice of termination of the lease for the property I rented from you on [date the lease was signed], due to a change in circumstances that were unforeseeable at the time the lease was signed and have significantly affected my circumstances and situation. Specifically, these include [briefly describe the changes in circumstances, e.g., job loss, change in personal circumstances, financial or health issues, etc.].
Due to these changed circumstances, it is impossible for me to continue renting the property under the original terms of the lease agreement. In accordance with Section 2287 of the Civil Code, I hereby give notice of termination of the lease XXX months/days in advance, effective as of XXX (the date following receipt of this notice).
In [city] on [date].
[Your signature]
Termination of an Indefinite-Term Lease
As a tenant, you may terminate an indefinite-term lease at any time and without giving a reason, provided you give three months’ notice. The notice period begins on the first day of the calendar month following the delivery of the notice to the landlord. But what about a fixed-term lease?
The most common mistake we encounter is an incorrectly stated start date for the notice period or a failure to provide written notice. People often assume that the notice period begins immediately upon delivery, but this is not in accordance with the law.
Termination of a Fixed-Term Lease
A lease agreement entered into for a specific term naturally ends upon its expiration. Unless an earlier termination is specifically stipulated in the agreement, you cannot terminate the lease without giving a reason, as is the case with the open-ended lease agreement described above. Therefore, neither party can terminate the lease arbitrarily. The most common reason for terminating a lease is a change in circumstances. You might be moving to another city, or you might have health issues that make it impossible for you to continue renting, and so on.
Generally, this is addressed by the Civil Code, which states that a tenant may terminate a lease before the agreed-upon term ifif the circumstances on which the parties relied when entering into the lease agreement have changed to such an extent that the tenant cannot reasonably be expected to continue the lease.
However, this can easily lead to a dispute with your landlord, because the law does not clearly define what should be considered a “change in circumstances.”
Are you planning to give notice to terminate your apartment lease and aren’t sure if you’ve correctly stated the reason, date, and notice period? We’ll draft a notice tailored to your specific situation to ensure it’s valid and effective.
Termination Due to a Breach of the Lease Terms by the Landlord
It may happen that the landlord violates the terms of the lease agreement, leading the tenant to terminate the fixed-term lease early. For example, if repairs to the apartment are necessary and must be carried out to such an extent that the apartment cannot be used. Or if the landlord breaches their obligations in a particularly serious manner, thereby causing significant harm to the tenant.
The tenant may also terminate the lease if the use of the apartment is prevented by a provision of law or a decision by a public authority issued pursuant to law. There are several such legally established grounds. These typically include situations where using the apartment would be dangerous (chemical contamination, structural damage to the building, etc.).
We know from experience that notices of termination issued by landlords are often invalid. They lack a specific reason or the reason is not sufficiently described. In such cases, the tenant may defend themselves and challenge the notice of termination.
What rights does a landlord have when terminating a fixed-term lease?
A landlord may terminate a fixed-term lease only for reasons specified by law, namely:
- if the tenant grossly violates an obligation arising from the lease, such as failing to pay rent,
- if the tenant is convicted of an intentional crime committed against the landlord or a member of the landlord’s household, or against a person residing in the building where the tenant’s apartment is located, or against another person’s property located in that building,
- if the apartment must be vacated for reasons of public interest, such as if it must be demolished to make way for a city ring road.
The law protects tenants—as the weaker party to the contract—for these specific reasons.
When can a landlord terminate an open-ended lease?
If, on the other hand, the landlord wishes to terminate an open-ended lease, they may do so only for legal reasons. Specifically, for the same reasons as with a fixed-term lease, and additionally if they wish to move into the apartment themselves or need it for their spouse in the event of a divorce.
This also applies if the landlord needs the apartment for relatives, such as children who have started college. However, the relatives must actually move into the apartment. A fabricated need could lead to a claim for damages and even a challenge to the validity of the termination.
Have you received a notice of termination of your lease and are unsure whether it is valid? Have it reviewed by an attorney. We will help you assess its validity and suggest the next steps.
Termination of a Lease for Commercial Premises
A lease for commercial premises may be terminated primarily for reasons specified in the lease agreement; therefore, it is very important for both parties to exercise due diligence when negotiating the agreement itself. However, if your lease agreement does not specify the grounds for terminating a lease of non-residential commercial space, the statutory conditions apply. This is similar to the case of a residential lease.
The law also allows the tenant of commercial space to terminate a fixed-term lease, for example, if they are no longer eligible to conduct business activities. Legal regulations may change, and as a result, the tenant may no longer be permitted to use the space for business purposes as specified in the contract.
Both parties may seek to terminate the lease agreement due to a so-called material change in circumstances. This change can be almost anything. We therefore recommend specifying the exclusive grounds for terminating a lease of non-residential premises directly in the lease agreement.
What Should You Do When Your Apartment Lease Ends?
Regardless of how your apartment lease ends, you are required to return the apartment to the landlord. How should both parties proceed with this final step? The tenant is required to return the apartment to the landlord on the day the lease ends. If the tenant fails to do so, the landlord is entitled to compensation equal to the agreed-upon rent. This entitlement continues for as long as the tenant has not returned the apartment.
In practice, disputes often arise regarding the condition of the apartment and any damage. Although the law does not require anyone to draw up a handover report when returning the apartment to the landlord, we recommend preparing such a report. The report should include a description of the condition in which the apartment is being returned, readings from the electricity, water, and gas meters (if installed), and a list of the apartment’s furnishings being returned along with a description of their condition.
There is also nothing preventing the parties from documenting the condition of the apartment in detail with photographs at the time of handover. As the landlord, don’t forget to provide the tenant with a statement of utility charges related to the lease and to refund the security deposit .
Summary
A lease may beterminated by mutual agreement with the landlord, by notice of termination, or, in exceptional cases, by immediate termination of the lease. Termination by mutual agreement is usually the simplest option, as the parties themselves determine the termination date and the conditions for handing over the apartment. If an agreement cannot be reached, the next step is to give notice to terminate the lease. For an indefinite-term lease, the tenant may generally give notice at any time without stating a reason, though the standard notice period for terminating a lease is three months. For a fixed-term lease, a statutory or contractual reason is required.
Frequently Asked Questions
When does the notice period for a lease begin?
The notice period does not begin on the date the notice is delivered, but rather on the first day of the calendar month following its delivery.
Does a lease termination notice have to be in writing?
Yes, notice of termination of an apartment lease must be in writing. If it is given in any other form, it is not valid.
When is it possible to terminate a lease immediately without a notice period?
Only if the other party seriously breaches its obligations. Typically, this refers to situations where it would be unreasonable to expect the lease to continue.
What must be included in the final utility bill after the lease ends?
The bill must include the actual costs for individual services and a summary of advance payments made, so that any overpayment or underpayment can be verified.
What happens if a tenant does not vacate the apartment when the lease ends?
The landlord may seek eviction through the courts and subsequently enforce the judgment if the tenant does not leave voluntarily.
Is it better to terminate a lease by mutual agreement or by giving notice?
If the tenant and landlord can reach an agreement, it is usually best to terminate the lease by mutual agreement. In the agreement, they can specify the exact date the lease ends as well as the terms for handing over the apartment. Termination of an apartment lease is typically pursued only when an agreement cannot be reached.
What is the notice period for terminating an apartment lease?
For an indefinite-term lease, the notice period for terminating an apartment lease is typically three months. It begins on the first day of the calendar month following the delivery of the notice to the landlord.
