Chapters of the article
What does general rent mean?
General rent does not refer to renting an apartment, but to renting something else – a commercial space, a car, skis, a luxury handbag or a vintage costume. Just anything that you only want to use for a certain period of time and are not necessarily interested in owning. Termination of a lease can be achieved in a variety of ways, typically by notice, rescission or simply by the passage of time. A lease is also terminated by death. What are the pitfalls associated with each option and which one should I choose?
Tip: Interested in ending your lease on a property? For example, are you about to move out of the apartment you have rented and need to terminate the lease as soon as possible? Or do you want to evict a problem tenant from your apartment? You need to be careful, as disputes often accompany the termination of a lease. We write more about this in our separate article.
From law practice: Termination of a lease agreement due to interior modifications and change of the purpose of the lease without the landlord’s consent
Mr. Roman contacted us with a request for assistance. He leased his warehouse to his long-standing business partner. However, the cooperation began to falter over time, culminating when Mr Roman discovered that the tenant had converted the warehouse into a shop without even informing him. A bitter argument and a search for a legal solution ensued. Mr Roman wanted to get the lease terminated immediately and asked for our help.
We explained to Mr. Roman that the law clearly states that the tenant needs the landlord’s consent to modify the leased property. Moreover, such consent must precede the modifications. While there is nothing to prevent the parties from entering into an agreement after making alterations without the landlord’s consent, there is nothing to prevent the parties from entering into an agreement that would somehow cover or heal the deficiency. In this case, however, that was precluded.
However, consent to the alterations was demonstrably not given by the tenant – for in a written agreement, the consent given must also be in writing, no nodding over coffee is enough. This was thus a classic termination ground. The tenant had to leave the premises, even if unwillingly, and restore them to their original condition at his own expense.
What are the most common ways to end a lease?
- agreement to terminate the lease
- unilateral notice
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We provide a complete package of services for both landlords and tenants. We will draft or review all lease/rental contracts, help with extension or termination of lease, and make sure everything takes place smoothly and without legal complications. You’re also welcome to pay after services are provided.
Form and content of the statement
A statement may also be given only orally. This also applies to a written tenancy agreement. Unless the parties have expressly stipulated the written form of the notice directly in the contract. However, we recommend that the content of the notice is always documented in writing, at least in an e-mail or other appropriate means.
The following must be clear from the notice: Who is giving the notice, when and to whom, and to what contract.
The need to justify the termination depends primarily on whether the lease is being terminated for a reason specified by law (or by the parties) or whether it is a situation where it can be terminated without cause. If the former, we recommend that the reason for termination is clearly stated.
It is always possible to terminate a lease concluded for an indefinite period without stating a reason. Logically, such a termination does not have to be justified, although there is nothing to prevent the party terminating the lease from stating the reason for its decision.
Termination of a lease for an indefinite period
Probably the most common case of termination is the termination of a lease concluded for an indefinite period. The law provides for a notice period of one month if the subject of the lease is movable or three months if the subject of the lease is immovable.
However, by mutual agreement, the lessor and the lessee may shorten or extend the notice period or negotiate the right to terminate the lease without notice. Similarly, the possibility to terminate the lease can be contractually limited to certain predefined reasons.
Termination of a fixed-term lease
A tenancy agreement concluded for a specific period naturally ends at its expiry. However, it can be terminated earlier than the agreed lease term if such an option is expressly provided for in the contract. However, this must be agreed for both parties, not just the landlord.
Unless expressly agreed by the parties, a fixed-term lease, unlike a lease of indefinite duration , cannot be terminated for any reason or without giving any reason. The law does, however, provide for certain grounds for termination of the lease. However, the parties may expand or narrow them.
Do you need advice on concluding or terminating a lease? We will be happy to advise you and help you with the necessary documents.
Tip: When you decide to rent your house or apartment for a longer period of time, a fixed-term contract may be a better solution in certain situations. What are the benefits of entering into a longer or shorter term agreement with a tenant? What is the longest period for which a tenancy agreement can be concluded? We will reveal all the ins and outs of a fixed-term tenancy agreement in our separate article.