Termination of a rental agreement

The notice of termination must, first and foremost, be in writing. The rent may not be terminated by telephone or solely in person. The notice must also clearly state from whom, when and to whom is the notice given. Depending on whether the rent is terminated for any of the reasons stipulated by law or agreed upon by the contracting parties, the parties may have to justify the notice (as opposed to terminating it without a reason). If the notice must be reasoned, the reason for termination must be clearly stated. Further conditions under which rent can be terminated, whether by the landlord or the tenant, depend in particular on whether the contract is concluded for a definite or indefinite period.

Termination of a fixed-term contract

A rent agreement concluded for a specific period naturally ends upon its expiration. However, a fixed-term rent may also be terminated earlier than in the agreed term, provided that such a possibility is stated expressly in the agreement. However, this must be made possible for both parties, not just the landlord. Unless the parties expressly agree so, the fixed-term rent, as opposed to the indefinite rent, may not be terminated without giving a specific legal reason solely, i.e. at the discretion of either party.

But what if the tenant enters into a five-year contract without the possibility of early termination and, after two years, gets a job in another city where it is not possible to commute regularly? This happened to Mr Pavel, a surveyor, who moved with his family from Brno to Prague. The landlord did not want to let him go and insisted on paying almost three further years of rent.

The law provides for such a situation. If the circumstances in which the parties originally concluded the rent agreement change significantly, the tenant may terminate the fixed-term contract within three months’ notice, to the extent that the tenant cannot reasonably be required to continue the rent. In addition to moving for work, such a change of circumstances may occur due to e.g. health conditions.

Rental of real estate

We will ensure that the rent of an apartment or other property is carried out without legal complications. We will draft or check the rental contract and advise you on how to terminate or extend the rent. You can pay after the service has been provided.

The landlord may terminate the fixed-term contract only for reasons stipulated by law, i.e. if the tenant grossly breaches his or her obligation resulting from the rent, or if he or she ceases to pay the rent. Another reason for termination arises if the tenant is convicted of an intentional crime committed against the landlord or a member of his or her household, on a person who lives in the apartment building or against a third person’s property located in the house. The landlord may also terminate the rent if the apartment is to be vacated for reasons of public interest; for example, the building must be demolished to give way to a highway construction. In such cases, the law protects the tenant as the weaker party.

If you are negotiating a rent agreement, pay attention to the very long but seemingly fixed rent terms. Indeed, if you arrange a rent longer than 50 years, it is considered that it was in fact concluded for an indefinite period of time; in the first 50 years, however, the rent can only be terminated as if it was agreed for a definite period.

However, it is more advantageous for landlords to choose a fixed-term contract for the short term. This is the most effective way for a landlord to protect himself or herself from an irresponsible tenant in cases they are unable to prove a breach of obligations. In addition, it opens up space for a possible increase in rent when extending the contract.

Termination of an indefinite contract

The tenant may terminate the rent for an indefinite period of time at any time, even without giving reasons, within three months’ notice, unless the contractually agreed notice period is different. Logically, such a statement does not need to be justified. Of course, there is nothing to prevent tenants from stating the reason for their decision.

If the landlord wishes to terminate the contract for an indefinite period, he or she may do so only for reasons laid down in the law. Specifically, these are the same as in the case of a fixed-term contract and also when the landlord wants to move into the apartment himself or herself or wants it for his or her husband in the case of divorce. This is also true when he or she needs it for his or her relatives, e.g. children who have started to study at university. But the relatives should actually move into the apartment. A wrongful termination because of such “need” can lead to a claim for damages and a question of the validity of such a statement at all.