A tenancy agreement can be ended in three ways: by agreement of the parties at any time, by ordinary termination if the contract is open-ended, or by extraordinary termination if there is a reason named in the law. For ordinary termination of an open-ended residential tenancy agreement the notice period is three months. A fixed-term contract cannot be terminated with ordinary notice before the term ends unless the contract itself provides for it.

First look at what kind of contract you have

Open the tenancy agreement and look for two things:

  • whether the contract is open-ended or fixed-term (valid until a specific date);
  • what the contract says about ending it.

Your options depend on this. The rules below apply to renting a dwelling, i.e. a home. For a commercial lease the parties have more freedom to agree between themselves.

Ending by agreement

The simplest way is to agree with the other party. By agreement a contract can be ended at any time, whether open-ended or fixed-term, and with any notice that suits both.

Put the agreement in writing. Include:

  1. the date the contract ends;
  2. when and how the premises are handed over;
  3. how the rent and running costs for the last period are paid;
  4. what happens to the deposit.

Terminating an open-ended contract

Either party may terminate an open-ended residential tenancy agreement in the ordinary way by giving three months' notice. The period starts when the other party receives the notice, not when you wrote it.

The tenant does not have to give reasons for terminating. For the landlord it is different: a residential tenant is strongly protected by the law, and the landlord's termination must be based on grounds set out in the law and must be reasoned.

A fixed-term contract

A fixed-term contract ends on the date written in it. Before that it can be ended only:

  • by agreement;
  • by extraordinary termination, if there are grounds for it;
  • by ordinary termination, if the contract itself provides for that possibility.

If you want out of a fixed-term contract early and it has no such clause, the most realistic way is an agreement. Offer, for example, to find a new tenant yourself.

Extraordinary termination

Extraordinary termination is meant for situations where the other party cannot reasonably be expected to continue the contract. For example:

  • The tenant may terminate the contract if the dwelling becomes unfit to live in for a reason attributable to the landlord.
  • The landlord may terminate the contract if the tenant has been significantly late in paying the rent. For a dwelling, an additional period of at least 14 days to pay the debt must be given first. There is more on this in the article What happens if a tenant doesn't pay?

In the case of extraordinary termination, be sure to write down the reason.

If the flat is sold

Selling the flat does not end the tenancy agreement. The new owner takes the landlord's place and the contract continues on the same terms.

The new owner may terminate the contract within three months, but only if they urgently need the dwelling themselves. Merely wanting to resell the flat empty does not give that right.

How to draw up a notice of termination

Termination is a unilateral declaration — the other party's consent is not needed. Write in the notice:

  • who is terminating the contract and to whom;
  • which contract (the address and the date it was made);
  • whether it is ordinary or extraordinary termination;
  • the reason, if it is extraordinary or if the person terminating is the landlord;
  • the date the contract ends;
  • when you want to hand over the premises;
  • the account for returning the deposit.

Make the notice in writing — signed on paper or digitally — and send it in a way whose receipt you can prove later. A digitally signed file attached to an e-mail works well.

Common mistakes

These mistakes prolong the contract or cause disputes more often than anything else:

  • Terminating by phone. A verbal termination is hard to prove later. Always do it in writing.
  • A wrongly calculated deadline. The three months run from receipt of the notice. If you send the notice on the last day of the month and the other party reads it the following week, the end date shifts too.
  • Leaving without a handover. If the keys are left in the letterbox and no report is drawn up, it is hard to prove later what condition the premises were left in.
  • Self-help by the landlord. If the contract has ended but the tenant does not leave, the landlord may not change the locks or move the tenant's belongings out. That requires a decision of the rent committee or a court.

Handing over the premises and the deposit

At the end of the contract, hand over the premises together with a handover report. Note the condition of the rooms, the meter readings and the number of keys returned. Take photos. If a similar report was drawn up at the start of the contract, comparing is easy and a dispute over damage is short.

From the deposit the landlord may cover claims arising from the contract, for example unpaid rent or damage beyond normal wear and tear. If the landlord has not made a claim against the tenant within two months after the contract ends, the tenant may demand the deposit back.