Mutual Termination of Tenancy Agreement: What it is and How to Do It
As a tenant, you may have experienced instances where you need to move out of your rental property before the end of your lease term. This can happen due to various reasons such as job relocation, family emergencies, or simply because you found a better place to live. In such cases, terminating your tenancy agreement can be a daunting and complex process. However, if both you and your landlord agree to end the tenancy early, you can opt for mutual termination.
What is Mutual Termination of Tenancy Agreement?
Mutual termination of a tenancy agreement is a legal process that allows both the landlord and the tenant to end their contractual relationship before the stipulated end date. This process is also known as “surrender of the tenancy” and can only be executed if both parties agree to it. Mutual termination is an ideal option in situations where the tenant needs to move out before the end of the lease term, and the landlord agrees to release them from their obligations.
How to Execute Mutual Termination?
The process of mutual termination of tenancy agreement involves the following steps:
1. Discussing the matter with your landlord
The first step is to talk to your landlord and explain your reasons for wanting to terminate the tenancy early. If your landlord agrees, the next step is to determine the date of termination.
2. Drafting a Mutual Termination Agreement
Once you and your landlord agree on mutual termination, you need to prepare a written agreement that outlines the terms of the termination. This agreement must include details such as the date of termination, any outstanding rent, and any obligations owed to the landlord. Both parties must sign this agreement.
3. Paying Outstanding Rent and Damages
Before the termination is executed, the tenant must ensure that they have paid any outstanding rent and any damages caused during the tenancy. Failure to do so can result in legal action being taken against the tenant.
4. Return the Keys
The tenant must return all keys to the rental property to the landlord before or on the date of termination. Failure to do so can result in the landlord taking legal action against the tenant.
Benefits of Mutual Termination
Mutual termination of tenancy agreement can be beneficial for both the landlord and the tenant. For the tenant, this process provides a hassle-free solution to end the lease early without worrying about financial penalties or legal repercussions. For the landlord, mutual termination can help them find a new tenant quickly, without having to go through the lengthy eviction process.
Conclusion
Terminating a tenancy agreement early can be a challenging process. However, with mutual termination, both the tenant and the landlord can end the lease early without unnecessary expenses and legal complications. It`s important to remember that the process of mutual termination is only possible if both parties agree to it and that all necessary steps are taken to ensure a smooth transition.