How can I terminate my lease?

For various reasons, a landlord or tenant may wish to terminate a tenancy agreement early… However, specific rules must be followed depending on the type of tenancy agreement and the reason for termination!

9-year tenancy agreement

In principle, for a principal residence tenancy agreement, the “standard” term is 9 years.

Landlord

• The landlord may terminate the tenancy agreement at any time without paying compensation to the tenant if they decide to occupy the property personally (either themselves or a member of their family). However, they must give the tenant 6 months’ notice.
• The landlord may terminate the tenancy agreement at the end of the first or second three-year period if they wish to carry out works that directly affect the property. They will not have to pay compensation, but must give the tenant 6 months’ notice before the works begin and have supporting documents providing evidence of the works.
• The landlord may ask the tenant to vacate the property without giving a reason, BUT only at the end of a three-year period and they will have to pay compensation – 9 months’ rent if early termination takes place at the end of the first three-year period and 6 months’ rent at the end of the second three-year period.

Tenant

• The tenant may terminate their tenancy agreement at any time, subject to giving 3 months’ notice. During the first three years, however, they will have to pay compensation to the landlord.

If the tenant leaves during the first year, they must pay compensation equivalent to 3 months’ rent, 2 months’ rent during the second year and 1 month’s rent during the third year.

Short-term tenancy agreement  (< 3 years)

If the tenancy agreement is entered into for a term of less than 6 months, early termination is not possible.

Landlord

• The landlord may terminate the tenancy, but only after one year of occupancy AND if they decide to occupy the property personally (the landlord or a member of their family). However, they must give the tenant 3 months’ notice and pay compensation equivalent to one month’s rent.

Tenant

• After a certain number of months of occupancy, the tenant may terminate the tenancy subject to 3 months’ notice and compensation equivalent to one month’s rent.

Long-term tenancy

A long-term tenancy is a tenancy lasting more than 9 years, which is automatically extended in 3-year periods if neither party gives the other notice at least 6 months before the end of the agreement.

Landlord

• If the tenancy is terminated without cause at the end of a three-year period, the landlord must pay 3 months’ rent (at the end of the third or any subsequent three-year period). Before the third three-year period, the compensation is the same as for a 9-year tenancy: 9 months’ compensation at the end of the first three-year period and 6 months at the end of the second.

Tenant

• The tenant may terminate the tenancy at any time, subject to 3 months’ notice.

If the tenant leaves during the 1st year, they must pay compensation equivalent to 3 months’ rent; during the 2nd year, the compensation is equivalent to 2 months’ rent, and during the 3rd year, one month’s rent.