Early termination of a fixed-term tenancy agreement

When deciding to rent out or rent a house or flat, you have to reckon with the possibility that one of the parties will withdraw from the arrangement earlier than the written agreement provides. It is worth preparing for such an eventuality and learning your rights and obligations. What are the consequences of early termination of a fixed-term tenancy agreement?

• Terminating a tenancy agreement – a brief word on the parties
• Notice periods for a fixed-term tenancy agreement
• The flat owner terminates the agreement
• The tenant may terminate the agreement
• What form should the notice take?

Terminating a tenancy agreement – a brief word on the parties

When dealing with fixed-term tenancies, it is worth stressing that the parties to the agreement are the landlord and the tenant. The former is the owner of the flat, who makes their premises available to a third party under the agreement. The latter is the occupant of the property, who uses it under the signed agreement.

Notice periods for a fixed-term tenancy agreement

The time in which a tenancy agreement can be terminated is precisely defined in the regulations. Much depends, however, on how long the agreement is concluded for. For a fixed-term tenancy, Article 673 §3 of the Civil Code applies, which states:

"If the duration of the tenancy is fixed, both the landlord and the tenant may terminate the tenancy in the cases specified in the agreement."

This means that both parties to the signed agreement have the right to terminate it exactly according to the rules set out in that document.

READ ALSO – RENTING A FLAT AND THE REGISTRATION OBLIGATION

The flat owner terminates the agreement

Under the law, both parties to the contract can terminate the tenancy agreement. It should be stressed, however, that the landlord has fewer rights than the tenant. Above all, the landlord must observe the notice period. Fortunately, the landlord can also terminate the agreement with immediate effect, but only in exceptional cases. These are described in Article 11 of the Act of 21 June 2001 on the protection of tenants' rights, the municipal housing stock and amending the Civil Code. The first and most important ground for termination is a situation where the tenant neglects their obligations and uses the flat in a way that is contrary to the agreement. Another problem is the tenant seriously disturbing the peace and making life difficult for other residents. The second situation is where the tenant fails to pay rent or utility charges for at least 3 full billing periods. It should be stressed, however, that the tenant is given an additional deadline to pay the arrears (one month). The third ground for ending the agreement arises where the tenant has sublet, rented out or handed over the premises to a third party for use without the owner's consent.

The tenant may terminate the agreement

A tenant who decides on premature termination of the agreement does not have to comply with as many restrictions as the landlord. However, the tenant has every right to end the agreement early in two cases. This is the case where, at the time of renting, the flat had defects that the owner did not remedy, and where these technical problems endanger the health of the tenant and their household. Much, however, depends on how the agreement was drafted. Every provision in it binds both parties to the transaction whose subject is the flat. It may therefore happen that the agreement is terminated without giving a reason. In that case, however, the tenants have the right to refuse to leave the premises, and the agreement will continue until the date specified in it.

What form should the notice take?

Notice of termination of a flat tenancy, e.g. in Katowice, should be given in writing, otherwise it is considered invalid. It is therefore not possible to end the agreement early orally. The written notice must contain the elements essential to it: the details of both parties to the agreement, the name of the town and the date the document was drawn up. It is also necessary to state the grounds for termination and to specify what it concerns (the address of the premises). The date on which the agreement ceases to be valid must also be specified. The notice prepared in this way must bear the landlord's signature.

As you can see, a tenancy agreement is a document that should be drawn up very precisely. Even so, it is not free of debatable points. To discuss and clarify them, it is worth contacting specialists. The representatives of the REMAX Gold estate agency will explain all its intricacies.