Reference Guide: Ending a Tenancy

REASONS TO END A TENANCY - NO FAULT ON PART OF TENANT

For the purposes of terminating a tenancy, it is important to know whether the tenancy is fixed term or periodic, and whether the tenancy is being terminated due to a fault on the part of the tenant or not. The Residential Tenancies Act and regulations set out detailed requirements with regard to the reasons that a landlord may end a periodic tenancy agreement when there is no fault on the part of the tenant. A landlord may then only terminate a periodic tenancy for the reasons allowed under the Act and must also comply with the notice periods set out in the Act. A tenant does not have to have a reason to end a periodic tenancy, but must comply with the notice periods as set out in the Act.

The parties to a fixed term tenancy must look at the terms of their agreement to see if the agreement permits termination of a tenancy before the end of the term and for what reasons. Alternatively, the parties can negotiate a new agreement if both are willing to change the terms of the original agreement.

Termination for a fault of the tenant can occur in a fixed term and periodic tenancy under the terms of the Residential Tenancies Act and is dealt with under the provisions relating to substantial breach.

It is important to note that, as long as a landlord is acting in accordance with the terms of the residential tenancy agreement and the Residential Tenancies Act, there is nothing to prevent a tenancy being terminated in the winter months or at Christmas.

Fixed Term Tenancy

A fixed term tenancy agreement is a contract between two or more parties providing for a tenancy for a fixed period of time, for example, a year. The agreement can only be changed with the agreement of all parties to the contract. Parties to a fixed term tenancy agreement may include in their contract details of when either side can terminate the agreement before the end of the term. If such terms are included, the parties must follow the provisions as agreed. If there are no such terms, the parties can try to negotiate terms, or one party may break the agreement and risk exposure to legal action.

A landlord or tenant may wish to break the fixed term tenancy agreement when there is no provision for them to do so in the agreement. The tenant may wish to leave earlier than the date agreed, or the landlord may wish the tenant to leave on an earlier date. Either party can approach the other to see if he will agree to the fixed term agreement ending early, but the agreement of both parties is required.

If an agreement to end the fixed term at an earlier date cannot be reached, both parties remain bound by the contract. If a tenant decides to break the lease by abandoning the premises during the term of the fixed lease, a landlord can take legal action against the tenant for breaking the contract. The landlord could claim the unpaid rent for the rest of the agreement or, until the premises are re-rented, whichever comes sooner. Even if a tenant is going to break the lease, he may consider giving advance notice to the landlord. A landlord is under a legal duty to mitigate his losses in this situation. This means that the landlord must do all that is reasonable to minimize his loss. If the landlord has advance notice that the tenant is leaving, he could, at the very least look for a new tenant and, thereby, lose less rent.

If a landlord is not fulfilling the landlord’s obligations under the agreement, a tenant may have a reason to break a fixed term agreement. In this situation, the approval of the court is needed.

It is difficult for a landlord to terminate a tenancy for no fault during the term of a fixed term lease in the absence of an agreement with the tenant. It is unlikely that a court order would be given to permit a landlord to end a fixed term tenancy at an earlier date. If a tenant is not fulfilling the tenant’s obligations under the fixed term agreement, such that there is a substantial breach or damage or an assault has occurred, a landlord may have a reason to break a fixed term tenancy agreement. In this situation, either the approval of the court is needed , or a landlord may terminate the tenancy on shorter notice.

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