Early Termination
Early termination is when a tenancy ends before the date originally agreed in the contract. From a landlord’s perspective it can arise in several ways:
The tenant asks to leave early and you agree a surrender, usually documented in writing.
A break clause is exercised correctly by either party.
You regain possession through court proceedings on one of the statutory grounds, under the Renters’ Rights Act regime that replaces most “no-fault” routes. For example for serious rent arrears or tenancy breaches.
If a tenant simply walks away without agreement or legal grounds, that is usually a breach of contract, and you may claim rent and reasonable costs until the property is re-let, but you also have a duty to mitigate your loss by marketing it again.
Under the tenant fee rules, reinforced by the Renters’ Rights Act, any “early termination fee” charged to a tenant must reflect your actual, evidenced loss such as rent shortfall and reasonable re-letting costs. Overcharging or double recovering rent from both the outgoing and new tenant risks enforcement action.
Landlords should keep clear records of negotiations, marketing activity and costs so they can justify any sums sought when a tenancy ends early.
Also see our landlord blog articles, including:
