Can either party terminate the lease agreement contract before it is scheduled to end? (Cancellation policy)
There is a legal difference between withdrawing from a contract and terminating or ending one. (Read more about withdrawing here).
Either side can terminate a contract.
Before the lease agreement starts
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By TENANT
If a tenant cannot or does not want to move in on the date written on the lease agreement, then he or she may terminate the contract unilaterally without giving any reason.
In this case, there is no notice period, and it is effective as soon as you are notified about the termination. Cancellation policy according to your offer preferences is applied to the lease agreement (the information about type of cancellation policy can be found in the reservation request, in the offer detail at Flatio or in My Rentals web app).
Strict (30-days) cancellation policy
- If the tenant notifies you of termination more than 30 days before the lease agreement starts, we will refund the first rent to the tenant.
- If the tenant notifies you 29 to 14 days before the lease agreement starts, the tenant gets a refund of half of the first monthly rent. The remaining 50% of the first rent will be sent to you.
- If the tenant notifies you 13 days or less before the lease agreement starts, the tenant is not entitled to the first rental. Full amount of the first monthly rent will be sent to you.
Neighborly (14-days) cancellation policy
- If the tenant notifies you of termination more than 14 days before the lease agreement starts, we will refund the first rent to the tenant.
- If the tenant notifies you 13 to 7 days before the lease agreement starts, the tenant gets a refund of half of the first monthly rent. The remaining 50% of the first rent will be sent to you.
- If the tenant notifies you 6 days or less before the lease agreement starts, the tenant is not entitled to the first rental. Full amount of the first monthly rent will be sent to you.
Friendly (7-days) cancellation policy
- If the tenant notifies you of termination more than 7 days before the lease agreement starts, we will refund the first rent to the tenant.
- If the tenant notifies you 6 days to 48 hours before the lease agreement starts, the tenant gets a refund of half of the first monthly rent. The remaining 50% of the first rent will be sent to you.
- If the tenant notifies you 47 hours or less before the lease agreement starts, the tenant is not entitled to the first rental. Full amount of the first monthly rent will be sent to you.
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By LANDLORD
If for some reason you also decide to use the housing for your own needs, you can unilaterally terminate the contract without giving a reason by giving notice before it begins.
Again, there is no notice period and termination is effective at the moment of delivery (ie immediately as soon as the tenant is notified about the termination), subject to the general cancellation policy.
The tenant is entitled to a full refund of the first rent in all the following conditions.
- If the tenant is notified about termination more than 30 days before the beginning of the lease agreement, you will not pay the contractual penalty.
- If the tenant is notified about termination 29 to 14 days before the beginning of the lease agreement, you are required to pay the contractual penalty in the amount of 50% of the monthly rent to Flatio.
- If the tenant is notified about termination in a shorter period, ie 13 days or less before the beginning of the lease agreement, you are required to pay the contractual penalty in the amount of 100% of the monthly rent to Flatio.
It is important to mention that this general cancellation policy apply even if you have set neighborly or friendly cancellation policy for your offer - these policies only apply to termination by the tenant.
In case you would like to terminate the contract from any reason, contact our customer support ([email protected]) who can make this happen.
After the lease starts
There are various circumstances that allow either party to terminate the agreement after the lease has begun. The lease agreement lists the reasons and circumstances when this may occur. For example, if one party’s rights and obligations have been violated.
How do we proceed with a termination?
The procedure for terminating a contract is similar in all cases, no matter the reason for seeking termination. You can perform all the actions in My Rentals.
- Select a tenant in the Tenants section of My Rentals.
- In the menu under the tenant’s name, select the Agreements tab.
- To see a specific lease agreement, click Detail button.
- Press Terminate agreement button.
You will see the following notice options in accordance with your lease agreement:
- By mutual agreement
“By mutual agreement” means that you and the tenant both agree to end the contract. For example, if you agree with the tenant today that you will terminate the contract tomorrow, select “By mutual agreement”. The system will ask you for the termination date and the reason for termination. After pressing Save, the tenant will create an amendment in the system, which must be signed using the online authorization code. When the tenant signs, the system will notify you and the rent owed will be recalculated automatically according to the new termination date. The contract will be canceled on your agreed date without further notification.
- By the tenant
The tenant can terminate the rental contract without giving a reason with a standard 30-day notice period. There are two ways to do this:
- The tenant arranges it via the Flatio app – The system will send you an email. The 30-day notice period begins at the moment of delivery. You don’t need to take any action.
- The tenant asks for your assistance – In this case, the tenant notifies you that he would like to terminate the contract. This notice may be oral (by phone / in person) or in writing (by letter, text message, or through My Rentals). Then you must terminate the agreement from My Rentals. Choose "By the tenant" type and enter the date the tenant told you they wished to terminate in the Termination Date (so, if the tenant announced it yesterday, please enter yesterday’s date.). You don’t need to fill in the section Termination of Lease to Date. Finish by clicking Save.
- By the landlord
You can also terminate a lease agreement with a 30-day notice period and without giving any reason. You may notify the tenant either verbally or in writing, but you also need to terminate the rental agreement on the Flatio system through My Rentals.
- For gross violation
You may also terminate a lease agreement for gross violation with a 3-day notice period, which may include:
- a delay of 7 days or more for the payment of rent,
- providing a sublease to someone else without your permission,
- violation of the relevant house rules by the tenant,
- building modifications to rented housing without your permission,
- failure to attend the handover of housing.
Termination for gross violation without notice (ie immediately effective) is then possible when you suspect that there is a risk of serious damage to the rented space or its equipment.
Whatever the reason is, it is advisable to contact our customer support ([email protected]) and discuss the matter before giving notice for gross violation.
