#Property: How to safely cancel a residential lease agreement

If you consider terminating your lease agreement a little earlier than expected, read on.

A residential lease agreement is a rental contract between a property owner and the renter of the property.

Although terminating a lease agreement is possible, it can be costly if you do not follow the correct procedures.

Here’s some advice from Seeff Group properties on how one should go about cancelling a residential lease agreement:

It is important to understand the nature of your lease since cancellation processes differ.

Should you have a fixed-term natural lease, you can cancel it by giving the property owner 20 business days’ notice, subject to a reasonable penalty fee.

However, if you are under a month-to-month lease, the party seeking termination is required to give a calendar months’ notice. Be sure to have read and understood the terms and conditions of your lease agreement before signing it. Take note of all applicable costs.

Following the correct termination procedure means the landlord has no right to withhold your deposit unless there is property damage you have caused during your stay. It is the landlord’s responsibility to keep a reserve to cover any unexpected costs should a tenant choose to leave earlier than expected.

Given that the correct procedures were followed when filing for termination, the landlord has no right to claim rent money for the remaining period of the lease. However, they are entitled to a cancellation fee. This fee would include costs such as loss of income and advertising expenses.

To protect themselves from any issues, landlords are advised to clearly state this in the lease agreement.

Drafting a lease agreement that protects the interests of both parties is one of the many ways that landlords can protect themselves against potential loss.

Making sure the lease agreement is compliant with the CPA and RHA is crucial because it can ensure that cancellation penalty issues are dealt with as quickly as possible without any hassles from the tenant.

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