Can either party terminate the lease agreement contract before it is scheduled to end? (Cancellation policy) - Flatio
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Can either party terminate the lease agreement contract before it is scheduled to end? (Cancellation policy)

The article was updated on 2. 8. 2024.

When and how can the lease be terminated, and what obligations are connected to it? Read all about such situations in this article.

Either contractual side can decide to terminate the lease agreement early for several reasons. Please note that there is a legal difference between withdrawing and terminating a lease. You can read more about how withdrawing works here.

Before the lease agreement starts

1. By the tenant

If a tenant can't or doesn't want to move in on the start date stated on the lease agreement, they can terminate the lease unilaterally without giving any reason by contacting our support team. In such cases, there is no notice period, and the termination is effective as soon as it's submitted (i.e., as soon as you're notified about the termination being created).

If a tenant terminates the lease agreement this way, we handle the first rental payment according to the cancelation policy you have set for the specific listing.

a) Strict (30-day) cancellation policy

  1. If the tenant notifies you of termination 30 or more days before the lease agreement starts, we will refund the whole first rent to the tenant.
  2. If the tenant notifies you 29 to 14 days before the lease agreement starts, the tenant gets a refund of half of the first rent. The remaining half of the first rent will be sent to you.
  3. If the tenant notifies you 13 days or less before the lease agreement starts, the tenant is not entitled to any refund of the first rent. The full amount of the first rent will be sent to you.

b) Neighborly (14-day) cancellation policy

  1. If the tenant notifies you of termination 14 or more days before the lease agreement starts, we will refund the whole first rent to the tenant.
  2. If the tenant notifies you 13 to 7 days before the lease agreement starts, the tenant gets a refund of half of the first rent. The remaining half of the first rent will be sent to you.
  3. If the tenant notifies you 6 days or less before the lease agreement starts, the tenant is not entitled to any refund of the first rent. The full amount of the first rent will be sent to you.

c) Friendly (7-day) cancellation policy

  1. If the tenant notifies you of termination 7 or more days before the lease agreement starts, we will refund the whole first rent to the tenant.
  2. 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 rent. The remaining half of the first rent will be sent to you.
  3. If the tenant notifies you 47 hours or less before the lease agreement starts, the tenant is not entitled to any refund of the first rent. The full amount of the first rent will be sent to you.

2. By the landlord

If, for any reason, you decide not to accommodate the tenant on the date the lease agreement is supposed to start, you can unilaterally terminate the lease without giving a reason by contacting our support team in advance. Again, there is no notice period and the termination is effective at the moment of delivery of the notice (i.e., as soon as the tenant is notified about the termination submission).

In these cases, the tenant is always entitled to a full refund of the whole first rent.

Please remember that since these situations cause a lot of frustration to the tenant and Flatio's help with providing backup accommodation is often needed, you may also face a penalty which is considered according to the following system (similar to the "Strict (30-day)" cancelation policy for tenants):

  1. If the tenant is notified about termination 30 days or more before the beginning of the lease agreement, you will not pay any contractual penalty.
  2. 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.
  3. If the tenant is notified about termination 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.
IMPORTANT NOTE: This general cancellation policy applies to all landlordsno matter which cancelation policy they've set for their listing. The neighborly or friendly cancellation policies are applicable only for terminations from the tenant's side.

After the lease agreement starts

It's also possible to terminate the lease agreement after it has begun (i.e., in most cases, after the tenant has moved in). The reasons and circumstances when this may occur can always be found in the lease agreement.

There are 4 possible termination types:

  • Termination by the tenant, with a 30-day notice period, that can be submitted from the tenant's or your Flatio account,
  • Termination by the landlord, with a 30-day notice period, that can be submitted only by you via your Flatio account,
  • Termination by mutual agreement, applicable when both you and the tenant agree on a new end date, that can be submitted only by you via your Flatio account and then needs to be electronically signed by the tenant,
  • Termination for gross violation, which can be submitted by you only when a rental payment is 7 or more days after its due date, or by Flatio when informed of another breach of the lease.

To see how to correctly submit a termination after the beginning of the lease and what obligations are connected to each termination type, please visit this article which includes a complete guide on these situations.

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