Reasons to terminate a rental agreement

14 January 2020

Any rental contract may be terminated once the first five years are complete in the case of rentals between private individuals, and seven years if the landlord is a bank or company. There are also other grounds for terminating a rental agreement. These grounds aim to offer more security to landlords and tenants in accordance […]

Any rental contract may be terminated once the first five years are complete in the case of rentals between private individuals, and seven years if the landlord is a bank or company. There are also other grounds for terminating a rental agreement. These grounds aim to offer more security to landlords and tenants in accordance with the Urban Rentals Act (LAU). In other words, there are other cases in which a landlord could terminate a rental contract.

The agreement between the landlord and the tenant is signed by both parties and includes both landlord and tenant obligations so both parties understand the stipulations of the contract. Should there be a breach in contract, the parties may request that the lease be terminated or go to court if an agreement is not reached.

Grounds for terminating a rental agreement:

  1. The rent is not paid.
  2. The deposit is not paid or not updated.
  3. The property is re-rented, subleased or transferred without the consent of the landlord.
  4. Damage or unauthorized work is done to the property without the required consent.
  5. Disruptive, unsanitary, harmful, dangerous or illegal activities are carried out on the property.
  6. When the property is not destined to be the tenant’s permanent residence.
  7.  When the landlord needs to reclaim the residence for their own use or the use of immediate family members. This also includes cases of adoption or a spouse in the event of a final separation sentence, divorce or marriage annulment.