Tenants and landlords may have reasons to terminate leases early, but can you get out of a rental agreement without breaching the contract?

Reasons for Early Termination

There are several potential reasons why you might want to end your lease agreement before it has run its course. But, can you get out of a lease without being in breach of the contract? 

The short answer is, “It depends”. 

In this article, we’ll explore the options available if you need to terminate a rental lease before its official end date, whether you are a tenant or a landlord.

Standard cancellation clause

All leases have cancellation clauses, and this clause is your starting point. Sometimes they include possible reasons – grounds – for cancelling a lease. If there are no potential grounds, you will break the contract if you move out early or ask your tenant to leave ahead of schedule. 

If a landlord has met all the lease conditions, it is up to them to decide whether the tenant is in breach of the contract. They are entitled to demand that the tenant pays the equivalent rental amount for the time that the lease still has to run. This, of course, is a worst-case scenario for a tenant, but more amicable solutions can sometimes be found if the tenant approaches the agent and landlord to work something out.

The Consumer Protection Act (CPA)

The Consumer Protection Act (CPA) allows tenants to provide the landlord with 20 days’ notice if they choose to cancel the lease before it expires. However, this does not completely absolve them of any responsibility. While you have the right to move, if the landlord has met the requirements of the lease, and even if they have agreed to terminate the lease, they are within their rights to recoup reasonable costs involved in finding a new tenant. In addition to the loss of rental income as mentioned before, these costs could include advertising the property and/or letting agents' commission. 

Word to the wise:
Although the CPA does not stipulate what a reasonable amount would be, as a landlord, you cannot just charge the tenant any amount you feel like. Remember that it is also illegal to withhold the tenant’s deposit unless there are substantial damages to the property which you can prove was caused by the tenant.

Breach of Contract by the Landlord

Where the landlord has not met their end of the bargain and is in “material breach” of the lease agreement, a tenant can cancel their lease early and won’t be breaching the contract and won’t have to pay penalties. This happens if the property has become uninhabitable, or the landlord has not done the maintenance that they promised they would attend to within the lease agreement and/or in writing. However, in this situation, the tenant must prove that the landlord has failed to uphold their side of the deal.

Have a conversation

Most landlords are reasonable people (especially if you’ve been a good tenant). They can recognise that sometimes tenants find themselves in circumstances where they need to terminate their leases ahead of the agreed date. Take a solutions-driven approach: when you open the discussion, the landlord may be amenable to either another tenant taking over your lease agreement or to you sub-letting the property for the remainder of the lease period. Whatever agreement you reach, at the end of your conversation, you must put it in writing to avoid any confusion or unintended future consequences.

Renewal Clause

Finally, if you have reached the end of your lease agreement and are planning to move, it’s still worth revisiting your contract to see whether it contains an automatic renewal clause. This clause will stipulate how much notice the landlord needs before you can move out. If the lease agreement has expired and you are still living in the property, this indicates – automatically – that you have effectively entered into a new lease agreement. That means you must follow the right procedures to cancel the contract. If the original lease agreement does not include either a cancellation or renewal clause, you must give the landlord one month’s written notice before it comes to an end.

We recommend landlords and tenants use reputable rental agents to minimize stress. For assistance and conflict resolution, contact the Rental Tribunal in your area.

Have more unanswered questions? Here are some related questions – and answers – that might help…

Can the landlord deduct outstanding utilities from my deposit at the end of the lease agreement?

Yes, the landlord can deduct the cost of outstanding utilities from your deposit. However, if you pay an “all-in” rental that includes utilities, you will have paid for these in advance, so this may not apply.  Remember to also check what your lease agreement says. 

Can a landlord evict you immediately in South Africa?

In South Africa, a landlord cannot immediately evict you. If the landlord has formally cancelled your lease agreement and asked you to move out, and you do not, they must go to court to get an eviction order.  The eviction process can take six to eight months. Once the eviction order is granted, you’ll have 14 days to find new accommodation.

How do I get rid of a tenant without going to court?

If, when you send the tenant a formal letter, they do not pay what is due by the time your deadline has expired, you can cancel the lease and ask them to move out. If they leave willingly, you both avoid the hassle of court and extra legal fees.

*Disclaimer: This article is not intended as official legal advice. We recommend that you consult a legal professional for specific advice. RE/MAX of Southern Africa cannot be held liable for any action taken by readers of this article.