Terminating a lease agreement

As a landlord, there may come a time when you want or need to terminate a lease agreement. How does that work, exactly, and what should you take into account?

A fixed-term lease agreement

The Fixed-Term Lease Agreement Act took effect on July 1, 2024. Since then, indefinite lease agreements have once again become the standard. As a landlord, you may only enter into a fixed-term lease agreement in exceptional cases, such as when the tenant is a student.

In these cases, the following rules apply:

• The tenant may terminate the agreement prematurely with a notice period equal to the time between two consecutive rent payments, usually one month. Notice of termination must be given by registered letter or bailiff's writ.
• The landlord may not terminate the agreement prematurely. If you want to prevent the contract from being tacitly renewed after the agreed-upon term ends, you must inform the tenant in writing well in advance that the rental agreement will end. If you fail to do so, the rental agreement will automatically continue for an indefinite period.

Even without exceptional circumstances, the parties may enter into a fixed-term lease agreement; however, in that case, the tenant will enjoy rent protection. This means that, as the landlord, you can only terminate the agreement if one of the legal grounds for termination applies, similar to a contract for an indefinite period.

Lease agreement for an indefinite period

Tenant
As a tenant, you can terminate a lease agreement for an indefinite period by providing notice equivalent to the time between two consecutive rent payments, typically one month. Notice must be given by registered letter or bailiff's writ.

Landlord
The landlord is subject to stricter rules. A landlord can only terminate a lease agreement for an indefinite period if there is a legal reason for termination, such as urgent personal use. The landlord must provide written notice of the reason for termination. The landlord must also observe a notice period. The notice period is:

• 3 months if the tenant has been renting for less than 1 year;
• 4 months if the tenant has been renting for more than 1 year;
• 5 months if the tenant has been renting for more than 2 years;
• 6 months if the tenant has been renting for more than 3 years.

The landlord must give notice of termination by registered letter or bailiff's writ.

If the tenant does not agree to the termination of the lease, legal proceedings are required to terminate the lease agreement.

Terminating a lease agreement

A lease agreement can also be terminated if one of the parties seriously fails to fulfill their contractual obligations. Common reasons for termination include:

• Structural rent arrears;
• Serious nuisance;
• Unlawful use of the property.

In principle, legal proceedings must be initiated to terminate a lease agreement. During these proceedings, the court will determine if a breach occurred that justifies termination.

We can assist you with terminating a lease agreement

Terminating or dissolving a lease agreement requires precision and legal expertise. Avoid unnecessary risks and ensure a well-founded legal approach. Our tenancy law attorneys will guide you through the process from start to finish.