Termination of tenancy: Overview, definition, and example
What is termination of tenancy?
Termination of tenancy means ending a rental agreement between a landlord and a tenant. It can happen for many reasons—like the lease reaching its end, one party giving notice, or someone breaking the terms of the lease. Once the tenancy is terminated, the tenant is no longer allowed to live in or use the property, and the landlord can take back possession.
Termination can be voluntary (like when a tenant gives notice to move out) or involuntary (like when a landlord ends the lease because of non-payment or damage).
Why is termination of tenancy important?
Whether you're a landlord or a tenant, knowing how tenancy can be legally ended is key to avoiding disputes, fines, or even lawsuits. For landlords, it’s about reclaiming control of the property if a tenant isn’t following the rules or if the lease has simply run its course. For tenants, it’s about understanding your rights and responsibilities when it’s time to move on—or when you're being asked to leave.
Termination rules vary by lease type and local law, so it’s important to follow the correct process: usually this means written notice, specific timing, and legal grounds for termination if the lease hasn’t expired.
Understanding termination of tenancy through an example
Let’s say you run a small business and lease a retail space on a 3-year contract. You’ve decided to shut down the store and want to end the lease early. You give the landlord 90 days’ written notice, as required by your lease. That’s a voluntary termination of tenancy.
On the flip side, if your business stops paying rent for two months and ignores landlord warnings, the landlord may serve a formal notice and terminate the tenancy for non-payment. That’s an involuntary termination of tenancy.
In both cases, the process must follow the lease terms and any relevant local laws to be valid.
An example of a termination of tenancy clause
Here’s how a termination of tenancy clause might appear in a lease agreement:
“Either party may terminate this Lease by providing not less than sixty (60) days’ prior written notice to the other party. In the event of material breach, including but not limited to failure to pay rent, the Landlord may terminate the tenancy with fourteen (14) days’ notice, subject to applicable state and local laws.”
Conclusion
Termination of tenancy is how a rental agreement comes to an end—whether naturally, by mutual agreement, or due to a problem. Understanding how and when a lease can be terminated helps both landlords and tenants avoid legal issues and plan ahead.
If you’re leasing property—either as a landlord or a tenant—make sure your lease clearly spells out the rules for termination. That way, everyone knows what to expect, and the process can be handled fairly and legally when the time comes.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.