How do you terminate a bad lease agreement?

Having to terminate a bad lease agreement is something you dread occurring as an owner of a rental property.

In a perfect world, every rental experience would go smoothly – but if you’re experiencing hassles with a bad tenant and want to take steps to terminate their contract, discuss this with your property manager and educate yourself on your rights. 

When do you have the right to terminate?

As an owner, you have the right to give notice and end a rental agreement (whether fixed or periodic) or take a matter to court if one or more of the following situations have occurred:

• Your tenant is behind in rent payments.
• Your tenant fails to keep their part of the tenancy agreement, other than rent arrears.
• The premises are destroyed or become uninhabitable.
• The expiry date of the fixed term is approaching and you do not wish to renew the agreement.

There are laws surrounding a tenant who is behind on their rental payments, which is a breach of their tenancy agreement. Often, if a tenant remains in breach of their agreement, you are entitled to terminate the agreement and, if necessary, enforce the termination through court. 

For issues other than rent not being paid that are in breach of the rental agreement, it's important to review the laws in your State or Country. These laws should also cover lease terminations if you are in the unfortunate situation that your premises have been rendered uninhabitable through a natural disaster.

Alternatively, if you are dealing with a problematic tenant, but their fixed-term lease is coming to an end, you can often choose to end the tenancy prior to the expiry date. Again, before proceeding with the end of the lease, it's important to review the laws in your area.