Break Clause - Clarification on Tenant's Early Termination

Hi,

My tenant has informed me of their intention to leave the property before the four-month break clause, which becomes effective on 21st June. As I understand it, they are then required to provide two months’ notice from that date.

They’ve proposed paying rent for May and allowing me to retain the deposit in lieu of June’s rent, which I find unacceptable.

Could you please confirm whether the tenant would remain liable for rent until 21st August should they choose leave early.

Openrent contract:

The standard break clause can be activated at the 4 month point of our AST, by either party giving 2 months’ notice. If you set, for example, an 8 month break clause, either party can give their 2 months notice at the 6 month point.

Assuming you are using the standard OpenRent contract that has a fixed term of 6 months and a break clause at 4 months, the break clause will work in the following way:

  • Tenant or landlord will give notice to the other party on or before the 4 month point of the fixed term by giving 2 months’ notice.
  • If either party gives the notice before the 4 months, it will only come in to effect at the 4 month point.
  • The 2 months notice will be carried out as the last 2 months of the fixed term tenancy and the tenants will leave on the last day of the fixed term of 6 months.

Yes, legally they are liable until the expiry of a valid tenant notice. However, most landlords negotiate mutually acceptable terms that allow them to leave earlier than this by deed of surrender.