Steps to terminate a residential lease safely

Terminating a tenant’s lease can be a simple process if you know the proper steps. Whether you are a landlord or a tenant, there are reasons and strategies that allow you to close the agreement smoothly and safely.

KM2 Real Estate Services has prepared the definitive guide to help you understand when and how to take this step in a professional and orderly manner.

Take note! 

Terminating a residential lease

To terminate a lease means to interrupt the lease agreement before the agreed expiration date. It is a decision that can be made for specific reasons and requires a clear process to avoid legal problems.

Situations in which a landlord may terminate a residential lease

If you are a landlord, you may encounter circumstances in which terminating the lease is necessary. Some of these reasons include: 

• Eviction for non-payment: when the tenant accumulates arrears or fails to pay rent, the eviction process allows the lease to be terminated. 

• Sale of the property: if you decide to sell, the contract may include a clause authorizing the early termination of the agreement. 

• Breach of obligations: the lease can be dissolved if the tenant fails to comply with essential terms, such as timely payment, or causes damage to the property.

• Need for personal use: if you need the housing for yourself or a close family member, you can request early termination of the lease.

• Violation of rules: if the tenant uses the space improperly – such as for unauthorized or commercial activities – you have the right to terminate the agreement.

Ways for a landlord to terminate the agreement 

To formalize the termination, you must notify the tenant by means of a notice document, depending on the cause: 

1. In cases such as non-payment or unauthorized subletting, the lease may be terminated immediately.
2. If you need the property for yourself or a relative, you must give at least 60 days’ notice, and it is advisable to use a burofax.

It is worth remembering that if you do not occupy the property within 90 days after giving notice of termination, the tenant may return or request compensation.

Terminating a lease when you are a tenant

The tenant can also consider early termination of the lease in certain scenarios, such as: 

• Mutual agreement: if both parties agree to terminate, they can agree to leave on terms that benefit both.

• Natural termination: at the end of the term stipulated in the contract, if neither party wishes to renew it, the agreement comes to an end.

• Non-compliance by the landlord: if the landlord fails to fulfill essential obligations – such as guaranteeing a habitable space or making urgent repairs – you may consider terminating the agreement.

• Change in personal circumstances: changes in your financial situation may lead you to opt for another housing option that better suits your new reality.

Steps to terminate a residential lease as a tenant 

If you have lived in the property for more than six months, you can give the landlord at least one month’s notice to terminate the lease.

If you have not yet reached six months, you may have to compensate the landlord for the remaining months to complete the first year of the lease.

Manage your residential lease with KM2 Real Estate Services 

Do you have any questions? No problem! In KM2 Real Estate Services we will be happy to talk more in depth about the steps to terminate a lease safely.

Do not hesitate to contact one of our agents for more information or visit us at any of our real estate agencies in Barcelona and Madrid. We are waiting for you!