Renting a property requires gathering as much information as possible for the hiring to be a success, avoiding future inconveniences.

In this context, it is essential to pay attention to the fact that the 30-month contracts formalize the tenant’s intention to occupy the residence throughout this term. Thus, the owner of the property will have the house returned only after the end of the agreed period. However, there are cases where it is necessary to terminate the rental agreement before its end.

Knowing these cases and knowing how the Tenancy Law deals with their particularities is very useful when you are about to hire a lease. Follow the reading and learn about relevant aspects of this subject!

Rental contract termination situations

The Tenancy Law, which governs tenancy relations in the country, provides for cases of interruption before the deadline for stipulated leases of 30 months or more. These situations are specified below, check what they are.

Performed by the lessor

The property owner can request the termination of the rental agreement in two different cases. One of these hypotheses is related to wanting to live on the property.

Note that, in this case, the right to ask for housing for own use refers to the repossession of the property for occupation by the owner or his close relatives. These family members can be the spouse or partner, parents, grandparents and children, as long as they do not have residential property.

In view of this situation, in leases signed for 30 months or more, the lessor who repossesses the property only pays a fine if the obligation is registered in the lease agreement.

The landlord may terminate the lease even if the tenant fails to comply with one or more contractual clauses.

A good example of this type of breach of contract is the promotion of renovations in the rented property without the express authorization of the lessor. Poor conservation conditions or clear depredation of property are also against the lease regulations, so they can end up in contractual termination.

Proof of the practice of illegal activities within the property is one of the situations in which the lessor has the right to request termination. Another case for which contractual termination is foreseen, according to the Tenancy Law, is for the government to determine the need for urgent repairs to the property.

Finally, non-payment of rent installments can lead to termination of the contract and the eviction of the tenant. Apart from the cases mentioned above, the owner must wait for the contract to expire before returning the property.

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performed by the lessee

The tenant’s withdrawal does not depend on justification and can happen at any time. To do so, the tenant must only deliver the house. The financial part of this termination includes the application of a fine, the amount of which must be equivalent to that established in the contract.

However, there are specific situations in which the tenant has the right to terminate the contract without incurring the fine. For example, if you identify that the construction has maintenance problems and that they predate the contract closing, you can request termination.

The lessee can also give up the lease without charging a fine when his work forces him to change location. In this case, to be released from paying for the termination of the contract, you must prove the transfer and notify the owner of the property in writing.

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Termination of the contract with indefinite validity

In leases with an indefinite validity, both the owner and the tenant can request the termination. In this particular situation, there is no fine for either party.

It is worth noting that leases of 30 months or more are considered to be contracted for an indefinite period, after the stipulated period has expired. In this case, if the lessee remains in the property for another thirty days – without the lessor stating otherwise -, it is understood that the lease is extended.

Upon expiration of the original contractual period, the intention to terminate the lease must be notified to the other party. This must be done 30 days prior to vacating, and the property must be delivered with rent and other charges on time.

The amount of the fine and how it is calculated

The penalty for termination of the rental agreement can only be applied when the lease is interrupted within the determined term. Of course, except for the cases specified in the previous topics. Check out below what is the value and how to calculate the fine for breach of lease agreement!

Fine amount

The amount of the fine to be applied must be indicated in the contract, as the law does not set an amount or percentage for this charge. But, although it does not establish a value, the legislation determines that the fine must be proportional to the length of the contract that will not be fulfilled.

In practice, this means that the calculation of the fine must consider the number of months remaining until the end of the rental period. Thus, if there are still 10 months to go, for example, before the end of the 30-month contract, the fine must be paid only for the non-fulfillment of time.

How to calculate

To know for sure how much the fine in the above case would cost, just convert the stipulated months into values. The first step to do this is to check how much this fine is. As an example, let’s assume it’s 3 months’ rent, with each month costing R$1,000.

Thus, the fine would total R$3,000 if applied over 30 months, right? However, as there are only 20 months left until the end of the contractual period, the fine will apply to that time. See that each month of fine, in our example, is equivalent to R$ 100. So, just multiply this amount by the remaining 20 months of the contract.

We will have a fine of R$2,000, an amount to be paid to the owner of the property. To find out the value of a contractual penalty day, just follow the same reasoning. In other words, just divide the total amount of the fine by the number in days.

What documents are required to terminate the contract

When you finish hiring the lease, it is essential to present several documents and proofs. The best thing is that this paperwork is already established in the contract, to avoid headaches.

However, in most cases proof of payment of lease charges is required. Thus, electricity, water, condominium and other bills tend to be requested.

To complete the termination of the rental agreement, you must still deliver the property in the same condition in which it was rented. Once these obligations have been fulfilled, the fine is paid – in cases where it is due – and the property is vacated, the lease is considered undone.

As you’ve seen so far, terminating a lease is a very bureaucratic procedure. Therefore, count on the help of a reliable real estate agent to solve complex processes and avoid many inconveniences. Furthermore, the help of professionals specialized in procedures involving real estate is effective in speeding up processes and not having losses.

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