Questions & Answers
The penalty of breaking tenancy contract before expiry
Hi,
I am a tenant and my agreement ends on 30/8/2019, but due to unavoidable circumstances, I need to terminate the contract early on 30/4/2019.
The exit clause states:
1. The penalty for breaking the contract is 2 months' rent
2. The tenant should inform the owner 2 months before vacating the unit otherwise the tenant has to pay 2 months' rent as a penalty.
Already given the owner the notice on 10/2/2019, but he is still claiming the 2 months' rent penalty.
Please clarify how many penalties are in play here.
Thanks
Didi
Dear Questioner,
In order to give you true and accurate information regarding your question, I would need to review your tenancy contract.
Based on the information you have provided, the two exit clauses are independent.
The first clause applies to your case since you are breaking the tenancy contract before the expiry on the 30th of August 2019.
This clause requires a tenant to pay the owner two months’ rent as a penalty for breaking the tenancy contract before expiry.
In regards to the second clause, this typically applies to renewals of tenancy contracts, whereby the owner requires two months’ notice if the tenant did not wish to renew the tenancy contract.
