Questions & Answers
Should I pay two-month rent penalty in case of early termination of my tenancy?
Hi.
I am a tenant and gave notice to my landlord on 3rd July 2017.
The contract was for 12 months starting March 2017 but had the following provisions:
"The Parties agree that there may be instances where the Tenant shall need to terminate the lease early, and in accordance with current guidelines the Tenant will give a two-month notice and two-month rent penalty in the case of immediate vacation."
The landlord did not come to the pre-agreed date of vacating the premises on the 7th of September because I refused to pay him the two-month penalty, although I had already given him over 2 months notice.
He is saying I have to pay him the additional 2 months even though I read it as only payable if I vacated immediately.
Please note that reading the early termination clause maybe not very clear but it means that you should do both, the two-month notice and the two-month penalty.
It means that your landlord is correct in demanding the two-month penalty towards the early termination.
I believe there is always room for negotiation with your landlord. Try to reduce the penalty from two to one-month penalty.