Landlords frequently lack certainty about when and whether they can terminate a Lease Agreement. It is crucial to remember that a Lease Agreement can only be terminated in the event of a significant breach. Landlords should take the time to understand the specific clause in their Lease Agreement that outlines the process for cancellation.
The Rawson Property Group provides the following examples of when and how the cancellation may occur:
Repeated Breaches: If a Tenant is placed in breach of the Lease Agreement and remedies such breach on 3 (three) separate occasions over a consecutive 3(three) month period, The Landlord shall be entitled to terminate the Lease Agreement on 20 business Business Day’s notice to the Tenant: In Such an event:
- the Landlord’s right to terminate in terms of this clause shall exist
regardless of whether the Tenant remedies each breach prior to the
expiry of each individual month within the 3 (Three) month period - The above will apply during the initial lease period as well as any
renewal periods to the Lease Agreement.
Immediate Termination for Illegal Activity: The Landlord may terminate the Lease Agreement with immediate effect and may demand that the Tenant vacate the premises immediately in the event that they, their Rental Agent, or the Body Corporate discovers that the Tenant is conducting any illegal or criminal activities or has contravened any law or by-law whatsoever, including the Criminal Procedure Act, Counterfeit in Goods Act and the Treatment of Substance Abuse Act.
False Information During Application: If the Tenant provides incorrect information or neglects to include essential details during the application process conducted before the conclusion of the Lease Agreement, or omits to provide any relevant information or documentation, whether intentionally or in error, the Landlord will be entitled to terminate the Lease Agreement with immediate effect. It's important to highlight that all documentation and information provided or required during the Application Process form the basis upon which the Landlord and/or the Rental Agent constructs and finalise the Lease Agreement with the Tenant.
We hope that this article has given you a better understanding of your rights as the landlord to effectively navigate your way through the process of lease cancellation.
