When it comes to renting a property, many landlords choose to include a break clause in the tenancy agreement. A break clause is a clause that allows either the tenant or the landlord to end the tenancy before the fixed term has expired. This can provide peace of mind for both parties and give them greater flexibility in their arrangements. However, writing a break clause can be tricky, so here are some tips on how to do it correctly.
1. Be clear about the conditions for using the break clause: The first step in writing a break clause is to be absolutely clear about the conditions that must be met for it to be used. For example, the break clause may state that it can only be used after a certain period of time has passed, or that the tenant must give a certain amount of notice. Be sure to include these conditions in the contract, so that there is no confusion later on.
2. Specify the notice period required: One of the most important aspects of a break clause is the notice period required. This is the amount of time that the tenant or landlord must give before the tenancy can be terminated. The notice period can vary depending on the circumstances, but it is usually between one and three months. Again, be clear about the notice period required and include it in the contract.
3. Define the circumstances in which the break clause can be used: The break clause should specify the circumstances in which it can be used. For example, it may be that the tenant can only use the break clause if they need to move for work, or if they have suffered a change in personal circumstances. Alternatively, the landlord may only be able to use the break clause if they need to sell the property. Whatever the circumstances, be sure to define them in the contract.
4. Consider the consequences of using the break clause: Finally, it is important to consider the consequences of using the break clause. For example, there may be financial penalties for using the break clause, or the tenant may forfeit their deposit. Be sure to include these consequences in the contract, so that the tenant or landlord knows exactly what to expect.
In conclusion, writing a break clause in a tenancy agreement requires careful consideration of the conditions, notice period, circumstances, and consequences. By following these tips, you can ensure that your break clause is clear, fair, and effective.