How to End a Fixed-Term Lease Without a Hefty Cancellation Penalty
Category General
You've signed a 12-month fixed-term lease, but circumstances have changed. Perhaps you've decided to buy your first home, or you've found a rental property that better meets your needs. Now you're faced with the challenge of giving notice without incurring a steep cancellation penalty. So, how can you do this effectively?
The first step is always to review your lease agreement. Understanding the terms of your contract is essential before making any decisions. Fortunately, South Africa's Consumer Protection Act (CPA) provides some flexibility for tenants. According to the CPA, you can terminate your lease at any point by giving 20 business days' notice. However, there's a catch-this may come with a "reasonable cancellation penalty."
The penalty typically depends on how quickly the landlord or agency can find a new tenant to fill the vacancy. If the property sits empty for a period, you could be responsible for covering 1 to 2 months' rent, depending on the terms outlined in your lease.
To avoid unnecessary costs, it's a good idea to give your landlord as much notice as possible-ideally at least two months. This extended notice period gives them ample time to advertise the property and arrange viewings, improving the chances of securing a replacement tenant before your departure. By doing this, you reduce the likelihood of being charged a significant cancellation penalty and make the transition smoother for everyone involved.
In summary, while the CPA does offer an exit strategy, being proactive and giving more than the minimum 20 days' notice can help save you from unnecessary financial strain and make the process far easier.
Author: Chantelle George
