When drafting a tenancy agreement, one important clause to include is a break clause. This clause serves as an exit strategy for both the landlord and tenant in case either party needs to terminate the tenancy before the end of the agreed term. Here’s how to write a break clause in a tenancy agreement.
1. Define the Break Clause: The break clause should be clearly defined by stating when and under what circumstances it can be activated. For example, the break clause can be activated by giving written notice after a certain period of time (e.g. 6 months), or if the tenant breaches the terms of the tenancy agreement.
2. State the Notice Period: The notice period is the amount of time required to be given before the break clause can be activated. Typically, this is at least two months, but it can vary depending on the circumstances. Make sure to include a specific notice period in the clause.
3. Outline the Tenant’s Obligations: The break clause may include certain obligations that the tenant must fulfil before it can be activated. For example, the tenant must have paid all outstanding rent and utility bills up to the date of termination.
4. Specify the Landlord’s Obligations: The landlord has obligations too. For example, they must return the tenant’s deposit within a specified timeframe and conduct a thorough property inspection before the tenant vacates the premises.
5. Include Specific Details: Make sure to include specific details such as the property address, name and contact information of the landlord and tenant, and the start date and length of the tenancy agreement.
6. Get Legal Advice: If you are unsure of how to write a break clause, it’s always best to seek legal advice. An experienced solicitor can advise you on the specific requirements and legalities of your tenancy agreement.
In conclusion, a break clause is an essential part of any tenancy agreement. It provides both the landlord and tenant with a way out of the agreement if unforeseen circumstances arise. Make sure to draft the break clause carefully and clearly to avoid any future disputes.