Vacate Clauses Decoded: Quick Tips for Vacate Clauses in Fixed Term Tenancies
Can You Force a Tenant to Move Out at the End of a Fixed Term Tenancy?
One common question I hear is: "Can I make my tenant move out at the end of a fixed term tenancy if we agreed on a vacate clause?" Well, it's not as straightforward as it seems. Let's dive into the details!
What is a Fixed Term Tenancy?
A fixed term tenancy has a specific start and end date. Neither the landlord nor the tenant can end the tenancy early unless there are exceptional circumstances such as for cause (section 49 of the Residential Tenancy Act) or by mutual agreement.
Can I Have a Vacate Clause in a Tenancy Agreement?
The answer is yes, a tenancy agreement can include a vacate clause, but there are limited circumstances where it's enforceable. A vacate clause requires the tenant to leave at the end of the term, but it can only be used if:
- The landlord or a close family member will occupy the unit at the end of the term.
- The tenancy agreement is a sublease.
Making the Vacate Clause Enforceable
For the vacate clause to be enforceable, you must:
- Clearly state the reason for the clause in the tenancy agreement (one of the two reasons stated above)
- Ensure both parties initial next to the vacate clause.
The tenant is required to move out on the specified end date without any further notice or compensation from the landlord.
What Happens If There's No Vacate Clause in the tenancy agreement?
If no valid vacate clause exists (as per above) and there's no new agreement, the tenancy continues on a month-to-month basis.
Avoiding Headaches
To end a fixed term tenancy early and ensure a smooth transition, sign a mutual agreement with the tenant. This prevents conflicts and keeps everything clear. Landlords, make sure to follow the rules and regulations regarding vacate clauses in tenancy agreements; otherwise, you may be liable to pay the tenant 12 months' compensation!