What is a Break Clause?
A break clause can be included in any contract and gives either side the option to end the contract before the end of the agreed fixed term.
Not all contracts include a break clause so it's important to check the wording of your own contract first.
When can I use a Break Clause?
When you can use a break clause depends on the contract that has been signed. If you are considering using a break clause, then you should check your contract to see if it includes a break clause and at what point it becomes available.
As standard, OpenRent's contract includes a six month break clause. This means that either side can give two months' notice to end their tenancy from month four onwards.
Who can use a Break Clause?
A break clause can be used by either a tenant or a landlord to end the tenancy unilaterally. Unilaterally means that you don't need the other side to agree. For example, if a tenant has a six month break clause in their contract and decides to give two months' notice at month five, then the tenancy will end at month seven - even if the landlord doesn't give their agreement/permission.
However, the process is a bit more complex for landlords.
How can I use a Break Clause?
Details of how to serve notice using a break clause are normally outlined in the tenancy agreement.
If you are using OpenRent's contract then either side will need to give at least two months' written notice. OpenRent's contract allows for notice to either be sent by post or by email. However, you should check your own contract for details of how to serve notice.
It is important to note that the break clause ends the fixed term of the tenancy agreement, but is not in itself sufficient for the landlord to enforce possession of the property. For this, they need to serve a correct statutory notice (e.g. a section 21 notice) alongside the break clause notification.
We have created this easy-to-use tool to help Landlords serve notice on their tenants to end the tenancy. This is accessible to both Rent Now and non-Rent Now tenancies.
You can access the tool by clicking here.
Please be advised that if you plan to use this tool to activate a break clause, you must ensure that all the necessary requirements of the break clause are met, as this notice alone may not be sufficient.
We do also have a full guide on how to serve notice here.
When can't I use a Break Clause?
You can't use a break clause before it becomes available; e.g. if there is a six month break clause, you can't serve notice at month three and expect the tenancy to end at month five.
Once a break clause becomes available it normally stays available from that point onwards. For example, if there is a six month break clause, then the tenant can still give two months' notice at month eight - in this example the tenancy would then end at month 10.
What if I need to end a tenancy early but can't use a Break Clause?
If you are a tenant who needs to end a tenancy early, but can't use a break clause, then you can ask your landlord to end a tenancy by mutual consent. We have a full guide on how tenants can end a tenancy early here.
Landlords who need to end a tenancy early may be able to use a Section 8 notice, depending on the circumstances. A Section 21 notice can only be used in accordance with a break clause to end the tenancy at the end of the fixed term or to end the tenancy once it is periodic. You can read our full guide to Section 21 and Section 8 notices here.
Information on this site is by way of general guidance only and may not apply in your particular circumstances. You should not act or refrain from acting upon information on this site without seeking independent legal advice.