Ending a Tenancy by Mutual Agreement

Ending a Tenancy by Mutual Agreement: A Guide for Tenants and Landlords

Renting a property is a common practice in today`s housing market. Tenancy agreements are signed between landlords and tenants to establish the terms of the rental, including the duration of the lease and the rent payments. However, situations may arise where tenants and landlords want to end the tenancy before the lease expiry date. In such cases, ending a tenancy by mutual agreement can be a hassle-free and cost-effective solution.

What Is a Mutual Agreement?

A mutual agreement is a legally binding contract between a tenant and landlord to end the tenancy earlier than the agreed-upon lease term. This agreement is signed voluntarily by both parties and is different from an eviction notice, which is involuntary and may have legal consequences.

Why End a Tenancy by Mutual Agreement?

There are many reasons why tenants and landlords may want to end a tenancy by mutual agreement. The most common reasons include:

- The tenant has found a better or more affordable place to live

- The landlord wants to sell or renovate the property

- The tenant has experienced financial difficulties and can no longer afford the rent

- The tenant or landlord has experienced personal or family circumstances that require them to leave the property

What Are the Steps to End a Tenancy by Mutual Agreement?

If you want to end your tenancy by mutual agreement, you should follow these steps:

1. Talk to your landlord or tenant

The first step is to have an open and honest conversation with your landlord or tenant about your intentions to end the tenancy early. Discuss the reasons behind your decision and see if you can come to an agreement that works for both parties.

2. Put it in writing

Once you have agreed to end the tenancy early, you should put the agreement in writing. The agreement should include the date the tenancy will end, any conditions of the agreement, and the signatures of both parties.

3. Notify the rental authority

In some states or territories, you may need to notify the rental authority of the early termination of the tenancy. Check with your local authority to see if this is a requirement in your area.

4. Vacate the property

On the agreed-upon date, the tenant should move out of the property, leaving it in a clean and tidy condition. The landlord should return the security deposit to the tenant within the stipulated time frame.


Ending a tenancy by mutual agreement can be a practical solution for tenants and landlords who want to end the tenancy early without legal issues. The key to a successful mutual agreement is open communication, honesty, and a willingness to compromise. If you are a tenant or landlord considering ending a tenancy early, follow these steps to ensure a smooth and hassle-free transition.