Ending a Lease by Mutual Agreement: How to Do It
Yes, ending a lease by mutual agreement is possible at any time. All it takes is for the landlord and the tenant to agree on it. No reason needed, no waiting for a notice period. A typical scenario? A fixed-term lease runs until June, but in December the tenant gets a job in another city and wants to move out right after New Year. Below I explain what to put in the agreement, how it differs from a notice of termination and what to watch out for when the flat is handed back.
Can a lease be ended early by mutual agreement?
Yes, if both parties want it. The legal basis is the principle of freedom of contract in Art. 3531 of the consolidated Polish Civil Code. But note: under Art. 673 § 3 of the same Code, a fixed-term lease can only be terminated by notice in the cases listed in the lease itself. Your lease doesn’t list any? Then an agreement is usually the simplest way out. The owner doesn’t have to agree. They can. And if they do, they have a say in the terms (which is actually a fair deal for both sides). It works the same way for fixed-term and open-ended leases.
Mutual agreement vs notice of termination: key differences
An agreement needs the consent of both parties. A notice is a one-sided decision. The other differences are in the table:
| Issue | Mutual agreement | Notice of termination |
|---|---|---|
| Who decides | Both parties together | One party |
| Is a reason required | No | Depends on the lease and the law |
| End date | Any date both agree on | Notice period set by the lease or the law |
| Fixed-term lease | Always possible | Only in cases listed in the lease |
| Settling accounts | Set out in the agreement | According to the lease |
We covered deadlines and requirements separately, in our article on the correct form of a lease termination notice. When it’s the tenant asking to leave early, an agreement gives both sides control over the date and the settlement. Nobody gets caught off guard.
What to include in a lease termination agreement?
The minimum is the parties, the lease, the end date and how accounts will be settled. In practice I recommend adding more:
- the parties and details of the lease (date signed, property address),
- the date the lease ends,
- when and how the flat and keys will be handed over,
- settlement of the deposit under the terms of the lease,
- utilities and charges up to the handover date,
- the tenant’s belongings and the deadline for collecting them,
- a statement that neither party has further claims, or what those claims are.
The deposit is simple. It’s returned or reduced by deductions as the lease says, so you just refer to the lease. Items left behind in the flat are trickier. Better to agree on that upfront, because belongings left by tenants are a classic source of disputes. Oh, and a handover report is often attached to the agreement.
What form should the agreement take and who signs it?
The safest option is in writing, in two copies, signed by all parties to the lease. All of them, which includes co-tenants and co-owners. An agreement signed by only some of them may raise doubts later, and who needs that? The written form mainly serves as evidence here. Unless the lease requires it for amendments and termination - then you have to stick to it. The same rules apply to an occasional lease (najem okazjonalny), though in my view it’s worth reviewing the lease and its attachments. In Tenanto you can attach the agreement and the handover report to the unit documents, and once the tenancy ends, it is worth updating the status of the lease and the property.
Handing over the flat and settling up after the lease ends
The tenant returns the flat in a condition that has not deteriorated. Normal wear and tear is not their responsibility, as follows from Art. 675 of the Civil Code. An order that works well in practice:
- a joint inspection of the flat,
- handing over all sets of keys,
- recording meter readings in the report,
- settling the deposit under the lease,
- confirming that the lease ended on the agreed date.
One more thing. Agree on the terms calmly, without threatening penalties. A tenant who asks for your consent usually wants to part ways without conflict. It would be a shame to spoil that. And if a dispute over the condition of the flat or the settlement breaks out anyway? Then it’s better to consult a lawyer.
A new tenant and the next lease
You know the move-out date, so you can plan your search for the next tenant so the flat doesn’t sit empty. You can show the flat as early as December, as long as the current tenant agrees, and sign the new lease starting the day after the keys are returned. It’s also a good moment to calmly rethink your choice of lease duration and any early termination clauses. Because when both sides want to end the arrangement, ending a lease by mutual agreement is still the simplest and least confrontational route. No need to overcomplicate it.
Frequently asked questions
No. An agreement requires the consent of both parties. Without it, the lease remains in force and can only be ended under the notice terms it provides for.
Not always, but the written form is recommended because it makes it easier to prove what was agreed. It becomes mandatory when the lease requires it for amendments and termination.
It is settled under the terms of the lease, and it is a good idea to write the settlement method into the agreement. The parties cannot agree on deductions? Then it is best to turn to a lawyer.
