Termination Ground Rental Law: your rights and obligations
A **termination ground** under the rental law is a statutory reason why a landlord or tenant can terminate a lease agreement. Without a valid ground, a termination is null and void. The rental law provides clarity on which grounds are valid and how they must be applied. Whether you are a landlord or tenant, it is important to know the rules to prevent conflicts.
What is a termination ground?
A **termination ground** is a statutory condition that must be met to terminate a lease agreement. These grounds are laid down in the Rental Act 2024 (formerly the Rental Act 1971), in particular in Book 7 of the Civil Code (CC). This law protects both tenants and landlords, but sets requirements for the reasons for termination.
There are different types of termination grounds, which vary depending on who issues the termination: the landlord or the tenant. It also makes a difference whether it concerns a **residential lease agreement** (residential) or a **commercial lease agreement** (business).
Types of termination grounds
| Type of termination | Valid grounds | Statutory basis |
|---|---|---|
| Landlord |
|
Book 7 CC |
| Tenant |
|
Book 7 CC |
Important: Not every reason is automatically a valid termination ground. For example, a landlord cannot terminate just because they are looking for a better tenant. The law sets specific requirements.
Termination grounds for the landlord
A landlord can terminate a lease agreement on various grounds, but these must always be laid down in the law. Below are the most important grounds:
1. Own use (art. 7:290 CC)
A landlord may terminate if they or a close family member (such as a child, parent or partner) wishes to use the property themselves. This is one of the most common grounds. The landlord must demonstrate that the own use is genuine and not merely a pretext.
Example: You are a landlord and your daughter wants to live with you after her studies. You may terminate the lease agreement by referring to own use, provided you can prove it (for example with a statement from your daughter).
2. Non-payment (art. 7:291 CC)
If the tenant is in arrears with payment, the landlord can terminate the lease agreement. However, this only applies after a notice of default procedure and a payment period of at least 3 months. The landlord must first issue a notice of default and give the tenant the opportunity to pay the debt.
Example: The tenant does not pay for three months. You issue a notice of default and give a period of 3 months. If the tenant does not pay, you can terminate.
3. Breach of the lease agreement (art. 7:292 CC)
If the tenant repeatedly or seriously breaches the lease agreement (for example by housing strangers, causing damage or nuisance), the landlord can terminate. However, this must always be proportionate and the landlord must first have given a warning.
Example: The tenant repeatedly holds parties causing nuisance to neighbours. After a warning, you can terminate the agreement on the ground of breach of the agreement.
4. Works or renovation (art. 7:293 CC)
If the landlord wishes to carry out major works or renovations to the property,