Extraordinary termination of the lease agreement
The landlord has the right to cancel the lease agreement in an extraordinary manner if the lessee delays payments or uses the leased space illegally. Upon cancellation of the contract, it must be ensured that the conditions prescribed in the Law of Obligations Act are met and the notice of cancellation is submitted correctly.
Extraordinary cancellation due to late payment
The lessor may cancel the lease agreement pursuant to the provisions of the Law of Obligations Act if:
1) the lessee is in arrears with the payment of rent, incidental expenses or a substantial part thereof due on three consecutive payment due dates;
2) the amount of rent due exceeds the amount of rent payable for three months;
3) the amount of incidental expenses owed exceeds the amount of incidental expenses payable for three months.
The previous deadlines do not have to be met in the event of the tenant’s bankruptcy. In this case, the landlord has the right to demand additional security for the payment of rent and incidental expenses. A reasonable period must be allowed for the security to be paid. If the tenant does not comply with the additional security requirement, the lease agreement may be canceled in an extraordinary manner before the tenant is late with the rent payments.
Extraordinary cancellation in the case of improper use
There may also be situations where the tenant pays the rent correctly but violates the contract by using the leased space differently than previously agreed in the contract or causing distress to the neighbors. Improper use may include, for example, conducting business, subletting rental space or keeping pets in dwellings that are not in accordance with the contract and without the consent of the landlord, as well as simply a noisy lifestyle.
Many apartment associations have established house rules. Under these procedural rules, the occupants of the house may agree on norms of conduct that do not directly follow from the law. In the case of such differences, it is important that the rules of procedure be annexed to the contract and that compliance with them be a contractual obligation for the tenant. However, the fact that the rules of procedure are not included in the lease does not mean that it relieves the tenant of the obligation to consider neighbors. Taking into account the interests of fellow citizens is also an obligation arising from the Law of Obligations Act. There are grounds for extraordinary cancellation of the lease agreement if the violations are repeated and the tenants do not change their behavior despite multiple warnings. Neighbors’ complaints and notifications to tenants must be documented to prove violations.
Notification of extraordinary termination of the contract
The tenant must be notified in writing of the extraordinary termination of the contract.
If the extraordinary cancellation is based on a delay in payment, there is no obligation to give notice of cancellation. If the cancellation is based on the non-contractual use of the rental space, 30 days’ notice must be given. The notice of cancellation does not have to be delayed if the tenant intentionally damages the rented premises. The notice shall state the address of the leased space, refer to the concluded lease agreement, state the grounds for extraordinary termination of the agreement, and indicate the date of submission of the notice and termination of the agreement as well as the procedure for contesting the notice of cancellation. After submitting the notice of cancellation, the landlord has the right to turn off the electricity and water in the apartment to avoid additional costs.
If the tenant refuses to leave the rental space
If the tenant refuses to vacate the premises after the extraordinary termination of the contract, it is almost inevitable that the matter will go to court. In Tallinn, it is also possible to turn to the rental commission with disputes. Submission of an application to the rental commission is free of the state fee; upon applying to a court, a state fee must be paid in accordance with the State Fees Act.
Spontaneous eviction of a tenant is illegal. You can also try to call the police for help, because according to the Law of Property Act, the owner has the right to claim against anyone who possesses his or her property without legal grounds. Before calling the police, documents confirming the extraordinary termination of the lease and the legal owner of the property must be readied.
Rentguru’s experience shows that the complex nuances of extraordinarily cancelling a contract can be avoided by thorough preliminary work in selecting a tenant and concluding a lease agreement.
In the Rentguru automatic payment environment, the tenant can use both debit and credit cards to make payments. You can also add more than one payment instrument, and when one card runs out of money, the following is automatically used.
Unlike a standing order that is commonly used in Estonia, which the tenant can make in their bank account, when making an automatic payment through Rentguru, the owner also retains control over the payment receipts. If the lessee has set up the payment via standing order, the landlord will not be notified of the payment failure. With a standing order, the landlord still has to check monthly receipts. Rentguru’s automatic payments release the owner from this obligation. If the lessee’s means of payment has expired or a card does not have sufficient funds and the payment therefore fails, the landlord must be notified. The owner can then already contact the tenant to specify the receipt of the payment.
Rentguru’s automatic payments are credited to the owner’s account. The owner can make payments to his bank account at any time or, conversely, use the account as a way to save money and make a withdrawal only when a larger sum has accumulated.
