When moving, you not only have to decide your next apartment, but you also need to complete the procedures for moving out of your current apartment.
However, if you do not carefully check the terms of the contract, you may end up paying a penalty when you move out.
In this article, we will explain in detail the conditions under which penalty fees will be incurred and the points you should check before moving out.
Before you decide to move, be sure to check all the details regarding moving out.
Things to check before deciding to move out
Most rental agreements include a clause that requires the tenant to give the landlord one month's notice before moving out.
Therefore, in a lease agreement, even if you have made all the preparations to move out, it is not acceptable to say, "I'm moving out as of today, please terminate the contract!"
Before you decide to move out, you need to check your rental agreement to see what the conditions are when you move out. First, here are four points you should check in your rental agreement.
- Contract type
- Contract Period
- Termination Notice Clause
- Penalty clause
1. Contract type
Did you know that there are two types of real estate lease contracts? They are the "ordinary lease contract" and the "fixed-term lease contract."
Standard rental contract
This is a common form adopted in most rental contracts. A rental contract for one year or more is set, and the contract can be renewed. The contract will continue to be renewed under the same conditions unless either the tenant or the landlord requests termination.
Fixed-term lease contract
A fixed-term lease is a contract that ends when the lease period ends. It is not automatically renewed like a normal lease. If you want to continue living in the property after the lease period, you will need to re-contract with the landlord's consent.
Please note that unlike a normal rental contract , in principle you cannot terminate the contract midway through the contract period .
2. Contract Term
It is also essential to check the contract period. Depending on the conditions described below, it is important to know how long it has been since you started renting and how much time is left until the contract expires.
3. Termination Notice Clause
Termination clauses are often found in two places within a contract.
① In the clause regarding the lease period
There is a clause that states, "If this agreement is to be terminated upon expiration of the period specified in the preceding paragraph, the Landlord must give written notice to the other party at least ○ months in advance, and the Tenant must give written notice to the other party at least ● months in advance."
② In the clause regarding early termination
There is a clause that states, "If the Tenant wishes to terminate this agreement during the lease period specified in Article X, he/she must notify the Landlord in writing at least X months prior to the end of the contract."
The difference is whether the content ends when the period expires or during the period.
The advance notice period is often the same for both, but not necessarily the same. Make sure to check by when notice is required in each case.
4. Penalty clause
The standard penalty is one month's rent , but it will of course vary depending on the terms of the contract. Since it is a monetary payment, it will always be written in the contract.
Conversely, if it is not written in the contract, you do not have to pay it. There are two main cases where you will need to pay a penalty. Please check to see if it is written in your contract.
- When the period for giving advance notice of the termination of the contract as described above is not observed
- When the contract ends in a very short period of time (less than one year)
I hope that by now you understand that if you are aware of the cases in which penalty fees will be incurred even if you move out during the contract period, you can avoid them.
However, there may be cases where you have no choice but to pay the penalty due to a sudden transfer for work reasons or changes in your living situation.
Is there any way to avoid paying the penalty in such a case?
Even if there are unavoidable circumstances, if the case falls under the one that requires payment of a penalty as stipulated in the contract, in principle the penalty must be paid.
However, if you explain the situation politely, they may be able to reduce the amount.
First, please consult with your landlord or the person at the real estate company who will be handling the procedure.
Penalty charges for mid-term cancellations that are not your fault
Next, we will explain whether or not there is a penalty if you cancel your contract midway through no fault of your own.
For example, there may be cases where you are forced to move out even though you have done nothing wrong, such as if you are being asked to move out due to loud noises from neighbors next door or on the floors above or below you, or if the landlord asks you to move out for personal reasons.
Even in these cases, do you still have to pay the penalty? We will introduce two cases.
In case of eviction due to a third party
An example of this would be noise pollution caused by neighbors, where a third party, neither the landlord nor the tenant, is the reason for the eviction.
It is difficult to say in general, but if the contract contains a provision for penalty fees, you will most likely have to pay the penalty in this case.
Even if a third party is responsible, when considering the relationship between the landlord and tenant as parties to the lease agreement, it is ultimately the tenant who decides to move out.
So, what should you do if you want to move out due to noise or other issues from third parties?
First, consult with your landlord or management company. Because landlords receive rent, they have a legal obligation to provide a certain level of quality in return.
Therefore, if there is noise that is not expected to occur in the course of a normal life, or if there is something that is disrupting your peaceful life, be sure to report it as a complaint and have them resolve it.
If you have sought advice but the landlord or management company does not respond and the problem remains unresolved, then you may have no choice but to move out.
In such a situation, you may be able to negotiate to avoid paying the penalty or have the management company cover the cost by filing a claim for damages.
If you have to move out due to landlord reasons
For example, there may be circumstances that require you to suddenly move out even during the contract period, such as "We want to let a relative move in, so please move out" or "The property is being demolished."
As in these cases, if you are moving out due to the landlord's circumstances, you do not have to pay a penalty because it is the landlord who has broken the agreement.
However, from the tenant's perspective, even though there is no penalty to be paid, they will be forced to move suddenly even though they had planned to continue renting the property, and will be forced to incur unexpected expenses.
It is unclear to what extent the landlord will be willing to help, but as these expenses are incurred for the landlord's convenience, you should be sure to negotiate compensation for the moving expenses.
Possible costs when moving out other than the penalty
When you move out, you may have to pay unexpected fees in addition to the penalty.
Next, we will explain what you should check in the contract to find out the costs involved when moving out other than the penalty fee.
Restoration fee
Restoring a room to its original condition means returning it to the state it was in when you moved in.
Natural deterioration over time and wear and tear due to normal use (such as marks left by furniture being placed on the floor) are not covered, but scratches and stains caused by intentional or negligent acts or neglect of maintenance duties, such as dropping an object and damaging the floor, will be charged to the tenant as restoration costs.
If you paid a deposit when you moved in, the cost of restoring the property to its original condition will be covered by that deposit, but if the cost of restoring the property to its original condition is more than the deposit, you will have to pay the shortfall.
If you want to keep restoration costs down, it is very important to keep the place clean on a daily basis.
In addition, since the standards for who is responsible for the costs of restoring the property to its original condition are unclear, this often causes disputes between landlords and tenants.
To avoid any trouble, please refer to the article below to understand in advance about restoring the property to its original condition.
Cleaning fee, key exchange fee, etc.
It is common to do house cleaning and change locks in preparation for the next tenant, but the contract may stipulate that the tenant is responsible for these costs and will be charged for them when they move out.
In most cases, this fee will be borne by the next tenant, but there may be cases where the contract states that it must be paid when moving out, so be sure to check.
[Finally] When signing the contract, be sure to check the terms and conditions for moving out
So far, we have introduced the points you should check regarding penalty fees as well as other costs that will arise when moving out other than penalty fees.
However, even if you check the points to note at the time of moving out just before you move out, most of them are determined by the contents of the contract, so it is difficult to change the conditions later.
When looking for a property to rent, you may be concerned about the initial costs and monthly rent that will be incurred when you move in, but it is important to also keep an eye on the time when you will have to move out.
People have different reasons for moving, such as wanting to change their residence regularly or facing a sudden transfer for work. When signing a contract, you should anticipate the reason and timing of your move and be sure to check the rules regarding moving out.
