There are many ways to end a tenancy, one overlooked option is the mutual agreement to end tenancy. A mutual agreement to end the tenancy is simply an agreement between the Landlord and Tenant to end the tenancy on a specific date. 

When should this agreement be considered? It may be used when a tenancy is frustrated and both parties are unable to agree how to correct the disagreement. I have used it in the past when a tenant obtained a pet without permission from the Landlord, which was in violation of the tenancy agreement. The tenant wanted to keep their pet, which required them to find a different rental and they agreed to move out at a mutually agreed upon date. The tenant found a new place to live and the owner was able to have the property back to rent to a new tenant without a pet.        

Landlords have asked can we sign a mutual agreement to end the tenancy at the same time we sign the lease? The Residential Tenancy Branch identifies this as inappropriate. Why is this not allowed? In the standard tenancy agreement in BC there is a section where the landlord must identify if the rental is for a fixed term, and what happens at the end of that term. A landlord is only allowed to have a fixed term where the tenant must vacate at the  end of the term when the landlord has plans to move back into the property. If they are not reoccupying the property then it would be identified as becoming a month to month tenancy from that point on. Trying to use the mutual agreement to end tenancy stating this date would be circumventing the process of landlord use for vacating a tenant. The Residential  Tenancy Branch doesn’t agree with situations that are attempting to find ways around the statute.      

There are benefits for both parties to mutually agree on the end of the tenancy. Tenants know they have time to look for alternative living accommodations. Landlords are able to plan for when the tenants vacate the unit. If the unit needs repairs or updating they can begin to make arrangements to have that completed as soon as the tenants vacate. Landlords are able to begin searching for a new tenant knowing when the current tenancy will end. 

A benefit of the mutual agreement is it is a less adversarial process and both parties know the end is coming, reducing tension between the two parties. If you have frustrated tenancy consider approaching the tenants, or Landlords and mutually agree to move on. 

Renting your property can be confusing. Cartref Properties can assist you, call today to discuss your needs or find more information about us at: www.cartrefproperties.com