What rights does a landlord have if a tenant cancels the residential lease, before it ends?
The tenant has the right to cancel the lease at any time (on 20 business days’ notice) in terms of the Consumer Protection Act (subject to payment of a reasonable penalty) for premature cancellation. But what is such a reasonable penalty or cancellation fee?
To determine a reasonable cancellation fee, the CPA prescribes a list of factors which must be taken into consideration. These factors include, amongst others:
These provisions are not intended to penalise the tenant, but to recover any actual loss suffered by the landlord because of the cancellation. The following costs could apply:
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