Tenant Wants to Leave Early? Surrender and Re-let Fees (2026 Rules)

Updated October 2026 for the Renters’ Rights Act. England.

Until 1 May 2026, a tenant who wanted to leave part-way through a 12-month fixed term needed a break clause or your agreement. That world has gone. Most private tenancies in England are now rolling assured tenancies, and a tenant can end one with two months’ written notice at any time. So “leaving early” now means leaving before that two-month notice runs out. This guide covers your options, what you can and cannot charge, and how to agree an exit that protects your income.

Key takeaways

• A tenant can give two months’ written notice at any point in the tenancy. You can’t require more.
• If they want to go sooner, you can insist on the full notice, agree a shorter period in writing, or accept a surrender.
• Any payment for an early exit must not exceed your actual loss (Tenant Fees Act 2019, Schedule 1, paragraph 7). Flat “early release fees” are banned.
• Joint tenants must all agree to a surrender or a shorter notice period.
• Put whatever you agree in writing, including the end date and what rent is payable up to it.

What has changed since May 2026

Under the Renters’ Rights Act 2025, assured shorthold tenancies became assured periodic tenancies on 1 May 2026, and any end date in the agreement no longer ends the tenancy on its own. A tenant must give at least two months’ written notice, and government guidance says it should end on a rent day or the day before. Break clauses and fixed-term lock-ins no longer have effect. Our guide to tenant notice periods explains how to check a notice and calculate the end date.

If you served a valid Section 21 or Section 8 notice before 1 May 2026, transitional rules may apply to that tenancy. Take advice if you are unsure.

Your three options when a tenant wants to leave sooner

1. Hold them to two months’ notice

You are entitled to rent until the notice expires, even if the tenant moves out earlier. Confirm the correct end date in writing. If you re-let before then with the tenant’s agreement, you can’t also charge the outgoing tenant rent for the same days.

2. Agree a shorter notice period

The Act allows you to accept less than two months if you agree in writing. A short email is enough: “We agree your tenancy will end on [date] and rent is payable up to and including that date.” All joint tenants must agree.

3. Accept a surrender

A surrender ends the tenancy now, by agreement. Best practice is a short written surrender, ideally a deed, signed by every tenant, stating the date, the return of keys and how the deposit will be dealt with. A surrender can also be implied, for example when the tenant hands back the keys and you accept them and re-let, but relying on that leaves room for argument.

What you can charge for an early exit

The Tenant Fees Act 2019 bans most payments, but paragraph 7 of Schedule 1 allows a payment when the tenant asks to end the tenancy early. It must not exceed:

• for a landlord, the loss you suffer because the tenancy ends early; or
• for a letting agent, its reasonable costs.

In practice the loss is usually the rent for the rest of the notice period that a new tenant does not cover, plus any reasonable extra costs the early exit causes, such as advertising the property sooner than planned. Keep evidence of each item. You can’t charge a flat fee, a percentage of the remaining rent, or costs you would have incurred anyway at the end of the notice. Taking a banned payment risks a civil penalty of up to £5,000, or up to £30,000 for a repeat within five years, and the tenant can recover it.

Item	Can you claim it?
Rent until the agreed end date	Yes — it is rent, not a fee
Rent for the rest of the two-month notice that a new tenant doesn’t cover	Yes, as a loss, if agreed as part of the early exit
Reasonable extra advertising costs caused by the early exit	Usually yes, with receipts
A flat “early termination” or “release” fee	No
Referencing costs for the new tenant	No — you can’t charge tenants for referencing

How to negotiate a good exit

1. Ask why and when. A tenant moving for work may be flexible about dates; one buying a house may have a fixed completion date.
2. Market the property straight away. Agree viewing times in writing and give proper notice of each one. See can a tenant refuse viewings?
3. Offer a clear deal. For example: the tenancy ends when a new tenant moves in or on the two-month date, whichever is sooner, with rent payable up to that day.
4. Put it in writing and get every joint tenant to sign.
5. Book the check-out against the check-in inventory, collect all keys and take meter readings.
6. Return the deposit within 10 days of agreeing the amount. Any agreed early-exit payment can be deducted only if the tenant agrees.

Common mistakes

• Charging an “early release fee” or a percentage of the remaining rent.
• Relying on a break clause or fixed term in an old agreement — neither has effect now.
• Re-letting before the old tenancy has legally ended.
• Agreeing an exit with one joint tenant only.
• Leaving the deal undocumented, then disputing the final rent.

Frequently asked questions

Can a tenant still be held to a fixed term?

Not for most private tenancies in England. Since 1 May 2026 they are periodic assured tenancies, and a tenant can end one with two months’ written notice at any time.

Do I have to agree to an early exit?

No. If the tenant gives less than two months’ notice you can insist on the full period, and rent stays payable until the tenancy ends. Agreeing a shorter period or a surrender is your choice.

What can I charge a tenant who leaves early?

Only a payment the tenant agrees to that does not exceed your actual loss from the early exit (for an agent, its reasonable costs), under paragraph 7 of Schedule 1 to the Tenant Fees Act 2019. A flat “early release fee” is a banned payment.

Is a set of keys through the letterbox a surrender?

It is an offer to surrender. The tenancy ends only if you accept it, so confirm in writing whether you accept before you re-let.

Can one joint tenant surrender the tenancy?

No. A surrender needs every joint tenant to agree. A valid notice to quit from one joint tenant can, however, end a periodic tenancy for all of them.

Related: joint tenants splitting up, deposits when one joint tenant leaves, what fees landlords can charge.

Written by the Landlords Portal Team. General information for landlords in England as at October 2026, not legal advice.