The article explains key contract termination fields in rental agreements, including notice periods and penalties for early termination by landlords or tenants, and the lock-in period.
It also details WAULT metrics: WAULTe measures the average lease duration until contract end, showing tenant commitment, while WAULTb measures until the earliest break option, indicating risk of early vacancy. These metrics aid landlords and investors in assessing lease stability and risk.
Contract Termination fields
▶ Contracts > Rental Contracts > Contract Termination block
-
Landlord Early Termination Notice Period
The number of months the landlord must notify in advance if they want to terminate the contract early. -
Lock-in ends
The earliest date when the lease contract can be terminated — during the lock-in period, the contract cannot be terminated.Also, in order to terminate the contract on the lock-in date, the early termination notice needs to be submitted in advance, according to the Tenant or Landlord Early Termination Notice Period.
-
Tenant Early Termination Notice Period
The amount of time in advance the tenant must notify the landlord if they wish to end the contract early. -
Tenant Early Termination Penalty
A financial penalty the tenant must pay if they terminate the lease before the agreed end date. -
Notice Period for Regular Contract Termination/Extension
The standard notice period required to end the contract in the usual way, without early termination or penalties. In some cases a lease agreement continues or prolongs for another period if not terminated.
WAULT
WAULTe — Weighted Average Unexpired Lease Term (by end date)
WAULTe shows the average remaining lease term until the contract end date, weighted by the area (or rent) of each lease.
It answers: "On average, how long are tenants committed to stay?"
It includes all lease periods until their scheduled end, including optional break rights if they are not expected to be used.
Use case: Gives landlords and investors a view of lease stability and cash flow certainty. A longer WAULTe implies more secure, longer-term tenants.
WAULTb — Weighted Average Unexpired Lease Term (by break date)
WAULTb shows the average remaining lease term until the earliest possible break option in the leases, also weighted by area (or rent).
It answers: "On average, when is the earliest tenants could leave?"
This is a more conservative estimate of risk, as it assumes tenants may exercise their break options.
Use case: Useful for risk assessment — especially when break clauses are common. A short WAULTb suggests potential near-term vacancy.
Example
WAULTb uses Jan 2026 for Lease A (break date).
WAULTe uses Jan 2028 for Lease A (end date).
Lease B has no break, so both values are the same.
Explore more articles in the Moderan Knowledge Base. If you have any questions or need assistance, feel free to contact us via chat or at support@moderansolutions.com.