Termination clauses in holiday let contracts: ending a stay fairly
A termination clause says when you may end a booking early and what happens to the guest's money. The Consumer Rights Act 2015 lists terms that may be unfair, including letting the business cancel on a discretionary basis when the guest cannot, and keeping payment for services not supplied. Name specific grounds, set out the steps and refund fairly.
What a termination clause is for
A termination clause sets out when you can end a stay before the agreed departure date, and what that means for refunds and the damage deposit. It protects you in the cases you worry about most: a party, serious damage, more guests than agreed, or behaviour that puts the property or neighbours at risk.
Written well, it also protects the guest. A clause that is clear and balanced is easier to rely on than one so wide that it looks like a way to cancel at will.
What the fairness rules say
Schedule 2 to the Consumer Rights Act 2015 is a list of terms that may be regarded as unfair in a consumer contract. It includes a term that lets a trader "dissolve the contract on a discretionary basis where the same facility is not granted to the consumer", or lets the trader keep the sums paid "for services not yet supplied" where it is the trader who ends the contract. It also includes a term requiring a consumer who fails to meet their obligations to pay "a disproportionately high sum in compensation".
The CMA's guidance on fair contracts, published on GOV.UK, says to use everyday words, avoid vague wording and keep charges for a breach "proportionate and appropriate". It also says to give a refund of any prepayments if the customer is not at fault.
Whether these rules cover a particular guest depends on whether you let as a business and they book as a consumer. For most hosts letting commercially, write the clause as though they do, and take advice on any individual dispute.
Grounds worth listing
Specific grounds are fairer and easier to prove than a general right to cancel. Typical examples, for you to adapt to your own property:
- More people staying than the booking allows, or a change of guests you have not agreed.
- A party or event in breach of your house rules or noise policy.
- Serious damage or conduct that puts people or the property at risk.
- Breach of a safety rule, such as tampering with smoke alarms.
- Failure to pay a balance that was due before arrival.
- Using the property for something other than the stay you agreed.
Process, refunds and the deposit
Say what you will do before ending a stay: for example, a warning where the problem can be fixed, then written notice by message or email, and a time by which the guest must leave. Say what happens to the money for the unused nights and what the deposit will be used for.
If a guest refuses to leave, do not act alone in ways you would not want a court to see. Take advice from a solicitor or your local authority first. That is general caution, not a statement about any particular remedy.
Changing guests halfway through a stay
A common request is to swap some of the guests mid-stay, which means extra bedding, towels and cleaning. There is no official rule for it, so it comes down to your terms. A sensible clause says that changes to the named guests need your prior written consent, may carry a fair charge for any extra cleaning or linen, and that the total number of people may not exceed the booking. Record any change you agree.
What an early end-of-stay record should show
A preview of our free Early End of Stay Notice and Handback Record. The complete, print-ready version is sent to you by email.
Stay details
- Property name or address
- Lead guest name
- + 4 more in the full form
Why the stay ended
- Who ended the stayHost · Guest · Agreed by both
- Ground relied on, as set out in the booking termsMore guests than booked · Party or event · Damage or risk · Safety rule broken · Unpaid balance · Guest left early · Other
- + 3 more in the full form
Handback of the property
- Keys, fobs and access codes returned or changedYes / No
- Property inspected and photographed at handbackYes / No
- + 1 more in the full form
Money
- Refund for unused nights, if any (£)
- Amount kept from the deposit, with reasons (£)
- + 2 more in the full form
The full form has 18 questions in 4 sections, a signed declaration and space for your business details. Get it free below.
Free template
Get the print-ready Early End of Stay Notice and Handback Record
A print-ready notice and record for the rare case where a stay ends early: the ground, the warning given, the departure, the property handback and the refund, with both signatures. Free, and yours to adapt.
Frequently asked questions
Can I end a holiday let early whenever I want?
A right to cancel at will, with no matching right for the guest, is the type of term the Consumer Rights Act 2015 lists as possibly unfair. Name specific grounds, explain the steps and treat refunds fairly.
Does the guest get a refund if I end the stay?
The CMA says to refund prepayments where the customer is not at fault. If the guest has broken a clearly stated rule, your terms can say what is kept and why, as long as the sum is proportionate. Take advice on any serious dispute.
Should the clause be the same for every property?
The structure can be, but the grounds should match each property: a hot tub, a shared drive, neighbours close by or a pool each justify specific rules. Read our guide to using the same terms for every property.
What if a guest wants to change guests halfway through?
Make it a matter of your prior written consent in the booking terms, state any fair charge for extra cleaning or linen, and keep the total guest number within the booking. Note the change in writing when you agree.
Sources
- Consumer Rights Act 2015, Schedule 2: Consumer contracts that may or may not be regarded as unfair, legislation.gov.uk
- Writing a fair contract for customers, Competition and Markets Authority on GOV.UK
The paperwork behind every booking
Holiday let agreement, cancellation and deposit policy, house rules, noise policy, GDPR notice and more as editable templates. One payment, no subscription.
See the packs, from £29 →These articles are general guidance for UK holiday let owners and hosts, not legal, tax or insurance advice. Holiday let rules differ between England, Scotland, Wales and Northern Ireland, so check the position for your property. Our documents are editable templates to adapt to your own lets.