Are you a landlord wondering how to write an effective lease termination letter? Look no further! In this article, we will guide you through the step-by-step process of crafting a professional and confident termination letter. Gain practical tips and learn from specific examples. Equip yourself with the necessary tools to handle this task like a pro in the realm of property management.
In this article:
- What Is a Lease Termination Letter?
- When to Send a Lease Termination Letter
- Why Would I Need to Send a Lease Termination Letter?
- What to Include in Your Lease Termination Letter
- Free Template of Lease Termination Letter
- What to Avoid When Writing a Lease Termination Letter
- Helpful Tips for Writing Your Lease Termination Letter
- Frequently Asked Questions
- Avoid Terminating Tenants with Apartments.com
What Is a Lease Termination Letter?
A lease termination letter is a written notice given by the property owner or manager to the tenant, also referred to as a 30-day notice to vacate. Its purpose is to inform the tenant that their lease agreement is nearing expiration and will not be extended beyond a specified date. This letter clearly outlines the termination date of the lease and any other relevant conditions pertaining to the termination such as a reason for termination. It is crucial to document all details in writing to prevent any potential misunderstandings in the future.
When to Send a Lease Termination Letter
A lease termination letter is usually given to a tenant at least 30 days prior to the end of the lease date stated in the letter. A 30-day notice is especially common with month-to-month tenancies. However, you may be required to provide a 60-day notice or even a 90-day notice of termination, so be sure to read through your lease agreement thoroughly and check your local and state laws before you send a lease termination letter to your tenant. This will ensure you have given them proper notice according to your state regulations and the terms of your lease.
Why Would I Need to Send a Lease Termination Letter?
There are several reasons why a landlord may need to send a lease termination letter. Generally, these reasons fit into one of six categories. Landlords may send a lease termination letter if:
- The landlord is selling the rental property, and the current tenants must vacate it
- The landlord decides to move themselves, or their family, into the rental unit
- The tenant chooses not to renew their lease/ It’s the end of the lease term
- The tenant decides to break their lease early
- The military deploys the tenant
- The rental property becomes inhabitable
Likewise, if the tenant violates their lease, you may send a lease termination letter as the first step of the eviction process. Landlords may end a tenant’s lease if they:
- Continuously violate noise policies
- Continuously violate pet policies
- Significantly damage the rental property
- Conduct criminal activity in the rental property
- Fail to pay rent
While some landlords choose to send an eviction notice following lease violations, you also have the option to send a lease termination letter.
While rare, these circumstances do occur. To prevent any misunderstanding when they do, landlords should include a lease termination clause in the original lease contract. The clause should outline the circumstances in which a landlord or a tenant may terminate a lease. It should also outline the protocol for landlords and tenants to follow for each occasion, such as giving 30 days’ notice before vacating the property. Finally, the clause should also include any consequences or fees a tenant must pay if they break their lease early.
If the lease between you and your tenant is coming to an end and the tenant chooses not to renew their lease, then it is standard procedure to send them an end-of-lease letter as a reminder. If your tenant chooses to break the lease, they will be required to send you a notice to vacate letter, and in return, you may send an end-of-lease letter as confirmation. If the tenant violates their lease and you have to evict them, you would not be sending a lease termination letter, but rather an eviction notice.
What to Include in Your Lease Termination Letter
Your lease termination letter to your tenant should include:
- Your name
- The name(s) of tenant(s)
- The date you’re writing the letter
- The reason for termination
- The end of lease date
- Move-out process instructions
- Copy of the move-out checklist
- A request for the tenant’s new address
- A request for the date and time of the walk-through inspection
Begin the letter by writing your name and your contact information (including your mailing address) in the upper left-hand corner. This should be followed by today’s date and the name and mailing address of your tenant. Address the letter to your tenant and give them the reason for this letter in the first paragraph, as well as the start and end dates to the lease.
The second paragraph should mention the already completed move-in walk-through. You should have given them a copy of this at the beginning of the lease, but to be sure, attach another copy for their records. Follow up this sentence by requesting to schedule a move-out walk-through (also known as a final inspection).
Afterwards, request your tenant’s new mailing address in the case of returning the security deposit (if there are no damages or rent left unpaid). Finally, thank your tenant for renting from you, followed by your signature and full name (printed).
Here is a free template of the lease termination letter to help you get started. Remember that this is just a template, so be sure to check your state laws and the terms of your lease before finalizing your lease termination letter.
Free Template of Lease Termination Letter
Here is a free template of a lease termination letter to help you get started. Keep in mind that this is just a template, so be sure to check your state laws and the terms of your lease before finalizing your lease termination letter.
[Your Name]
[Your Phone Number or Email]
[Street Address]
[City/State/Zip]
[Today’s Date]
[Tenant Name]
[Tenant Address]
[City/State/Zip]
Dear [Tenant First Name],
This letter is to inform you that the lease for [Address] signed on [Lease Start Date] will terminate on [Lease End Date] and will not renew. Attached is a copy of the lease agreement for your reference. Per the lease agreement, this lease termination letter fulfills the [Number of Days]-day notice requirement.
This decision has been made due to [Reason for Termination: e.g., the end of the lease term, sale of the property, repeated violations of lease terms, etc.].
Please ensure that you have vacated the premises by [Move-Out Date], which is in accordance with the notice period stipulated in our lease agreement.
I have attached a copy of the move-in walk-through and would like to schedule a move-out walk-through at the end of the lease. Please email or call to schedule the final inspection.
Please also send your new mailing address for future reference and in the case of returning your security deposit.
Thank you for your time on the above matter and for being a great tenant. If you need anything further, don’t hesitate to reach out.
Sincerely,
[Your Signature]
[Your Full Name]
What Should I Avoid When Writing a Lease Termination Letter?
No matter the situation, it’s important to leave on good terms with your tenant. Follow these tips on what to avoid in your lease termination letter:
- Avoid an unprofessional tone when writing your lease termination letter. Your lease termination letter should be written in professional and polite language. It should not come across as being rude or dismissive.
- Don't make any promises about refunding a portion or the full security deposit in your lease termination letter. Even if you’re sure that there are no damages to the property, never make any verbal or written promises about the tenant’s security deposit until it’s definite.
- Avoid using vague language, especially regarding the lease end date. Write out the full date (month, day, year) so there are no questions.
- You should never make up or embellish the cause of termination. Be sure you clearly state the reason for lease termination in the letter.
Helpful Tips for Writing Your Lease Termination Letter
Before you begin filling out your lease termination letter, let’s go over a few final tips.
- Remember you can personalize the letter however you like, such as including the reason for termination (if applicable) or specific move-out instructions (that should also be outlined in the lease).
- Keep your written notice simple and polite. Your note is not the place to settle past issues with your tenant. The only purpose this letter serves is to give notice to your tenant of their end-of-lease date and provide a record of your written notice. Therefore, be sure to maintain a professional and respectful tone throughout the letter.
- Keep a copy of the lease termination letter for your records. It’s a rental document that all landlords need to have, just in case.
- Don’t forget to include the date in your letter. The date proves that you have met the notice period according to your state laws and the lease agreement between you and your tenant.
- Be sure to request your tenant’s forwarding address so you have somewhere to send the security deposit back to them (if applicable).
- If you don’t hear from your tenant about the final walk-through, follow up with a call or email as a friendly reminder.
Frequently Asked Questions
Can a lease be terminated without notice?
Typically, the tenant needs a 30 or 60-day notice before lease termination. Check your state laws for specific information.
Can either party terminate the lease?
In most states, tenants have the right to terminate a lease under certain conditions, including active military duty, violation of habitability, or right-of-entry violations. Again, check your state laws for more detailed information.
What happens after notice of termination?
The tenant has a specific timeframe, determined by state law and your rental agreement before they need to vacate the property. You should state the amount of time the tenant has to vacate the property in the lease termination letter.
Should you mail or give the notice in person?
You should always send the document via certified mail when corresponding information such as a lease termination letter. This way, the sender may receive a mailing receipt and an electronic verification when the recipient receives the document. If you need it, certified mail proves that you gave adequate notice before vacating a property.
Should a lawyer review your lease termination letter before sending it?
It is wise to hire a lawyer to review your lease termination letter. A knowledgeable real estate attorney can highlight and prevent any errors and suggest necessary changes to make your lease termination letter legally foolproof.
Avoid Terminating Tenants with Apartments.com
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