A lease termination letter lets a landlord or tenant end a month-to-month lease in compliance with their state’s laws. Either party can send this notice in the middle of a tenancy at will, and the tenant will have a certain period to vacate the property.
Ending a Lease Early
A tenant can request early termination by writing an early lease termination letter, but the landlord doesn’t have to fulfill their request. A landlord may issue an eviction notice if they want to end a lease early for a violation on the tenant’s part.
Lease Termination Letter – By State
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
What Is a Lease Termination Letter?
A lease termination letter lets you end a month-to-month lease as a landlord or tenant. Even if your lease does not explicitly require written notice, using a lease termination letter can protect you in the event of a later dispute. A landlord or tenant will often present this document to the other party to ensure there’s no confusion about when the property will be vacant.
If a dispute arises with your attempt to terminate a lease, the court may not side with you if you didn’t use a termination letter. The law may not favor tenants who move out with notice or landlords who end a lease without proper notice. The standard notice period is 30 days, but it depends on whether you’re the landlord or the tenant and the state in which you live.
Lease Termination vs. Eviction: Key Differences
Explore some of the key differences between lease termination and eviction:
- Initiating Party: Either party can initiate a lease termination while a landlord initiates an eviction.
- Voluntariness: Lease termination is a voluntary choice. During eviction, a landlord can demand the tenant to move out depending on the violation. In some cases, they may give them the opportunity to rectify the situation.
- Reasons: Reasons like mutual agreement or a change in circumstances may lead to lease termination. However, paying rent late or breaking a noise ordinance may lead to eviction.
- Outcome: Lease termination results in a mutual understanding between the parties and a voluntary departure by the tenant. Eviction can result in financial penalties for the tenant and potential challenges for them renting in the future.
State Rules on Required Notice to Terminate Month-to-Month Leases
Each state has different guidelines on the notice a landlord or tenant has to give before terminating a month-to-month lease:
| State | Tenants' Required Notice | Landlords' Required Notice | Laws |
|---|---|---|---|
| Alabama | 30 days | 30 days | AL Code § 35-9A-441 |
| Alaska | 30 days | 30 days | AK Stat. § 34.03.290 |
| Arizona | 30 days | 30 days | AZ Rev. Stat. § 33-1375 |
| Arkansas | 30 days | 30 days | AR Code § 18-17-704 |
| California | 30 days | 30 days | CA Civ. Code § 1946 |
Handling Security Deposits at the End of the Lease
Here are some considerations for handling security deposits at the end of the lease:
- Tenant Responsibilities Before Termination: The tenant must leave the unit in suitable condition, which involves cleaning it and making any minor repairs they’re responsible for according to the lease. They must also prepare to adhere to the landlord’s instructions for moving out.
- Landlord Responsibilities After Termination: The landlord should return the security deposit in full if the tenant adheres to all the lease terms and moves out according to the landlord’s instructions. They should return the deposit within the timeframe specified by state laws, which is usually 14 to 30 days.
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Common Deductions from Security Deposits: The landlord may deduct part of the owed amount if the tenant has unpaid rent or utility bills. Other common deductions include the following:
- Damage Repairs: Any damage exceeding normal wear and tear caused by the tenant is a deductible expense.
- Cleaning Costs: If the tenant fails to thoroughly clean the unit, the landlord may deduct the cost of cleaning fees from the security deposit.
- Unreturned Keys: If the tenant fails to return their keys, the landlord may deduct reasonable costs.
Tenant Remedies and Duties
A landlord usually has 14 to 30 days to return a security deposit. The requirements vary by state, and there may be extended periods if the landlord has to adjust the amount for a partial refund.
If a landlord fails to pay a security deposit back, a tenant can submit a demand letter along with proof of their entitlement to the return. If the landlord refuses to comply, the tenant may have to take them to small claims court.
The tenant should provide a valid forwarding address so the landlord can send the refund properly. Without this address, the landlord may be unable to deliver the returned deposit within the appropriate period.
How to Write (Fill Out) a Lease Termination Letter
The lease notice terminating must be as clear and exact as possible. It is also essential to look at your local landlord-tenant laws to ensure the lease termination adheres to them. Depending on your lease agreement, a lease termination process may vary in complexity and steps.
Parties who want to deliver a simple document can follow these steps to write a lease termination letter:
Step 1 – Check Your Lease Agreement’s Terms
Before starting your lease termination, look at the type of rental agreement you have and the information included. You will find the landlord’s and tenant’s obligations and rights in your lease agreement.
Your month-to-month lease agreement should include the required minimum notice to terminate. If it doesn’t, use your state’s laws.
Step 2 – Name the Parties Involved
Whether you’re the landlord or the tenant, write the names of the parties involved. Record your name and address at the top and address the recipient.
Step 3 – Reference the Original Rental Agreement
In this form section, write when the landlord and tenant signed the original lease/rental agreement and when the lease will terminate. Ensure to include the property’s address.
Step 4 – Fill in the Vacate Date
Write in the date when the tenant should vacate the premises. This date can be either (1) before the expiration of the lease term or (2) at the end of the lease term.
IMPORTANT
For month-to-month lease agreements, the process is simpler, but the landlord must provide a fair warning. This fair notice is 30 days in many states, but some have other requirements. Usually, a landlord can send a termination midterm, as can the tenant.
Step 5 – Provide a Reason for Termination
Legal issues can arise through wrongful termination, so it is best to include a reason in your notice to document your decision.
Step 6 – Include a Forwarding Address
Write where to forward mail, future notices, or the security deposit.
Step 7 – Proof of Service (Optional)
You will need a signed Affidavit of Service if you are not the person serving the termination letter.
The person serving the notice hands the signed letter to the intended recipient, the landlord or the tenant. This affidavit indicates that the party received the notice on a specific date.
Lease Termination Letter Sample
Download a lease termination letter template as a PDF or Word file to start writing your own.
Frequently Asked Questions
What are some tips for writing a lease termination letter?
Here are a few general rules to follow when writing your lease termination letter:
- Proofread for errors. Check dates and the document’s grammar/spelling to make sure the information is accurate.
- Keep it clear. Include a precise reason for your termination.
- Do not sit on it. Once you know you need to terminate your lease, write and send your lease termination letter as soon as possible to give the other party reasonable notice.
How do I deliver a lease termination letter?
You can send your letter through certified mail (USPS). This method will issue a receipt to you as the sender, ensuring a successful delivery. You can also use a certificate of service and have the recipient sign it to prove they’ve received the letter.
What is a lease break clause?
A lease break clause is a provision in a lease agreement that lets the tenant or landlord (or both parties) end the lease before its established expiration date. This clause is usually only applicable under predefined conditions. Not all leases will have a lease break clause, so it’s important you review your lease to determine if it applies to your situation.
