1. What is a Lease Termination Agreement?
A Lease Termination Agreement is used when a lease agreement between a Landlord and Tenant is being ended.
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.
IMPORTANT
There are two ways to end a lease and get both parties off the hook from their obligations.
- If BOTH parties agree, the Landlord and Tenant may sign a mutually agreed upon Termination Agreement.
- If only ONE party wants to end the relationship, the Landlord or Tenant may unilaterally send a Notice of Termination to the other party.
A simple Notice of Termination or Termination Agreement will identify the following essential elements:
- Landlord: name of the party who owns the Premises being rented
- Tenant: name of the party who rents the Premises and pays the Landlord
- Original Rental Agreement: name, start, and end date of the agreement
- Vacate Date: when the Tenant will move out and leave the property
- Forwarding Address: where to send future notices or security deposit
- Reason for Termination: an explanation for ending the agreement
A Notice of Termination can be used to end an agreement early or to confirm that an expiring lease term will not be renewed.
When do you need a Lease Termination?
A landlord or tenant will often present a lease termination letter to the other party in the lease at the end of a lease term to ensure no confusion on when the property will be vacant. The advanced warning gives the Landlord time to find another renter and provides the Tenant enough time to find a new home.
TIP
Property owners may use a lease termination letter when they want to sell or renovate or if they are not happy with the current tenant.
When the landlord is going through the eviction process with a tenant, a notice or agreement shows the court that the Landlord gave a fair warning. Hopefully, the Landlord has documented all the written letters and notices sent to the Tenant. A good paper trail can save the Landlord time if a judge becomes involved.
3. Why You Should Use a Lease Termination Letter
If you do not use a Notice of Termination Agreement, the court may not sympathize with your situation. The law does not look well upon Tenants who move out without any notice or Landlords who kick out their Tenants without any advanced warning. Society is better off when people can expect that their Rental Agreement for one year will be honored.
Instead of simply leaving, Tenants are expected to have adult conversations with their Landlords about why they need to go. Tenants can offer to sublet the place to another trustworthy person or give the Landlord a chance to fix the heater (if they haven’t already).
Here are some of the possible consequences of not using a Termination Letter.
| Landlord’s Consequences | Tenant’s Consequences |
|---|---|
Loss of Money
| Loss of Money
|
Loss of Time
| Loss of Time
|
Mental Anguish
| Mental Anguish
|
4. The Most Common Situations For Termination
When is a Termination Letter often used?
People often need a lease termination when circumstances change for the tenant or the landlord.
Here are some everyday situations when you must end a lease early and leave before a rental agreement expires.
| Landlord | Tenant |
|---|---|
IMPORTANT
If a tenant violates a term or condition in the lease agreement, the landlord should send an eviction notice telling the tenant to fix the issue or vacate the property within a certain number of days.
5. How to Write a Lease Termination Letter
A simple notice of termination or lease termination agreement will address the following:
- When the Tenant must leave and whether a walkthrough should be done
- Where the Landlord should forward future notices or security deposit
- Why the Rental Agreement is being ended or not renewed
- What are the original start and end date of the Rental Agreement
6. 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 spelling to make sure the information is accurate.
- Keep it clear. Include a precise reason for your termination. For example, leases generally allow a tenant to leave early if the premises are not habitable and the landlord has not made necessary repairs.
- Check the lease for where and how to deliver your letter. Leases often tell you where to give notice and sometimes even specify how you must deliver your letter.
- Do not sit on it. Once you know you need to terminate your lease early, write and send your lease termination letter as soon as possible. If you want to terminate early, it is better to give the other party as much notice as possible.
