Businesses make a ton of decisions—good ones, bad ones, easy ones, and of course, the difficult ones alike. Financial difficulties is actually one of the circumstances wherein businesses make a very difficult decision. They need to consider a lot of different factors that is costing them money. One of the factors they consider letting go or finding an alternative for is the place they are renting out.
A ton of times, when a company or a business is about to close or is on the verge of closing, they usually take care of the commercial lease if they are renting out a commercial space. Going through the commercial lease agreement is the first priority of the business owner. By doing so, they will have a better idea about how to terminate the agreement such as if early termination is allowed or otherwise.
If you find yourself in this kind of situation, you may want to start drafting a commercial lease agreement termination letter. In this article, we will be sharing with you how to terminate your commercial lease and what should be included in the letters that you are drafting. You may also check out the agreement samples that we have included. You can make use of these samples as a reference if you find yourself having a hard time coming up with the right words to say. Keep reading to find out more.
Simple Commercial Lease Termination Letter
Landlord Lease Termination Letter
Basic Commercial Lease Termination Letter
Writing Your Commercial Lease Termination Letter
Just like any termination letter, when it comes to writing commercial lease termination letter, there is no need to sugarcoat anything. You have to make sure that it is brief and that you go straight to the point. To make sure that you get a better picture about how to write a commercial lease termination letter, we will break it down for you part by part.
The header of your commercial lease termination letter is composed of the following:
- Personal details: This will include your name, designation/position in the business, business name, and business contact number.
- Date: The date you will include in your letter will pertain to the date when you wrote the letter.
- Recipient’s details: This part will include the recipient’s name, position (if available), and address.
Subject Line (Optional)
This part of your letter is optional. However, choosing to include this makes it easier for the recipient to understand what your letter is all about. You may even choose to go directly to the subject line instead of starting your letter with a header. This helps in making your letters brief. You can put your personal details such as your contact details after your signature or typed name.
If you are using a subject line, you may also opt to skip this part. The salutation is pretty basic. Your cover letter salutation can be the generic “Dear” followed by the last name of the recipient.
Body of the Letter
The body of the letter can be divided into two parts: introductory paragraph and concluding paragraph.
In this paragraph, you will directly state that the sample letter serves as your notice that you will not be renewing your lease with the landlord or that you are ending your lease earlier than the expected date. The reasons you will be giving need not be in detail. A brief explanation of your reason is good enough. You will also be stating in this paragraph when you are planning to vacate the place you are leasing and when you will be returning the keys. If possible, you can also state when the lease will be ending according to the agreement you have signed. In case you have broken any terms and conditions stated in the written agreement, you may also state what you have broken.
Let your landlord know how he/she can get in touch with you in case he/she has queries or any information that is needed to be shared. Do not forget to also thank your landlord for giving you the opportunity to lease their space for your business.
- Closing greeting
- Typed name
Lease Termination Notice Letter
Tenant Lease Termination Letter
Tips for Terminating a Commercial Lease
Communicate with your Landlord
You want to make sure that your landlord is aware about your plan of terminating the lease. Before writing the letter, you may want to set up a meeting with him/her where you will discuss your reasons and any consequence that you need to face. You do not want to just surprise your landlord directly with your letter.
More often than not, your landlord is already aware about the struggles that your business might already have. Through your meeting, if possible, you can ask for a little consideration such as lowering the payments just a little bit or ask for payment arrangements. However, if they do not allow such, it’s high time for you to start considering other options.
Find an alternative tenant
It is pretty common to look for someone who can take over the tenancy of your lease. This is a great option especially if your landlord is strict with the duration of your lease. So instead of ending your lease early, you can suggest someone or another business who is willing and able to take over your lease.
Downsize the amount of space being leased
If possible, you can suggest that you will lessen the space that you are leasing and ask for a quote if how much it will cost. If it is possible, then that would be great because there is no need for you to transfer to a new location, which means that your existing clients need not to look for you somewhere else.
Now you know just a tad bit more about what a commercial lease termination letter is. To get a hold of the samples that we have, you can simply click on the DOWNLOAD button and follow through with filling out a captcha, clicking on the VERIFY button, and clicking on the DOWNLOAD button once more. You may opt to choose just one to download or you may also choose to download all of the samples as they are all downloadable for free. If you need more information about termination letters, you can check out our guidelines to termination letters and check out more termination letter templates on this very website.
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