Moving out from your apartment or from that place you are renting for your small business—some hate it while others see it as a new window of opportunity to start fresh and anew. But before you start packing your stuff, you better let your landlord in on your plans first or else you just might find yourself in a bad situation. Moving out from the place you are currently leasing comes with a lot of responsibility! You have to plan everything accordingly and make sure that your decision is final especially if you initiated the plan of terminating the lease.
First things first, you have to set a meeting with your landlord first and then start drafting your basic termination letter. Your letter will be the formal paper trail that properly documents that you followed the correct protocol with regards to ending your lease. Now, you might find yourself confused with a lot of things regarding lease termination letters and that is okay! We are here to extend help and let you in on a few tips and tricks about writing these documents. We even uploaded a few sample termination letters just for you! Ready? Keep reading!
Commercial Lease Termination Letters
Simple Commercial Lease Termination Letter
Landlord Lease Termination Letter
Basic Commercial Lease Termination Letter
Commercial Lease Termination Notice Letter
Tenant Commercial Lease Termination Letter
Standard Lease Termination Letters
Sample Lease Termination Letter
Lease Termination Letter Notice
Program/Lease Voluntary Termination Letter
Landlord-to-Tenant Lease Termination Letter
What Is a Lease Termination Letter?
A lease termination letter is needed whenever a lease agreement between a landlord and a tenant needs to be ended in a professional and polished manner.
There are two ways on how both parties can end the lease and end their obligation to each other.
- If one of the parties, either the landlord or tenant, want to end the lease, the party that decides to end the lease should provide the other party with a notice of termination letter.
- Both parties come to a mutual confidentiality agreement that they want to end the lease agreement for good. In this case, a lease termination agreement is usually signed by both parties.
Basic Elements of a Lease Termination Letter
A notice of termination letter will usually include the following terms:
- Landlord – This refers to the person who owns the property being leased.
- Tenant – This refers to the name of the person who rents and pays the property.
- Original Lease Agreement – A statement from the original lease agreement such as name, start of of the lease, and the date when the agreement would end. One should also take note whether the lease is over or if the lease was broken.
- Proposed Vacate Date – This refers to the date when the tenant verification plans to move out of the property and turn in the keys to the owner.
- Forwarding Address – This is the address where future notices and mail would be forwarded, as well as the security deposit if the landlord decides to send it via mail.
- Reason for Termination – Including brief explanation as to why there is a need to end the lease.
When to Use a Lease Termination Letter
There is a need to make use of a lease termination letter if at least one of the parties involved in the agreement wants to end the lease due to a few circumstances. One of the parties might want to end the lease early wherein an early lease termination letter will be used. Another circumstance might be that one of the parties might not want to renew the lease as there are times when a lease will automatically be renewed unless proper notice is given.
In the event where the landlord is evicting the tenant, a 30-day eviction notice should be given. This eviction notice will serve as the warning for the tenant. A trail of paper documents leading up to the eviction can help avoid any confusion and can be used as evidence should there be any legal actions taken against one of the parties involved.
Common Situations for Lease Termination
Some of the most common situations where one may choose to end a lease are the following:
- Choose to sell the property.
- Property is foreclosed.
- Enhancements and repairs that might take long.
- Area covered by property will be used by the government or private sector (for public library or new building).
- A police investigation report will be conducted by authorities.
- A natural disaster that caused major damage to the property making it inhabitable.
- Several complaints against a tenant forcing landlord to kick him/her out of the property.
- Relocating to another state for personal or work-related reasons.
- Tenant is looking forward to a fresh start.
- Living conditions turned into hazardous over time.
- Constant repair estimate and maintenance making living or leasing the property inconvenient.
- Health problems.
Ending a Lease
Lease Agreement Ended by Tenant
A lease agreement ended by a tenant is one of the most common scenarios. When a tenant has decided to not renew his/her lease or has decided to end the lease earlier than what is stated in the lease agreement, a notice is to be handed out to the landlord at least 30 days before the planned vacate date. It would be more formal and professional to send the notice via registered mail as this ensures a receipt that would prove that the meeting notice has been delivered. However, if you think that the registered mail will take too long to deliver, you can email the notice or hand deliver it yourself.
In cases where a lease is ended earlier than expected, the tenant may look for someone else to assume the lease or opt to pay a fee or continuously pay the rent amount until the lease is over. The provisions regarding fees and other payables with regards to early lease termination is usually stated in the lease agreement contract.
Lease Agreement Ended by Landlord
There are also circumstances wherein a landlord would be the one who will choose to end a lease. In cases where a landlord is forced to terminate the lease due to several complaints against the tenant, there should be a paper trail that documents all of the said complaints against the tenant. This will include any incident reports as well as warning letters issued by the landlord leading up to the decision of termination. If everything has been well documented, legal actions against the landlord may be avoided and the documents will serve as evidence. A tenant may write an appeal letter to the landlord to ask for an extension.
If the reason for terminating the lease is due to a natural disaster or circumstances that may prevent the landlord from fulfilling his duties to the tenant, the landlord needs to issue a notice to the tenant regarding the termination and ensure that he/she has ample time to look for a new property to lease or rent.
Apartment Lease Termination Letters
Apartment Residential Lease Termination Letter
Early Termination Letter Templates
Sample Early Lease Termination Letter
Domestic Early Lease Termination Letter
Early Lease Termination Letter Sample
Automobile Lease Termination Letter
Termination Letter for Automobile Lease
Termination Letter of Motor Vehicle Lease
Automobile Sample Termination Letter
Writing a Lease Termination Letter
Whether you will be transferring to another country, state, or if you just bought your own house, you have to take care of the place or property you are currently leasing. If you are the tenant, you have a responsibility to the place that you rented out as you have signed an agreement or contract agreement regarding staying on the property. This is why it is important that you notify the landlord properly regarding your plan of vacating and the reason/s why you need to do so. Giving proper notice gives the landlord enough time to look for someone who will lease the property and ensure that business continues as smooth as possible.
Typically, a lease agreement would state the amount of time that the tenant has before you are allowed to leave the property. By drafting a termination letter and handing it to your landlord, you protect yourself from any dispute and misunderstandings that may arise.
So how do you write a lease termination letter?
First of all, just like any formal letter, your lease termination letter must have a date. It is one of the most important items in your letter. Basically, there are two dates that appear in your letter: (1) the date when you wrote the letter or when the landlord was notified, and (2) the date when you plan to vacate the premises of the property.
The sample letter should be written in detail with intentions clearly stated. Being direct to the point is extremely important for these letters. There is absolutely no need for you to make use of fancy words as this just might confuse and have confusions arise. Simple and straightforward language is going to be more effective.
One more way of making your letters remain effective? Stick to your point and avoid rambling or else you will lose the attention of the landlord reference. Immediately say what needs to be said. By doing so, misinterpretation is avoided and you will definitely leave no questions in the landlord’s mind.
Make sure that the letter includes all of the basic elements of a lease termination letter. Include whether the lease is over or if you are going to end it earlier than stated in the lease agreement.
Tips for Terminating a Lease
Keep communication with your landlord open.
You want to make sure that you communicate everything to your landlord. You may call for a meeting and discuss everything in detail. During the meeting, you can ask for a letter of recommendation from him/her as some landlords recommend that you have one handy for the next time you rent an apartment.
If you are leasing a commercial space, you might want to opt for downsizing the amount of space that you are leasing. This way, you get to keep your current address while paying for a smaller amount of rent.
You can learn more about commercial lease termination letters through the following links:
- What to Include in a Commercial Lease Termination Letter
- Sample Commercial Lease Termination Agreements
Tenant to Assume
A ton of times, landlords would much prefer that you have someone assume your rights for tenancy rather end the lease early and pay a corresponding fee due to early lease termination. By doing this, you are more likely to avoid having to pay the fee and at the same time, you help your landlord carry on with his/her business as smoothly as possible.
Formatting Tips for Lease Termination Letter
- Keep your letter to at most just one page.
- About three short paragraphs will be good.
- Keep the alignment of your letter to the left. This way, it will look more polished.
- Make sure to keep the font size between a 10pt to 12pt. This font size is just right size and will definitely not strain the eyes.
- A font style in the Serif family will be most appropriate for this type of letter.
- Keep the margins of your page to at most one inch (1″).
We hope you enjoyed reading our article today and we hope that you get to apply what we have shared with you once you decide that you want to move out from your apartment or that place you are currently leasing for your business.
Want to learn more about termination letters? Worry not! You can check out the following links for more details and samples:
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