When shifting into the property, most tenants sign a lease stating they intend to stay at the premises for a certain period. However, the rental agreement also provides the procedure of breaking the lease, including that a notice should be issued in case the tenant or landlord does not intend to renew the lease. The letter should state when the non-renewal will take effect, and in typical circumstances, it should be issued at least a month before the end of the lease period.
The non-renewal lease letter must be direct and concise, and some requirements must be fulfilled to make it valid. The jurisdiction laws may guide this validity, ensuring that your letter complies with the stateโs laws. Where there are no laws, the sender of the letter is free to determine whether the best solution is to renew the lease or not.
This article discusses the non-renewal of lease letters, why you need one, and how it works. We discuss the information you need to include and how it differs from a lease extension letter. We also give a few tips and facts you should know about these letters and provide templates to guide you through making the letter for a non-renewal lease.
Non-Renewal of Lease Letters
A non-renewal of lease letter is written to a landlord or tenant, informing them of the writerโs intention not to renew the lease after the end of the lease period.
Most leases give the recommended time when this notice should be sent, some states are guided by state law, but typically, it is common courtesy to issue a notice at least 60 days before the end of the lease. The notice also allows the landlord to consider offering the tenant a new lease if they are on good terms to adjust the rent and other terms of the lease. If the tenant issues the notice, they should provide their account details where the rent security deposit should be sent.
Alternate names
The non-renewal letter may go by different names depending on the state law where the lease is signed or the standard terms of usage. Some alternate names for non-renewal of lease letter include:
- Lease termination letter
- Notice not to renew a lease
- Letter of non-renewal of lease
Reasons
The non-renewal of lease letter can be issued for a lot of reasons. However, landlords and tenants cannot issue this notice if the intention is to discriminate or retaliate against the recipient.
Some of the reasons why this letter is issued include:
- When the tenant constantly pays their rent late
- The tenant intends to move to a different property
- The tenant has damaged the property beyond the normal wear and tear
- The tenant constantly violates the terms of the lease, like subletting the property when it is not allowed in the lease
- The landlord has a new tenant and intends to lease the property to them
- Where the property management changes or it is bought by a new individual
- Where the property will undergo construction
Free Templates
How Does It Work?
A notice of non-renewal affects the tenant and the landlord; the tenant has to make arrangements to move out, and the landlord may have to look for a new tenant. Therefore, it is required to be careful with the content and details of the letter. All the information provided should be accurate.
You should follow the steps below when writing your letter:
Consult the original lease
The original lease states tenancy terms, such as information about the propertyโs furniture and appliances at the time of leasing, and prescribes the security deposit and other refundable amounts. Consulting the lease helps a tenant know how much to claim, and a landlord verifies how much to refund the tenant. It also helps the writer know the appropriate notice period to issue the letter. Month-to-month leases require a 30-day notice period according to state law.
Draft the letter
Once you have the crucial details, you may now draft the letter. Landlords are not legally obligated to give the reasons for the notice. However, the letter should not be perceived as being issued due to discrimination or retaliation against a tenantโs act. It is considered discriminatory if the landlord issues the notice because of the tenantโs race, gender, or physical disability. It is considered retaliation when the landlord issues this notice of non-renewal after the tenant exercises their rights, like filing a complaint against the propertyโs management. The letter should be sent via mail or email.
Perform an inspection
Once the recipient acknowledges they have received the letter, the landlord or tenant should schedule a time for an inspection of the property. They should use a move-out checklist often included in the lease to confirm the propertyโs conditions and assess the damages that will be deducted from the security deposit.
Tip: When walking through the property, the tenant should inquire how much their security deposit will be and whether there will be deductions based on the move-out checklist. The tenant may make some repairs to reduce the deductions from the security deposit.
Return the security deposit
After inspecting the property, the landlord should assess the damage and deduct the cost of repairs from the security deposit. The remainder should be sent to the tenant once they move out. The period with which the landlord should return the deposit is determined by state law and varies from 14 days after the termination of the lease/when the tenant moves out to a maximum of 60 days. If the landlord does not follow the guidelines instructed by the state law, they can be subjected to fines and penalties.
Lease Renewal Vs. Lease Extension
A lease renewal is used when a tenant intends to continue staying on a property under new terms compared to the original lease. For example, it is typically used when a landlord intends to increase the rent, and the tenant wants to live on the property longer. Once the term of the original lease expires, the new lease takes effect.
A lease extension is used when the landlord adjusts the length of the lease allowing the tenant to stay longer on the property. For example, if the lease was for 12 months, a lease extension may increase the term to 36 months. The extension is in the form of an amendment attached to the original lease. The difference is that, in lease renewal, the tenant and landlord sign a new lease which takes effect once the original lease expires. In a lease extension, both parties maintain the original lease and add an amendment extending the length of the lease.
Information to Include
Since a letter for non-renewal of the lease is an important legal document, some crucial information must be included to make it easier for the parties to enforce it.
You should include the following information in the letter:
Header
The header acts as the introduction to the parties of the lease. It should contain the date and the landlordโs details as discussed follows:
Date
The date indicated on the letter should be the day the letter takes effect. In some jurisdictions, state law stipulates the time the notice should be sent; the date shows when the notice takes effect.
Landlordโs name and address
The landlordโs information should be sufficient to identify them. Whether an individual or a company, their legal name should be stated in the header and their mailing address for contact purposes.
The subject of the letter
The subject of the letter should be why youโre writing the letter. It should state that the writer intends not to renew the lease. It may read like โnotice of intention to vacate.โ
Greetings
The greetings should address the recipient. For example, if written by the tenant, the landlordโs name; if written by the landlord, the tenantโs name. If there is more than one tenant, they should be included as recipients of the letter.
Required notice
The notice should include pertinent details of the lease and the property, which can be found in the original lease. The notice should:
Discuss the property
The propertyโs details should be included in the letter. In addition, the details should include the building and unit number, where possible, and physical address should it be necessary to undertake a site visit.
Termination date
The termination date indicated on the notice should be within the legally stipulated timelines. For example, if the laws require the notice to be issued at least 60 days before the termination date, then the date should be 60 days from the date the notice was issued. The writer should ensure they comply with state laws to avoid legal battles.
Other details
If the writer of the letter is the landlord, they should mention any details of the property that were part of the terms of the lease. Suppose it was a furnished apartment, for example. In that case, the letter may include a list of the furniture before the tenantโs occupation. It may also state that there will be a move-out inspection to check the propertyโs condition. It should also mention when the tenant is expected to vacate the premises. Finally, the landlord should ask for a forwarding address and account details where the security deposit will be sent.
Landlordโs name, signature, and date
The landlordโs name should be indicated at the end of the letter; for a property management company, an authorized representative should sign on its behalf. The date written should be the date the landlord signed the letter.
Important: The tenant should comply with the notice issued by vacating the property when requested. Failure to comply with the notice allows the landlord to issue a notice of eviction, and the tenant may end up paying fines and penalties.
Non-Renewal Lease Letter Template
[Date]
[Landlordโs name]
[City]
[State, Zip code]
RE: NOTICE TO VACATE/ NOTICE OF NON-RENEWAL OF LEASE
[Tenant]: ___________________
This is a formal notice that your current lease for the property at ____________ [location of property] will not be renewed after the last day of tenancy of _______________ [date of end of tenancy].
Please note that you must vacate the property on the last day of your tenancy. You are expected to leave the property in good condition. Further, all the furniture on the property should be left before you leave.
The security deposit to be refunded shall be a remainder after deducting the costs for damages to the property. Remember to communicate your forwarding address for notices and return of security deposit.
[Landlordโs signature] _______________
[Date] _________________________
[Landlordโs Name] __________________
Non-Renewal Lease Letter Sample
June 15, 2018
Pete Hugh,
Georgia 124 St,
San Bernadino, IL5687.
RE: NOTICE NOT TO RENEW LEASE.
Tenant: Emma Holloway
This is an official notice that your current lease for the property at 5556 Bentwood, Mississippi, MI 3987, will not be renewed. The last day of your tenancy will be August 16, 2022.
You must vacate the property on or before the last day of the tenancy period. Please note that the lease stated that the property should be in the same condition as when you moved in, save for everyday wear and tear. Remember to leave all the furniture on the property before you move out, and the keys and other devices used to enter the property. Also, remove all your personal property from the property when you vacate. Any property left behind becomes part of the landlordโs property.
The landlord shall be permitted to conduct a move-out check to assess any property damage. The costs for repair and replacement of damaged property shall be deducted from your security deposit according to state law. Ensure you give your forwarding address for notice and return of security deposit.
Signature: Pete Hugh
Date: June 15, 2018
Landlordโs name: Pete Hugh
When to Send a Lease Non-Renewal Letter to the Tenants?
The letter often states the required notice period for the non-renewal of the lease. Where it does not, general practice dictates that 60-day notice is sufficient. If the lease period ends without the tenant vacating, the lease automatically becomes a month-to-month tenancy. However, the landlord is allowed to evict a tenant that refuses to vacate the property after a notice is issued. While the landlord is not legally mandated to provide reasons for the non-renewal, they need to have good reasons; this limits the protection offered to them by law to particular circumstances of non-renewal.
Things to Watch Out for When Sending a Non-Renewal Lease Letter
While most state laws offer landlords more protection than tenants, landlords are expected to give their tenants sufficient notice to act on the landlordโs decision. As such, notices for non-renewal of the lease, renewal of the lease, or month-to-month leases must be given in good time. This gives the tenant sufficient time to look for a new apartment.
Frequently Asked Questions
Can a landlord not renew a lease for no reason?
Yes, landlords can refuse to renew a lease without reason, as it is not a statutory requirement. However, they are expected to have a just reason for their decision, and the non-renewal should not be discriminatory or retaliated.
What happens if landlords donโt give notice at the end of a one-year lease?
Where landlords fail to give notice, the lease converts to a month-to-month lease where either the landlord or tenant can issue a 30-day notice to vacate.
Can an apartment refuse to renew a lease?
Yes, a landlord can refuse to renew the lease once the lease period ends and with sufficient notice to the tenant.
How long can a tenant stay without a lease renewal?
A tenant that stays in a property once the lease expires becomes a tenant-at-will. They maintain the same tenancy terms as the original lease until it is renewed or they are evicted after being given sufficient notice.