Ideally, no landlord wants to evict their tenants from their property before the end of the lease period. However, on a few occasions, a landlord may want to evict a certain tenant due to various reasons. Nonetheless, when a landlord decides to terminate the tenancy before the lease period expires, they must have a termination lease clause as a backup.
What is a Rental Agreement Termination Letter?
A Rental Agreement Termination Letter is a document to officially terminate a lease agreement due to varied reasons. A rental agreement termination letter is very important as it highlights some of the reasons why the landlord is ending the lease. Often times, people tend to confuse the rental agreement termination letter with notice to eviction. While the notice to eviction or quite gives the tenant a notice to quit, a Rental agreement termination letter goes beyond the notice. It not only allows the landlord to notify the tenant but also gives them the power to start eviction proceedings immediately if the tenant is doing something illegal or destroying the property.
Format for Writing a Rental Termination Letter
A Rental Agreement Termination Letter is a formal document hence should be structured appropriately.
The following is a step-by-step guide on how to organize your letter to make it official:
Sender’s address information
First and foremost, you need to write the sender’s address information at the top of your letter. This should include your name, address of the property you have been renting, and contact information. Note that the sender can either be the landlord or the tenant.
After the sender’s address, you must indicate the date of writing. This will help in proper record-keeping purposes. As a tip, always make sure you record the exact date on which the letter is written.
In this section, you will mention the name, address, and contact information of the receiver. This should then be followed by an official salutation. For instance, you can use ‘Hello,’ or ‘Dear.’
Introduce your letter by mentioning the reasons why you are terminating the rental agreement. Make sure your reason is strong enough to make an impact. Otherwise, you risk facing the consequences as per the rental agreement. Additionally, you need to reference your reason(s) to the lease clause that permits you to terminate the agreement.
The body paragraphs are the longest part of the rental agreement termination letter. Here, you will discuss the date you would want to do a walk-through inspection of the property. Also, you can request the tenant to give you their new address so that you can send them the security deposit after taking care of the damages.
Moreover, you can indicate whether the tenant should vacate the rentals in a good or broom-clean condition. If you are a tenant, you can ask in the letter the dates on which you expect your security money to be returned.
Conclude your letter by appreciating the other party for giving you such sample time during your landlord-tenant relationship. This will make you part ways on a positive note. Finally, you can add a complementary clause, sign, and name.
Reasons for Terminating a Rental Agreement
The majority of landlords want their tenants to abide by the rental agreements until the end of their tenure. However, there are some cases where a landlord can decide to revoke the agreement. That being said, the following are some of the common reasons that may force a landlord to terminate a rental agreement prematurely.
- If the tenant fails to pay rent as agreed on
- If the tenant violates a clause in the rental agreement
- When the tenant breaches a responsibility or duty as stipulated by the law.
- If the tenant keeps a pet such as a dog contrary to the no-pets clause
- What to include in a rental agreement termination letter
A typical rental agreement termination letter should include the following pieces of information:
- The terms and conditions of the rental/tenancy agreement
- The amount of rent and when it was due
- The name of the participants (the tenant and the landlord)
- The occupation limits, i.e., the adults who signed into the agreement
- Pet clauses
- The frequency and mode of maintenance such as repairs, cleaning, etc.
- The person responsible for paying utilities
- Addresses of the property.
Sample of a Rental Agreement Termination Letter
[Name of the sender]
[Address of sender]
[Contacts of the sender]
[Date of Writing]
[Name of the receiver]
[Address of the receiver]
[Contacts of the receiver]
This letter is to formally inform you that I will be terminating our rental agreement effective 1st October 2020. I intend to relocate to a new place after getting an indefinite job transfer. I must admit how much I enjoyed staying in your rentals. By far, they are the best residence in the whole region.
I do believe that my records show that I have fully paid all the outstanding rent balances to date. Well, according to the rental contract agreement, I am glad to report that I have taken good care of your rental premises as per our agreement. That being said, I can boldly say that the premises are in their good and rightful conditions. As per the clause on contract termination, I do understand that I owe you $450 or premature termination of the agreement. However, I intend to pay this penalty before the end of next month.
Also, note that I will be expecting the full return on the security deposit as specified in our rental agreement the subsequent month after the penalty has been settled. I am more than willing to share testimonies with future clients. If you have a question, please don’t hesitate to reach me through 515 5559990 or [email protected]. Thanks very much for your time.