A rental termination letter, also known as a lease termination letter, is a legal document allowing you, as a landlord, to cancel a property lease following state law.
This document is mainly used for month-to-month or 1-year agreements. Since the rental termination letter is used to end the tenancy agreement, the name of the legal document can vary depending on the length of the notice given before the termination of the rental agreement. For example, the common practice is to give 30 days’ notice to vacate the premises, but some states require you to give 60 or even 90 days’ notice.
If you need to end the rental agreement early, you should give written notice within a specific time frame. Although some leases do not require written notice, creating a rental termination letter can protect you in case of later disputes.
Also, you can use a lease termination letter to inform the other party about the exact date when the property needs to be vacant. You can also use this legal document if you plan to increase the rent but the current tenant does not want to renew the contract under the new terms.
Even though some people believe that termination and eviction refer to the same thing, they do not. The termination letter refers to the mutual decision of the parties not to continue with the lease agreement. Therefore, a tenant can leave the rental unit without being evicted.
Eviction refers to the court process and lawsuit if a terminated tenant fails to leave the premises. An eviction notice is often handed out to tenants before the case goes to trial.
This article provides a detailed analysis of the rental termination letter. It will explain the different types of rental termination agreements and equip you with a comprehensive guide on writing a high-quality lease termination letter. You will find everything you need to know about this legal document below.
Important: If you plan to renovate or sell the property, you can also use the rental termination letter. You can even use it if you are unsatisfied with your current tenants.
Rental Termination Letter Template
While creating a rental termination letter is not difficult, you may be worried about missing some crucial details that every lease termination letter should have. A rental termination template could be the perfect solution if that is the case. We have provided free downloadable templates to create customized termination letters quickly and easily. All you have to do is download the template, fill in the required information, and the letter is ready to be sent.
Rental Termination Letter By States-8669nx3ag-03-23
Types
Not all rental termination letters are the same. There are several different types, including the ones mentioned below:
Early lease termination letter
An early lease termination letter is a request to end the current lease earlier than planned. You can request early lease termination, but your tenant usually requests it. You can charge the tenant the security deposit amount. If they want to leave the premises early, they must pay the total rent to be released.
Late rent notice
You can write a late rent notice to your tenant if you wish to inform them that the rent is past due, which means it needs to be paid instantly to avoid eviction.
Eviction notice
The landlord writes an eviction notice if a tenant violates a term or condition of the lease contract. Tenants receiving an eviction notice must fix the issue immediately or leave the premises within the specified days.
Commercial lease termination letter
A commercial lease termination letter is used when a landlord leases property to a company or brand that uses the premises for business purposes.
5 Easy Steps to Terminate a Rental Agreement
If you want to terminate a rental agreement but do not know how to do that correctly, the five steps below will allow you to terminate the lease agreement quickly:
Step 1: Review the lease
The first step to any rental agreement termination is to review the lease/contract. Most month-to-month leases come with a pre-defined minimum period for agreement termination. A standard lease is the most common contract for renting and is valid for a fixed period. On the other hand, a sublease agreement is a contract used by the tenant who sublets the property to another tenant. A state-required notice period is used if this information is not included in the lease.
Step 2: Communicate with the other party
Communication is crucial when it comes to agreement termination. As a landlord, you must inform the other party about the intent to terminate a lease. This step will allow the parties to find the best deadline for vacating the premises.
Step 3: Write a rental termination letter
The next step involves writing the rental termination letter. The document’s purpose is to provide a binding document that obligates you to act on the terms outlined.
Step 4: Send the notice
An eviction notice informs the tenant to leave the premises by the date specified to avoid court proceedings. The notice can be sent in either of two ways:
- Certified Mail (with return receipt): USPS gives a receipt to the sender after the notice has been delivered.
- Certificate of Service: the sender receives a certificate as proof that the letter was sent.
Step 5: File an eviction
You can file an eviction lawsuit and take the case to trial if the tenant refuses or fails to vacate the premises after the due date has passed.
How to Write a Rental Termination Letter
Although writing a rental termination letter is not difficult, it is vital to include all the essential details for the letter to be valid. Here are several tips for writing a good lease termination letter:
Identify the parties
The document must include detailed information about the parties if you write the termination letter as a landlord. For example, you should include your name and your current address. In addition, the tenant’s information should include the name of the party who rents and pays for leasing the premises.
Refer to the original agreement
The rental termination letter also needs to mention details from the original agreement. In this section, it is necessary to mention when the parties first signed the original agreement and when the lease will be terminated.
Specify the date
The exact date for vacating the premises should be included. The date can be before the expiration of the original lease agreement or at the end of a lease term.
Explain the reason for the termination
Wrongful termination can lead to legal issues and even a trial, so it is best to include the reason behind terminating the agreement. Some of the possible reasons for terminating the agreement include the following:
- Choosing not to renew the lease
- Lack of proper care for the premises
- Breaching of the clause
- The property is being sold
- An occurrence of a natural disaster
- A call to active military duty
Include a forwarding address
A forwarding address is a current postal address that allows the tenant to contact you. Moreover, the forwarding address is provided to the tenant for any future notices they may want to send you.
Add signatures
No contract or legal document is valid without the signatures of all parties included, so it is essential to add signatures.
Rental Termination Letter Sample
(Landlord’s name)
(Landlord’s current address)
Dear (tenant’s name),
We are notifying you that the lease agreement dated (date of the original agreement) for (address of the leased premises) is being terminated. We kindly ask you to vacate the premises
before the end of the lease term, on (date of termination), by (time of termination)
at the end of the lease term, on (date of termination), and by (time of termination)
We are terminating the lease due to the following reason:
I refuse to renew the lease agreement
You refuse to renew the lease agreement
You did not care for the premises accordingly
You breached a clause that is a part of the lease agreement
The property is being sold
Other: ______________
We kindly ask you to send all future notices regarding your property lease to (landlord’s name and current address).
Please feel free to contact us using the information provided above in case you have questions about the rental termination or if you need further assistance.
_______________________ _______________________
(Landlord’s signature)
(Tenant’s signature)
Best Practices to Consider
Here are four additional practices that can help you create an effective rental termination letter:
Provide enough notice
If you know you need to terminate the lease early, writing and sending the lease termination letter as soon as possible is advised. Even if you have more than 30 days to give notice, providing the tenant enough time to prepare is always a better option.
Keep it simple
Lease termination letters do not have to be complex legal documents. However, they should be straightforward, with an accurate reason for the lease termination.
Edit and proofread
After you create a draft, always go back to edit and proofread your letter for any spelling or grammatical mistakes. All information must be accurate before you send the rental termination letter.
Deliver the letter appropriately
Every legal document must be delivered appropriately, including the rental termination letter. Some leases come with a pre-defined way of delivering the lease termination letter. If that is not the case, the letter should be delivered via Certified Mail (USPS) or as a Certificate of Service.
Consequences of Not Writing a Termination Letter
If you fail to write and deliver a rental termination letter, the process can have different consequences for you, including the ones mentioned here.
If you fail to deliver the termination letter within the state-required notice period, the process can result in numerous legal fees and financial penalties. These costs can destabilize your financial position and even force you to sell your property to cover the high fees.
Not delivering a termination letter on time can also lead to an automatic lease extension, putting you in an inconvenient situation to have a tenant you are not satisfied with for another year or more.
Finally, tenants can sue you if you do not deliver the lease termination letter on time and take the case to the local housing court. The housing trial is expensive due to the obligation to hire a lawyer and cover other court fees. Therefore, you will lose your money if the case goes to court.
Required Termination Notice
Every state has a different period defined as the required termination notice. The most common is 30 days’ notice, but some states have 60 or even 90 days’ notice period. Here is an overview of the state-required termination notice in more detail:
| AL § 35-9A-441 | MT § 70-24-441 |
| AK § 34.03.290(b) | NE § 76-1437(2) |
| AZ § 33-1375 | NV NRS 40.251 |
| AR§ 18-17-704 | NH § 540:11(2) |
| CA § 1946 | NJ § 2A:18-56 |
| CO § 13-40-107 | NM § 47-8-37 |
| CT § 47a-23 | NY § 232-b |
| DE Title 25 § 5106 | NC § 42-14 |
| FL § 83.57 | ND § 47-16-07.2 |
| GA § 44-7-7 | OH § 5321.17 |
| HI § 521-71 | OK § 41-111 |
| ID § 55-208 | OR § 91.070 |
| IL 735 ILCS 5/9-207 | PA § 250.501 |
| IN § 32-31-1-1 | RI § 34-18-37 |
| IA § 562A.34 | SC § 27-40-770 |
| KS § 58-2570 | SD § 43-32-13 |
| KY § 383.695 | TN § 66-28-512 |
| LA CC 2728 | TX § 91.001 |
| ME Title 14 § 6002 | UT § 78B-6-802 |
| MD § 8-402 | VT § 4467 |
| MA § 186-15B | VA § 55.1-1253(A) |
| MI § 554.134 | WA § 59.18.200 |
| MN § 504B.135 | WA (D.C) § 42–3505.54(a) |
| MS § 89-8-19 | WV § 37-6-5 |
| MO § 441.060 | WI § 704.19 |
| WY No statute |
Frequently Asked Questions
How to send a lease termination letter?
Many leases include details on how a lease termination letter should be sent. However, if you cannot find any information in the original agreement, it is best to go with one of the two possible options:
Certified Mail (USPS): the landlord receives a receipt after successfully delivering the letter.
Certificate of Service: the letter is hand-delivered, and the recipient signs they have received the letter.
Do I need to write a lease termination letter?
Some rental contracts need to be terminated earlier than planned, which is when a lease termination letter is used. Also, this letter can be used to terminate leases that are automatically renewed unless notice is given. Finally, a rental termination letter allows the parties to discuss the issue officially.
How do you write a 30 and 60-day notice to move out?
To write a 30 or 60-day notice rental termination letter, include the following:
The landlord’s information
The tenant’s information
The date of the notice
The move-out date
The reason for termination
Forwarding address
The date of the notice and the move-out date need to be at least 30 or 60 days apart.
How to get a lease termination letter?
Anyone interested in getting a lease termination letter can make an appointment with a lawyer. Nevertheless, hiring a lawyer can be expensive, so a template is often a better option for writing a lease termination letter. The templates, like the ones we have outlined above, include all the relevant information and will be affordable.