Terminating a lease agreement is a common occurrence between two parties in our day-to-day lives. Examples of these parties are landlords and tenants.
A landlord is a person who owns property such as a house, building, apartment, piece of land, or even real estate which is rented out or leased to an individual or group of people. Landlords are in the business of renting out their properties for profit over some time. Landlords are also called "lessors" of rental properties.
A tenant is a person who occupies a rental property for some time. Tenants are in temporary possession of properties such as a building, house, or land. The term "tenancy' basically means leasing a dwelling in a rental property that rightfully belongs to a landlord. So, you can call tenants dwellers or occupants.
When a landlord leases out rental properties for tenants to occupy, a legal agreement is put in place to authorize such a move. This agreement is approved under the landlord-tenant law which guides the leasing of rental properties. Furthermore, the legal protection and rules governing landlord rights and tenant rights vary depending on the state where the property is located. So, it is very important to get familiar with state laws went renting properties.
In all, there's a possibility that the agreement between a tenant and a landlord can be terminated if there's a bridge of clause or personal terms. So, in this guide, we will introduce you to the best ways to write a lease termination letter.
A lease termination letter is an official letter written by a lessor or tenant to inform the other party of their decision to cancel the tenancy agreement over a rental property. This letter is written at will based on certain situations and circumstances, and it also comes into play if a tenant or lessor has violated a lease clause. Since it's a formal letter, the writer should follow the standard format.
It is highly important to write a lease agreement termination letter in the best possible way. This involves including all required information that will make the lease termination a legally approved one. So, here is what you need to know;
The first thing you need to do when writing a lease termination letter is to provide your address as a sender. This involves providing your name and contact details such as street address and phone number. In the case of a company, the company name and address have to be provided.
The next section of this letter is the part where the date is included. It usually follows the sender's address section. The date the letter was written is vital for record-keeping.
This section provides information about the recipient of the lease termination letter. This includes the recipient's name, the recipient's physical address, and contact information such as phone number & email.
This section includes greeting the recipient in a polite tone such as "Dear Sir/Ma". It is the right thing to do before proceeding to the body content.
This section constitutes the major part of the letter that informs the recipient of the main purpose of the letter. The leased property should be mentioned and all-important dates to be noted. Explain the reason for your decision and apologize accordingly. Also, this section is used to request contact information in case deposit security has to be paid.
This section reassures respect through the use of a polite tone in closing the letter. Words such as Sincerely, Cordially, Regards, among others.
Here are examples of lease termination letter samples and templates;
1388 Lilac Lane, Ramsay MI 49959
Date: 8th December 2020
1383 Calico Drive, Easton WA 98925
Dear [Name of Recipient],
I am writing this letter to inform you of my intent to terminate the lease agreement on the apartment block at [Name of Estate and Location], which was signed on [Insert Date]. The lease agreement was automatically renewing every [Insert number of months].
The reason behind this decision is your violation of our lease agreement [Insert Clause Section], which prohibits the sale of drugs within the premises of the apartment. This violation has resulted in complaints from other tenants within the premises, hence, I would like you to vacate the apartment by [Insert Date], to provide vacancy for other tenants that will abide by leasing agreements.
Kindly provide me with your contact information and new address for refunding any security deposit in case there is any amount of money that should be refunded after proper inspection of the apartment for damages.
I would like to apologize for any inconveniences this might cause you but you are free to contact me for further inquiries about the lease agreement termination.
2156 Indiana Avenue, Waipahu HI 96797
DATE: 14th May 2018
2009 Marigold Lane, Miami FL 33179
Dear Mrs. Yong Butts,
This letter serves as a notice to terminate the periodic tenancy agreement at [Insert Address of Rental Property]. I hereby use this medium to inform you that the last day of the tenancy will be [Insert Last Date of Tenancy] and I will be handing over my occupancy on or before the date.
The Residential Tenancies Act 1986 requires me to give you not less than 90 days' notice to terminate the agreement. After I move out, please mail my security deposit to [Insert Address and Contact Information].
Feel free to contact me if you have any questions regarding the notice to terminate my periodic tenancy agreement. Thank you for your understanding and cooperation.
As discussed earlier, a lease agreement termination letter can be written by either the landlord or the tenant, so here are examples of;
1744 Terry Lane, Orlando FL 32801
1275 College Street, Atlanta GA 30303
SUBJECT: [Lease Termination Letter]
Dear Dr. Amber Hedrick,
I am saddened to write to inform you that I am planning to vacate the flat I occupy currently at [Insert Flat Number, Block Number, and Street Address]. My lease agreement will expire on the 30th of August 2020. I wish to vacate the apartment as soon as I can, as I need to relocate to a new city at the earliest.
Furthermore, I would also like to remind you about the security deposit I paid while renting the flat a few months ago. So, I urge you to kindly forward the sum of money to the same bank account within the specified time.
I appreciate your understanding on this matter. Thank you.
1511 Stewart Street, Indianapolis IN 46204
Date: 15th July 2020
2491 West Street, Holland MI 49423
Subject: Termination of Lease Agreement
Dear Mr. Jerry Kinsey,
I am writing this letter to remind you that your property lease agreement is all set to expire on 30th October 2020. I regret to inform you that I am not willing to renew the agreement any further. The reason behind this decision is because some of my family members will be visiting the City for few weeks and they'll need a place to live during that period.
I have to say you've been a very good tenant, and I appreciate your time within the facility. Right from paying your rent as at when due, and taking good care of the property like it's your home. In case you need a letter of recommendation for renting another property, you are free to contact me. I will be glad to help you with the same.
I hope this notice will give you adequate time to make further arrangements.
I wish you all the best in your future endeavors. Thank you.
Why is a Lease Termination Letter Necessary?
A lease termination letter is necessary because of legal purposes. As a tenant, it is wrong to move out of an apartment without prior notice, while as a landlord, it is also wrong to kick a tenant out of your rental property by warning them. It is important to keep rental agreements intact for the duration of the lease and if there's a need to break such agreement, it has to be done officially.
Therefore, the official way to break a lease agreement is to write a lease termination letter. If this is not properly done, it can lead to consequences such as loss of money, loss of time, and mental anguish. So, it is vital to write a formal lease or rental agreement termination letter before taking this kind of action.
[Name of Sender]
[Address of Sender]
[Contact Information of Sender]
[Name of Recipient]
[Address of Recipient]
[Contact Information of Recipient]
Dear [Name of Recipient],
I am writing this letter to formally inform you that I will be terminating our rental agreement effective 2nd January 2021. I intend to relocate to a new state after getting an indefinite transfer from my workplace. I must admit how much I enjoyed staying in your rentals. It is by far the best housing estate in this region.
I believe my records show that I have fully paid all outstanding rent balances to date. I can also assure you that I will be leaving the premises of your rentals in good and rightful condition.
Furthermore, I will be expecting a full return on the security deposit as specified in our rental agreement. Don't hesitate to reach me through [Phone Number] or [Email Address].
Thanks for your time and understanding.
[Signature of Sender]
[Name of Sender]
The ideal thing to do if you have plans to terminate a lease agreement is to write a letter of lease termination. This is necessary to notify the other party when you want to do so and why you're making such a decision. It also gives the other party adequate time to plan their next move. So, if you find yourself needing to write a lease agreement termination letter, it is vital to learn how to write it formally.
We have provided the necessary tips needed to guide you and to add to that, we've provided lease agreement termination letter samples and templates that can be of help to you. Feel free to download and make use of them.