Regardless of how happy you are in your rental unit, the time may come when you have to move out. But this may be earlier than your rental agreement stipulates. Do you really have to write a formal letter terminating your lease? And what does an early lease termination letter from the tenant to the landlord entail?
A lease termination letter can afford you legal protection, so this is not something that you want to ignore.
Do you need help with writing a lease termination letter? We explain the process of terminating your lease early, and how to write the letter itself. We’ve also included a handy sample letter that you can use as a basic template.
What Is an Early Lease Termination?
An early lease termination is when you end your rental agreement sooner than the end date stipulated in the lease agreement. This is done through an early lease termination letter from the resident to the landlord/property manager.
It’s unlike an eviction notice which a landlord or property manager may send when the renter has neglected to pay rent. That demands that a renter vacate the premises for failing to meet their obligations in their lease. A lease termination letter states that the renter has decided to leave.
When your lease ends, you may decide to move on rather than renew the lease. In such a scenario, you’ll receive a letter stating that your lease has ended, and enquiring whether or not you wish to renew the rental agreement. You will then respond with your decision.
An early release from the lease agreement is something different. It’s a written notice that you are moving out before the lease ends.
Why a Resident Should Write an Early Lease Termination Letter
So, why is an early lease termination letter from the resident to the property owner/manager important?
Your lease ends on a specific date. This will be specified in your lease document. When you sign the lease, you agree to reside at that rental property and pay the agreed-upon rental amount for the entire duration of the lease term.
There might be a clause in your lease setting out the procedure for signing a new lease after the current one ends. There might even be a clause dealing with early terminations. But the fact remains that the property owner/manager believes you will be staying and paying rent until the lease end date is reached.
The lease document you signed is a legal document. Therefore, breaking that agreement requires a termination notice, a formal document known as a lease termination letter. It will start the process of terminating your lease early, the right way.
Process of Terminating Your Lease Early
Before we get to what you have to include in the lease termination letter, let’s look at the process of exiting a rental agreement.
1. Send the Letter to Your Landlord/Property Manager
The first step is to send a letter to your landlord or property manager. This must be a formal document, stating your intention to terminate your rental agreement. You may deliver it in person, or email it, but given the gravity of the situation, certified mail might be a better choice.
2. Negotiate Terms
Negotiate the terms of your early lease termination. This is where you will enter alternative options (such as subletting) for their consideration, if applicable. You must keep in mind that you are causing inconvenience by ending the lease ahead of time. Try to offer solutions that work for everyone involved.
3. Ask to Sublet the Property if Necessary
Perhaps you must be out of state for an extended time, but don’t wish to relinquish the rental agreement. An example would be a military deployment. Or perhaps the property manager/lease agreement states that you are not allowed to end the lease early.
In such cases, subletting the property to other residents temporarily may be the answer. However, you may not do so without permission from the property owner/manager.
4. Hire a Lawyer
Don’t forget that lease agreements are legally binding documents. Terminating them early can sometimes lead to unforeseen legal issues. If you anticipate such problems or anticipate resistance on your landlord’s part, it may be best to hire a lawyer to help with the negotiations.
5. Document Everything
Whether or not you use a lawyer, it’s important to document everything. This will prevent any disputes down the line. Documenting the process protects you legally, should the property owner/manager later claim that you gave no notice of your intent to move.
How to Write an Early Lease Termination Letter
Follow these simple steps when you write a lease termination letter.
1. Date and Address
Begin your letter with the rental property address and the date. Although this may seem obvious to you, don’t forget that this is a formal document and a legal protection. The address confirms which property is being discussed, and the date is the starting date of the notice period.
2. Salutation
Next is the salutation. It helps if you have a good relationship with your landlord/property manager, as they may be more agreeable to you ending the rental agreement early. But even if you have a very good relationship with them, refrain from using too informal a greeting or a nickname to address them here.
3. Statement of Intent
Your statement of intent clearly states that you are terminating the current lease agreement. This is necessary so that they are not confused about your intentions. This should be worded formally, as with the rest of the letter.
4. Reason for Early Termination
Although your original lease agreement may not expressly ask for it in the lease terms, it is customary to give a reason for the early termination.
Are you terminating the lease due to job relocation? Perhaps you have lost your job and must move back in with your parents (due to a lack of finances) while looking for a new job. In such cases, property owners/managers are usually very understanding.
5. Reference to Lease Agreement
Check the current lease for the lease termination date and reference it in your letter. Also, check for an early termination clause. This will specify any penalty fees that may be applicable. Even if your lease includes this, your property manager may waive it at their discretion.
6. Security Deposit Details
Reference the security deposit you paid. State the deposit amount you paid and the date you paid it. Give instructions about how/where you would like this deposit returned to you. Security deposits are typically returned within 14 to 60 days, depending on the local laws and the terms of your rental agreement.
Irrespective of the reason for early lease termination, costs will still be deducted for any property damage or unpaid rent. However, if you have kept up with your cleaning responsibilities, attended to minor maintenance, and paid rent faithfully every month, you will have every reason to receive the deposit back.
7. Proposed Termination Date
Don’t forget to include your proposed move-out date. This is the day that you will be vacating the rental unit. You must give adequate notice to allow for a property inspection before you leave, as well as find new residents to rent the property.
The results of the property inspection will determine whether or not you maintained the property as required. The property manager will be looking for signs of property damage. If found, you will be held liable for the costs of repairs.
Fortunately, property inspections don’t have to be inconvenient, when you use the RentCheck app. It lets you perform your own move-out inspection, and send the inspection report to your property manager, quickly and easily.
8. Offer to Assist With the Transition
Check the lease terms regarding early termination. You may have to meet certain requirements before leaving. If there is no such clause, you can still offer to help find a new resident and assist with the transition.
9. Request Confirmation of Receipt
Request a confirmation of receipt of the letter. This is your legal protection that you did indeed inform the property owner/manager of your intention to move. Also, provide a forwarding address where you may be reached after moving out. If your new address is still undetermined, include other contact details.
10. Name and Signature
End the letter with your full name and signature. This will indicate that you have written the termination of lease letter yourself, and of your own volition. If you have requested someone type up the letter for you, you must read through it before signing it, to ensure it is a true indication of your intention.
What Is the Proper Notice Period for Lease Termination Letters?
If your property owner/manager accepts what you have set out in your early termination of lease letter, you will enter into a mutual lease termination agreement. This is more likely if you have met all other requirements of your lease agreement, and have given proper notice.
Even a simple lease termination letter that does not terminate the rental agreement early, should include a proper notice period.
State law varies on what this period is, however, notice periods are, in general, 30 days. If you give notice of your intention to move a full calendar month ahead of time, you will most likely satisfy legal requirements on this issue. But check your local and state laws to be sure about this.
Early Lease Termination Letter Template
Do you find the idea of lease termination letter writing stressful? Don’t worry. Just use our early lease termination letter template.
Please take note that this lease termination letter is just an example. You should reword it to meet your unique situation and adapt it by entering your details and dates. However, the basic layout can work for most early lease termination situations.
EARLY TERMINATION OF LEASE
Date: _______, 20__
Address: ______________________________
Dear ____________________ (Property owner/manager’s full name)
This letter serves as an official written notice that I/we intend to terminate my/our lease agreement with you, dated _______,20__ for the rental property at _____________________________ (rental unit address). I/we intend to vacate the premises of the above-mentioned property on the _________, 20__.
The lease on this rental property is due to end on the _______,20__. The reason for this early termination of my/our lease is _____________________________.
If you need further information, contact me at ________ (phone number/mobile phone) or at _______ (email address). Should you require assistance with the transition to a new tenant, kindly inform me as soon as possible.
A security deposit of $_____ was paid on the _______, 20__. If satisfied with the property’s condition and all other terms set out in the lease, please return this deposit to ____________________________ (details of where you’d like the deposit to be returned to/paid).
Please contact me should you wish to arrange a property inspection ahead of the move-out date.
Yours sincerely,
____________________ (your full legal name)
____________________ (your legal signature)
Kindly confirm receipt of this letter.
Let RentCheck Handle Your Move-Out Inspection
An early lease termination letter from the resident to the property owner/manager is the first step in the early lease termination process. If you write it in formal language, include all pertinent information, and give an adequate notice period, you shouldn’t have any problems.
But a lot rests on the pre-move-out and move-out inspections. If your property manager is satisfied with the property inspection report, you’ll get more of your security deposit back. You can do this final inspection yourself, and share the inspection report with them, on the RentCheck app.
RentCheck will help you simplify the entire property inspection process so you can move on to new horizons. You can also use RentCheck for the inspections at your new rental property.
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