When you want to inform the residents of your rental property that you’d like to terminate their lease, you can’t just tell them to leave. They need a period of notice and a formal communication regarding the lease agreement termination. In other words, you need to send them an official end-of-lease letter.
But why is this so important, and what are the requirements surrounding an end-of-lease letter to the tenant from the landlord?
You’ll find all the answers here. This guide covers the dos and don’ts of lease termination letters, as well as a handy template you can use to construct your own letter. We’ve also included some tips for writing effective and professional end-of-lease letters.
What Is an End of Lease Letter?
An end-of-lease letter is a letter to the resident of a rental property. It is used to communicate the termination of the lease agreement of the property they reside in. It generally serves as a notice to vacate the property after 30 days (or longer, depending on the date stipulated in the letter).
Residents must be given at least 30 days’ notice, even if being evicted for not paying rent. This is especially relevant when the property is tied to the federal government through a mortgage or subsidy.
Why Is a Lease Termination Letter Important?
A lease termination letter is important because it lets the residents of the property know that they need to prepare to move. It gives them time to make arrangements for accommodation elsewhere before the move-out date. It also provides a clear timeframe in which this has to happen.
Likewise, if the resident has decided it’s time to move on, they are obligated to inform you with a lease termination letter from the resident to the landlord. This gives you time to advertise the property again.
If you are the property owner but use the services of a property manager, they may send out the end-of-lease letter on your behalf.
When to Send an End of Lease Letter to Your Resident
When is the appropriate time for an end-of-lease letter to your tenant? That is tied to the reason behind it. And there are several reasons why you may want to terminate a lease. Here are some examples:
- The end of the original lease term is approaching.
- You have decided to sell the property.
- The resident has violated the terms of your lease or withheld rent payments.
- The property has been condemned.
- You need to reassign the property you’ve been renting out, for another use (such as moving into it yourself).
If the original lease term is drawing to a close but you’re open to renewing the lease, you can stipulate that in the end-of-lease letter. If there is no possibility for renewal, you must make that clear. In the case of other reasons for lease termination, send out the letter as soon as you are aware of the situation.
Don’t wait until the last moment. This will cause unnecessary stress to your residents and limit the time they'll have for making alternative accommodation arrangements. Check local and state laws to ensure that you meet any requirements they have around lease terminations.
What to Include When You Write a Lease Termination Letter
Regardless of your reason for terminating the lease, there are a few things that every end-of-lease letter should contain. In any end-of-lease letter to the tenant from the landlord, be sure to include the following:
- The resident’s name, and the address of the property they are renting from you. This leaves no room for error or confusion if the resident is resistant to moving out.
- A clear statement that the original lease agreement is coming to an end, or if it is not, that you are terminating the lease agreement early. Include the date that the lease ends. They will not be able to claim that they were unsure of when the termination took effect.
- The reason for termination of the lease. Unless the original lease is drawing to a close and the tenant is aware of this, they may be surprised by an end-of-lease letter. Even if they should be aware of it, they may have forgotten that their lease is coming to an end soon.
- The notice period (when you expect them to move out from the property). This serves as an early lease termination and a written notice letter. written notice If you are willing to renew the lease or shift to a month-to-month tenancy lease, state this clearly in the letter. If you intend to do a property inspection before that date, state that too.
- Your name and signature, and ‘owner’, ‘property manager’, or whatever best applies to your situation. This makes it official and prevents unnecessary arguments over the validity of the end-of-lease letter.
- Ask the resident to sign and date the letter, and return it to you. They must then be furnished with a copy. This will prove that the resident was duly informed of the lease termination. It can be presented as evidence should the resident later claim they were unaware of the lease ending.
What to Avoid When Writing a Lease Termination Letter
There are also a few things you should not include in a notice of termination of lease. What seems like a simple task (terminating a lease) can become very complicated when you make these common mistakes.
- There’s no room for obscure terms or verbose phrases in an end-of-lease letter to your resident. Don’t say more than is strictly necessary. Keep a lease termination letter as simple and concise as possible.
- Don’t say things like:
- “You may need to move out of the apartment”
- “I think I have to end the lease”
- “You’ll need to move in about a month”
These are just a few examples of ambiguous and confusing wording. Saying things in this way gives the impression that you are unsure of what you are asking. It could also give residents the idea that you are open to negotiation when you are not.
- Avoid unnecessary details, as well as emotional language. The tone should be formal and straightforward, and the overall design of the letter should be, too.
End of Lease Letter Template
These two end-of-lease letter templates are generic examples that will help you structure your end-of-lease letter. Remember to include all details about the specific property in question. Be clear and concise, so the letter is easy to read and understand.
Each of these end-of-lease letter examples is suitable for a specific situation. Choose whichever lease termination letter template seems most appropriate for your needs, and adapt it accordingly to suit your requirements.
When Terminating Due to Violations of the Lease Agreement
Dealing with lease violations is one of the unfortunate responsibilities of a landlord/property manager. This is an example of the letter you’ll send out. But be aware that a lease termination letter is not necessarily the same as an eviction notice. Consult local laws for more guidance on how evictions are regulated in your area.
NOTICE OF LEASE TERMINATION
Tenant Name: __________________
Address: ______________________________
Date: __________
You are hereby notified that the lease agreement dated _______ for the above-mentioned rental property will be terminated on _______. The reason for this termination is the following:
This was a violation of the following section/s of the lease agreement:
You are to vacate the property mentioned above on or before the date given herein for the termination of the lease. You have the whole of the 24 hours of the termination date to vacate the premises of the above dwelling. The property manager will contact you to arrange an inspection of the property prior to that date.
PROPERTY OWNER/PROPERTY MANAGER
Signature: ____________________
Acknowledge receipt and understanding of the contents of this end-of-lease letter, with your signature and the date, below.
Tenant Signature: _____________________ Date: ____________________
When Terminating a Tenant’s Lease Because You’re Selling the Property
If the property is being sold, residents must be made aware of this at the earliest opportunity, with a letter similar to this.
NOTICE OF LEASE TERMINATION
Tenant Name: __________________
Address: __________________
Date: ___________
You are hereby notified that the lease agreement dated _______ for the above-mentioned rental property will be terminated on _______ as the property owner intends to sell/has sold the above property. Therefore, no renewal of the lease can be considered.
You are requested to vacate the property mentioned above on or before the date given above for the termination of the lease.
PROPERTY OWNER/PROPERTY MANAGER
Signature: ____________________
Kindly acknowledge receipt and understanding of the contents of this lease termination letter, with your signature and the date, below.
Tenant Signature: _____________________ Date: ____________________
More Helpful Tips
Here are some more helpful tips for writing an end-of-lease letter.
Think Ahead
If you have included a lease termination clause in the lease agreement, an early termination will prevent any legal argument from the resident.
Keep Your Cool
Don’t allow the lease termination letter to become a list of grievances. A lease termination letter serves merely to give notice of the termination of the lease. Regardless of any problems the resident caused while staying there, this is not the time or place to focus on that.
Don’t Be Vague
Vague language will only confuse your resident and cause delays. Avoid phrasing the termination of lease with language that leaves room for interpretation. State everything plainly and provide a date for vacating the property.
Remain Professional
The end-of-lease letter should not serve any other purpose other than terminating the lease. Refrain from using it as a chance to be sociable and discuss unrelated matters. Keep it professional. If you’d like to stay in contact after they move out for social reasons, ask them in a separate conversation.
RentCheck Streamlines the Move-Out Inspection Process
When it’s time to terminate your rental agreement with a resident, you’ll send them an end-of-lease letter. If the decision to move has come from the resident, they’ll be writing a lease termination letter to the property manager/owner. But whatever the case, there’s one more step to follow before the move.
A move-out inspection will alert you to any damages that the resident is responsible for. It will also give you an idea of what the property needs before you can rent it out to another tenant. But if you used RentCheck for the move-in inspection, you can also generate side-by-side comparison reports to see exactly what deductions and maintenance is necessary.
RentCheck streamlines your inspection processes by allowing residents to perform their own inspections directly within the app.
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