How to Draft a Comprehensive Rental Agreement Ending Letter
Getting to Know the Process of Rental Agreement Terminination
There are a multitude of reasons that may cause a landlord to end a rental agreement for an apartment. The tenant may no longer be able to afford the rent, or the building may be undergoing extensive renovation. Regardless of the cause, both landlords and tenants must understand the legal process of ending the rental agreement.
According to the Landlord-Tenant Act, a residential landlord must provide the tenant with a notice of termination no less than thirty (30) days in advance of the end of the rental term. This is generally considered to be thirty (30) days before the next rental payment is due. A written notice is not always necessary, however. In many cases, a verbal notice will suffice. If this method is used, both the landlord and tenant should be able to agree on the process.
In most commercial leases, the landlord is required to provide the tenant with one hundred twenty (120) days written notice of the termination of the rental agreement. With both residential and commercial rental agreements, however, the parties may be able to shorten this notice period through contract. For example, if both parties agree in writing that the landlord need only give thirty (30) days prior notice to end the agreement, then that will generally be sufficient .
The notice of termination may be delivered by hand, registered or certified mail, e-mail or any other means agreed upon by both parties. Regardless, however, of the method of delivery, it should be hand-delivered where possible and, where not, it should be sent via certified or registered mail. If the tenant vacates the premises before the notice is received, it is the responsibility of the tenant to ensure that the notice actually reaches his or her person. The best practice is to have the tenant sign a written receipt for notice of termination.
While a landlord may be able to terminate the rental agreement at the end of the term regardless of whether the tenant has breached the lease, a landlord is generally unable to terminate the rental agreement in the middle of the rental term. If the tenant is not paying rent or if he or she is creating a disturbance for other tenants, a landlord may be able to terminate the rental agreement. Evictions are generally handled by the court system and should not be attempted without hiring an attorney with experience handling these types of cases.
The Building Blocks of a Rental Agreement Ending Letter
A rental agreement ending letter is a legal document and should contain specific information to be effective. The first thing that should be included is the date the letter is being issued. In most states, the initiating party is required to physically sign the document; regardless of the date the letter is being issued. The full names of the landlord and the renter are also important items that must be included. The current address of the rental unit must be included in the letter (i.e. the same as the original rental agreement). The current intended date of the end of the rental agreement must also be included (i.e. this date may precede the date on which this letter is being issued).
The ending letter should state the reasons for the termination of the rental agreement. If the termination of the rental agreement is in accordance with the terms of the original rental agreement, this should be clearly stated so there is no misunderstanding. A statement of civil reasons for the termination may be included; but care should be taken when making any personal remarks to avoid legal action for defamation.
Important Legal Implications and Tenant Rights
From a legal perspective, you may wish to be on firm ground when it comes to terminating an agreement by giving notice. A rental agreement is considered a contract between the landlord and tenant that carries obligations for each party, which are both legal and moral. In the same way you would not wish to break an agreement with a business partner, you do not want to break it with your landlord or tenant, even if you plan to honour the lease to its eventual end. A rent agreement or lease is considered valid when it meets certain conditions, including the following: When a rental contract occurs, the tenant is legally obligated to pay rent, and in turn the landlord is legally obligated to provide housing. Unless a court intervenes (because of a conviction for example) or the tenant requests early termination (which occurs more often than you think), there are few allowances for breaking a lease before the time has come. It is not uncommon for a tenant to request the end of a rental agreement via a letter or email with little notice. Few states have laws that require tenants to provide notice of their intent not to renew a lease, but many do. In general, however, it is standard practice that leases are terminated when a written notice is provided 30 days in advance, signed by the tenant. The repercussions of not providing proper notice of intent not to renew differ by state and by lease. Many leases include an option for early termination, which if adhered to protects a tenant from legal action. If the tenant simply leaves without notice there are ramifications for breaking an agreement. A landlord in the US can sue a tenant for the actual amount of damages for not providing notice, as well as the undisclosed amount of lost rent. As many tenants present a letter or email requesting the landlord honor their request for early termination, it is wise to either stipulate that notice must be given 30 days prior to terminating a lease, or adhere to this expectation should a tenant end up not renewing. If a dispute over adequate notice arises, ask your tenant to provide proof of when they agreed to the early termination.
Step-by-Step: Crafting the Structure for a Rental Agreement Ending Letter
Formatting your rental agreement ending letter may seem like a small task, but it’s a crucial step in maintaining professionalism and clarity. When you write to your tenants to inform them that their rental agreements are coming to an end, there are a few tips you should keep in mind regarding the appropriate structure as well as the level of formality necessary to convey your message. The first essential formatting element is using the correct salutation to begin the letter. Using their name is the best way to personalize the letter. Since the tenant will be reading the letter, this simple approach holds a great deal of power. Ensuring that you include their name in the salutation also shows professionalism. While it could be tempting to use the phrase "to whom it may concern," this does not offer the same type of professionalism, and, frankly, it could hurt your relationship with your tenant. The next format-related guideline is to keep the letter concise and to the point. You do not want your letter to be overly long in an effort to cover all the details of the rental agreement ending process. In addition to being distracting, it can cause the tenant to lose sight of the overall purpose of the letter: to inform them that their rental agreement is ending. Write professionally, but don’t fuss over every little detail. The goal is simply to alert them to the impending end of their rental agreement. An additional tip that can increase the effectiveness of your rental agreement ending letter is to keep it consistent. The last thing you want is for the format of the letter to vary greatly from one tenant to the next. This could make the letter confusing to read. Using the same template can help you avoid this problem. When it comes to wording, as well as length, you may be tempted to adopt an overly formal tone. In reality, this could have the opposite effect than the one you are after. Of course, remaining polite and respectful is critical, but eschewing dry formalities will help you get your tenant’s attention. The content of your rental agreement ending letter should be fairly straightforward, especially if you’ve rented to the same person before. The reason this is so important is that it helps to avoid confusion.
Common Errors To Avoid When Writing a Rental Agreement Ending Letter
Common mistakes to avoid
When it comes time to write a rental agreement ending letter, there are certainly a few mistakes you will want to avoid while doing so. For example, if you have a tenancy agreement that expires at the end of August, you will want to give them until the end of August to move out. A letter that terminates on the 15th would be seen as lacking clarity. While we are sure you’re aware that landlords want the property vacated by August 31st, we have seen attorneys make this mistake in the past, and it is certainly a common mistake. Our advice is to be clear in your letter by stating you want them out by August 31st, and if your lease ends at that point , there should be no reason to extend it any further. Another common mistake that we have ran into is forgetting to include tenant signatures. Should they dispute the situation down the road, saying that they were not aware the lease was over, you may find that no amount of legal research can help you. Not giving enough notice is another big mistake made when ending rental agreements. In some states, a landlord is required to give a certain amount of notice (in the state of Wisconsin, it’s 28 days) before terminating a tenancy. Make sure to check the regulations in your state before sending out a termination letter simply because the lease ends. It may be too late for them to find a new place and you will be stuck with them.
A Sample Rental Agreement Ending Letter
[Today’s Date]
[Landlord’s name]
[Landlord’s address line 1]
[Landlord’s address line 2]
[Landlord’s city, state, and ZIP code]
[Landlord’s contact telephone number]
[Tenant’s Name]
[Tenant’s Address Line 1]
[Tenant’s Address Line 2]
[Tenant’s City, State ZIP Code]
Dear [Landlord’s Name],
This is a written termination of my lease agreement for 1234 Main Blvd, Apt. C. This will provide the 30 days’ written notice that this agreement requires on my part. My landlord-tenant relationship for the above-referenced property will terminate on _______ (date).
I will return the property and all sets of keys to you by _______ (time) on _______ (date).
Thank you for your prompt attention to this matter.
Sincerely,
[Tenant’s Name]
[Tenant’s Signature]
How to Handle Responses and Next Steps
In some cases, the landlord or tenant may have a response to the rental agreement ending letter. These responses may include questions, requests for clarification, or negotiations on the terms of the ending agreement. In this instance, it is important to address any concerns and answer questions from the other party as quickly and clearly as possible. This will ensure that both parties remain on the same page and can help to avoid lengthy discussions or debates later on. The goal in reaching an agreement is to resolve the issue without eviction or trip to court, or to put all of the proper safeguards in place to ensure that the process is as quick and easy as possible. Keep in mind, however, that some landlords or tenants may not respond promptly to a rental agreement ending letter. This is often the case when the lease or rental agreement terminates without any further action required from either party. In this instance, the only next step for the landlord or tenant will be to wait until the day in which the agreement officially ends. When both parties are in agreement about the end of the rental period , a simple final meeting may be the only meeting required to end the relationship. This meeting should include the return of keys, a walkthrough of the property, and a final reconciliation about the security deposit. If the tenant is leaving on very positive terms and does not expect any problems with the return of the security deposit, a signature and handshake might be all it takes to finalize the ending of the rental agreement. If the tenant feels strongly that they have earned complete return of the security deposit or if it is possible that there will be a dispute about the deposit, it can be wise to have a rental agreement ending letter signed and dated on the last day of the tenant’s tenancy. This letter can be kept on file by both parties and will serve as proof of a full and complete ending of the rental relationship. A rental agreement ending letter does not always signal the end of the relationship between landlord and tenant. Thus, the majority of landlords and tenants are likely to have more questions following delivery of these documents.