Writing a lease termination letter is key to ending your lease, which is a complex legal agreement, even though signing one is as common as rain. Follow this advice to avoid a potentially expensive misstep.
Get your termination of lease agreement
by Jennie L. Phipps
Jennie has been wrangling words for decades. She specializes in technical topics, including insurance, healthcare fin.
Updated on: August 6, 2024 · 9 min read
Whether you are the tenant or a landlord, breaking a rental agreement early can be expensive and a hassle if you don't do it thoughtfully and legally. A lease is a complex legal document, and breaking it is rarely simple. Start with a smartly written lease termination letter.
Breaking a rental agreement lease most often starts with a lease termination letter. A rental agreement lease termination letter, or written notice of termination, is needed when a rental or lease agreement between a landlord and tenant is ending. The landlord or tenant may send a lease termination letter to the other party, but if both the landlord and the tenant agree, then they can both sign and share a mutual lease termination agreement. Sending a simple lease termination letter is even a good idea if the rental agreement is ending at the prescribed date because it avoids confusion over the terms of the lease.
Before you write the early lease termination letter, read over and understand the terms of the lease. Lots of people who haven't bothered to read their lease—both landlords and tenants—are shocked when they learn their lease includes provisions they didn't know or understand. One of these is a no-early termination clause. That can make it more difficult, but not impossible, to terminate a lease before the end date.
Rules vary by state and local laws, but in almost every place, someone can legally break a lease early and avoid losing a security deposit or having to pay rent for the duration of the lease in any of the following situations:
If the tenant or the primary breadwinner in the household is a member of the military and is deployed or permanently relocated for a minimum of 90 days, then they can invoke the Servicemember Civil Relief Act (SCRA). This law allows a service member to break a lease if they provide proper notice. All the services will provide legal advice to any member who needs assistance to make this happen. If you are a landlord who is being asked to terminate a lease held by someone who is in the military, run a "military status verification" before proceeding. A landlord who violates the SCRA can face large fines.
In most states and cities, you can break a standard lease if you've been a victim of domestic violence. For this to be enforced, the victim must have an order of protection—or have reported the abuse to officials who provided a signed record of the incident. With this evidence, a tenant can terminate their current lease without incurring any further financial obligation, including losing a security deposit. Some states insist the tenant be current on their rent, and others also require paying the next month's rent. If you are compelled to end your lease, start by writing a lease termination letter that includes this key documentation.
Landlords who own property in places where a domestic violence lease release is not the law shouldn't automatically reject the notion. Domestic abusers can be violent people and could cause harm to the rental unit or further harm to the victim. Consider allowing the victim to break the lease, even if there is no law requiring you to do so.
If tenants have a prolonged period of no heat, water, or another factor that makes the home uninhabitable and the landlord has failed to make repairs despite multiple written notices from the tenant in most—but not all—areas, this is grounds for breaking the lease. It is sometimes known as "constructive eviction." A tenant who is a victim of this should document the time and duration of the problems. It's not enough to say, "We didn't have heat sometimes." The tenant must be able to say in their lease termination letter: "We had no heat on these (specific) dates when the temperature was below (xx) as verified by the National Weather Service."
Landlords who tolerate objectionable behavior from other tenants on their property or those who regularly enter the rental without giving adequate notice jeopardize their rights. How much notice must a landlord give to enter a property? Usually 24 hours. A landlord who commits or sanctions illegal activity or breaks local laws on the premises can also give tenants an out to break the lease. All of this is known as a "breach of quiet enjoyment."
For tenants, the definition and enforcement of this breach can be tough, so it's a good idea to get legal advice before attempting to write a lease termination letter over these issues. Take pictures and document conversations with your landlord about these problems, including the date of any conversations. Laws concerning taping vary among states, but videotape can be very powerful evidence.
Landlords, if you receive a breach of quiet enjoyment complaint, investigate promptly and attempt to resolve the issue. Respond to the lease termination letter by informing the tenant of the steps you are taking to fix the problem. Offer an estimate of how long it will take. Tenants can dramatize these problems, and a judge who reads their lease termination letter and other materials may not look kindly on the landlord who tolerates such problems.
A tenant with a health issue and/or a disability may be covered under the Fair Housing Act (FHA). The federal FHA requires landlords nationwide to make "reasonable accommodations" to comply with a request from a tenant to change the regular rules and policies to help them manage their disabilities. In some cases, the need to move to a retirement or nursing home can be a legitimate reason to break a lease. A tenant who needs such accommodation should start by getting their physician to write a letter explaining the situation and share that letter with their landlord, attaching it to their lease termination letter.
Landlords are wise to respond promptly to fair housing complaints. Failure to respond appropriately to a lease termination letter, including complaints that the government finds legitimate, can result in expensive penalties.
Just because a tenant took a job that requires them to move doesn't mean they can break their lease. Most states require the landlord to make a serious effort to re-rent the unit and credit the new rent toward anything owed on the previous lease. This is known as "mitigating the damages."
Tenants in this situation should write a lease termination letter that explains their situation. Offering the landlord assistance in finding a new tenant is a good idea, although the landlord doesn't have to accept any new tenant that is proposed. Be sure to include your new address in correspondence so that if you do get your money back, the landlord will know where to send it.
If a tenant doesn't qualify for any legal reasons to get out of their rental agreement, there are other possible ways to avoid paying significant sums.
Here are some of them:
Speak up. A tenant should talk to the landlord, or, if you are a landlord, talk to the tenant. Explain the situation. You can do this in a lease termination letter, but also it can be wise to speak in person about ending the rental agreement. Circumstances can change. You may be surprised to learn that ending the lease agreement is agreeable to both parties involved.
Sweeten the deal. Landlords who are eager to end a rental agreement relationship with a tenant may succeed without an eviction notice by offering money to help a tenant locate another acceptable rental unit. Kicking in moving expenses can make leaving a good idea for the tenant. Likewise, tenants can appeal to the landlord by offering to allow the landlord to keep the security deposit or by paying an extra month's rent.
Finding a new tenant. Finding a new tenant to sign a new lease is a good approach for a tenant who wants out of their lease. Subleasing is another possibility, but a sublease may not let a tenant out of lease obligations. It might be an illegal situation, or the landlord might not permit it. Tenants proposing these situations must be sure they understand the details and can fulfill their end of the proposal.
Making any of the above offers should be part of a lease termination letter. How the letter is written and presented is very important. The rules differ depending on where you live. A complex lease termination letter may require help from an expert. This goes for both a tenant and a landlord looking to provide written notice.
The basics of a lease termination letter are similar nationwide whether you are a landlord or a tenant. Regardless of who is ending the lease, the termination notice should include:
In New York, where rental agreements are particularly numerous and landlord-tenant laws are especially tough, the lease termination letter should make very clear the type of lease agreement being terminated. The specifics of the lease agreement determine a number of things, including the length of the proper notice to vacate the premises.
It is also very important to specify clearly what the motivation is to terminate the lease. If the landlord's or the tenant's motivations appear discriminatory, either party could face tough legal action anywhere, but especially in New York.
keys to the landlord as they sit on opposite sides of a desk. They each have a pen in hand." width="1000" height="667" />Breaking a rental agreement can be difficult whether you are a tenant or a landlord. If you are the landlord, include an early termination clause in your lease and make sure it addresses all the things that a tenant needs to know in case they want to end the rental agreement. If you are a tenant, read the lease and study the early termination agreement. Follow its terms as carefully as you can. Don't expect to get out of the rental agreement without paying some fees and possibly, penalties. You may also lose your entire security deposit.
Put as much of the details in writing as you can. If you have never done this before, it is helpful to start with a lease termination letter template or a sample lease termination letter. There are free lease termination letters available to use as a template or a sample letter. Successful lease termination letters are supported by good documentation. Have copies of any evidence you attach to your written notice.
A landlord needing quick possession of rental property can avoid many problems with managing rental property if they choose to rely on a month-to-month lease rather than fixed-lease terms. Month-to-month tenancy offers flexibility. A landlord simply gives the tenant a written 30-day notice by certified mail. The move-out date is generally the end of that 30-day, move-out-date period. Otherwise, the month-to-month lease automatically renews.
Breaking a lease is no slam-dunk. Go about it carefully.
Find more Legal Forms and TemplatesThis article is for informational purposes. This content is not legal advice, it is the expression of the author and has not been evaluated by LegalZoom for accuracy or changes in the law.
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