Termination of a Lease Agreement

Leases are contracts which legally bind both sides to an agreement for a specified period of time. However, in many cases, a premature termination of a lease agreement may be sought by either the landlord or the tenant. Early termination can lead to various losses, and in some cases, may lead to a lawsuit or other legal penalties. In general, a tenant may enforce a termination of a lease agreement under the following limited circumstances:

• Periodic Tenancy: A periodic tenancy is a month to month lease, that can be terminated by either the landlord or tenant for almost any reason;
  • In some cases prior notice is required in order to terminate a periodic tenancy, which is usually thirty days;
• Tenancy at Will: Under tenancy at will, either party may terminate the lease at any time, as long as prior notice is given.
  • Tenancy at will is similar to employment at will in that any reason may be used to terminate the relationship, so long as the reason given is not illegal;
• Landlord Violation of the Lease: In situations where the property is inhospitable as set forth in the lease’s requirements or is otherwise uninhabitable, the tenant can break the lease for their own health and safety.
  • It is important to note that most states require a landlord to keep a tenant’s building habitable. If the landlord fails to perform this duty, the law may allow the tenant to terminate the lease; and
• Destruction of Property: Many state statutes and lease provisions commonly allow a tenant to terminate their lease if the premises have been destroyed.

Because a lease is a legally binding document, a tenant generally cannot cancel a lease except under specific circumstances, such as the ones listed above. Oftentimes when the tenant seeks to terminate the lease, a landlord will simply release the tenant from the lease, especially when the tenant can find another suitable tenant to replace them.

However, there is no requirement for the landlord to do this. They could seek damages from the tenant for breaking the lease, such as requiring them to pay a fee to break the lease or the remainder of the money owed on the lease.

What’s a Lease Termination Notice?

A lease termination notice is a written notice from the landlord that is delivered to the tenant, which asks the tenant to take a specified action. The most common action would be asking the tenant to pay rent or leave the premises. A common type of lease termination notice is through a lease termination letter. A lease termination letter is a written notice from either a landlord or tenant to the other party which states that they intend to end the tenancy.

Alternatively, an eviction is another legal process that may be initiated to remove someone from residential or commercial property. However, an eviction requires the involvement of the courts. Further, if a landlord wishes to evict a tenant, they must follow the very strict procedural rules of the state in which the eviction is initiated or their local city.

Another way in which a lease may be terminated is when rent goes unpaid, and the landlord is unable to contact the tenant. In these cases, the landlord may consider an abandonment of a lease without proper notice to have occurred.

If a landlord suspects that a tenant has abandoned their rental lease, there are certain steps that the landlord can take in order to reclaim their property and collect damages from the tenant for any unpaid rent.

Many lease agreements also contain provisions that state that if rent is overdue for a certain period of time or if the tenant leaves the premises without telling the landlord for a specified period of time, then the lease will be considered to be abandoned.

What Should Be Contained in a Lease Termination Notice?

A lease termination notice should include several key pieces of information in order to effectively communicate the intention to end the tenancy. Although the exact contents of what should be included in a lease termination notice differ by state, in general, the notice should be put in writing and contain the following information:

1. The date of the letter: This is important for both the landlord and tenant to have a clear reference point for when the notice was given;
2. The address or description of the rental property: This is to confirm that the correct property is being referred to;
3. The date on which the tenancy will end: This is the most important element of the letter, as it is needed to specify the date on which the lease will end and should be in accordance with the notice period required in the lease agreement or by local laws;
4. The reason for the termination: This is optional, but it would be good to have a reason for termination to be included in the letter as a good reason or cause may be legally required in some jurisdictions;
5. Instructions for the tenant: The notice should also include instructions for the tenant such as paying rent, returning keys, vacating the property by the end of the lease term;
6. Any additional information required: The notice should also mention any additional information that is required according to the original lease agreement, such as the property condition or any other relevant clause. Further, a timetable for conviction should also be concluded, such as eviction with occur after 3 days, etc.;
7. Contact information: The letter should include the contact information for both the landlord and the tenant so that both parties can reach each other if there are any questions or concerns about the termination; and
8. Signature: Finally, the letter should include the landlord’s signature.

Once again, it is always recommended to check the lease agreement, as well as local laws regarding the contents and formatting of a lease termination notice, in order to ensure all of the necessary contents are included in the notice. Also, the lease termination notice is required to be properly transferred or delivered to the tenant. As such, if the tenant never receives the notice, that may result in complications or delays in the lease termination.

What Is the Option to Terminate a Lease Clause?

An option to terminate a lease clause is a provision that is present in a lease agreement that allows either the landlord or the tenant to terminate the lease prior to the end of the original lease term. Importantly, termination notice must still be given in writing, meaning notice requirements are still required, and termination penalties may still occur.

Do I Need a Lawyer for Help With a Termination of a Lease Agreement?

If you have any questions regarding your right to terminate a lease, or what should be present in a lease termination notice, it is in your best interests to consult with an experienced landlord-tenant lawyer in your area.

An experienced and local real estate attorney can look over your lease and help you understand what your best course of legal action is. Additionally, an experienced attorney can also represent you in court as needed, should a private lawsuit be required.