This is a contract that aims to end a lease prematurely. It is mainly employed when an issue arises to necessitate a change of address by the tenant, or either party violates the terms of the tenancy. Some circumstances that may warrant a lease termination include a change of job locations, loss of financial fortunes, non-payment of rents, and the reduction in the business fortunes. Either the landlord or the tenant may initiate a lease termination. This termination may be implemented via a verbal notice or in line with the existing state laws and contract policies.
Types of lease termination letters
There are two main kinds of lease termination letters. These are:
Early Lease Termination Letter
This one is drafted by a tenant to a landlord. It aims at canceling a rental agreement prematurely. Its implementation or acceptance is dependent on the concurrence of the landlord. As such, it is not really final as the landlord will still have to weigh the implications of such a move before issuing a final stand.
Eviction Notice or Notice to Quit
In sharp contrast with the ‘Eviction Notice or Notice to Quit’ originates from the landlord rather than the tenant. The letter aims at terminating a lease agreement prematurely or issues an eviction order altogether. Unlike the ‘Early Lease Termination Letter’ above, this one is final and may not always be subject to any further negotiations.
Lease termination letter template
How to terminate a lease?
Follow these five simple steps to terminate a lease:
Step I: Read your Lease Agreement Keenly
Before you attempt to terminate the lease, take some time to read the lease agreement keenly. All agreements have a clause that provides the grounds and the procedures for termination. This is necessary as any other route will often constitute a breach of contract that may be rendered null and void.
Step II: Notify the other Party of your Intent
As a matter of courtesy, it is necessary that you notify the other party of your intent to terminate the lease prematurely. It is a good business practice not to take your partner by surprise. Moreover, you never know. You might have to return to your current partner for business at a later date.
Step III: Make any Negotiations
Before going ahead with your termination, give the other party a chance to speak up. Let them voice any concerns or make any concessions if need be. Be willing to negotiate. The chances are that your partner did not even know that you were uncomfortable with the terms of the lease.
Step IV: Draft a suitable Lease Termination Letter
If you have to press on with your termination, you will now have to draft a suitable lease termination letter. We have already stipulated that there are two kinds of letters. These are the ‘early lease termination letter’ which originates from the tenant, and the ‘eviction notice or notice to quit,’ which is drafted by a landlord. Choose the one that suits your position and proceed to draft it.
Step V: Serve the other Party with the Notice
Lastly, serve the other party with the notice. In case either party is unwilling to accept the letter and abide by it, you may have to take some legal actions. The precise actions you take are dictated by the state you reside in. This may require a visit to the relevant state office.