What is a Lease Termination Letter + Free Template

The time has come, and your renter's lease is ending. However, you have no intention of renewing the terms. Whether the renter was always late on rent or you've decided to sell the property, a lease termination letter is a necessary part of the process.

The good news is, a lease termination letter is straightforward and helps clarify everything for both landlords and tenants. Here's what to know, where to start, and what to include in a lease termination letter.

What's a Lease Termination Letter?

A lease termination, sometimes called an “end of lease letter,” is written notice from the property manager or landlord to the tenant to inform them their lease is about to expire. The document also states that the lease will not continue after a set date that the landlord determines.

A move-out notice, or notice to vacate, is a similar document provided by the tenant to the landlord. The notice states that the renter does not plan to renew the lease and sets the date to move out. Landlords should request a move-out date to plan, paint, and prep the property for new renters.

Lease termination letters are often sent at the end of a lease term. You may decide to take the apartment off the market, renovate and raise the rent, or find the tenant unreliable and prefer to find a new renter.

Lease termination letters can also be used if the tenants violate the terms of a lease arrangement or fail to pay rent. Your city or neighborhood may also experience new zoning codes or ordinances, or the apartment may have been damaged during a storm or inclement weather.

Why are Lease Termination Letters Recommended?

Even if a landlord and trustworthy tenant are on friendly terms, lease termination letters are always necessary. They ensure both the landlord and tenants are aligned on the day the lease ends and expectations.

Lease termination letters may be used if you're not renewing the lease because you want to sell the property, the tenant is habitually late with the rent, or the premises are unlivable due to weather.

You may also use a lease termination letter if the tenant does not want to pay a rent increase. You can use this free template to write a rent increase letter.

Some tenants will violate their lease, causing you to terminate their lease early. In this situation, landlords need a legal Notice to Quit Letter that outlines their violation and decision to end their lease.

If you are evicting your tenant, you’ll need a different letter. Get the scoop and a free Eviction Notice Letter template.

A lease termination letter provides a record of the lease ending in the case of any issues or misunderstandings. The renter cannot claim they didn't understand the terms or dates involved when it's in writing.

When to Send a Lease Termination Letter

Landlords need to give renters plenty of time to receive the lease termination letter and respond with any questions.

• For tenants on month to month lease, 30-days notice is recommended
• For fixed lease tenants, choose 30, 60, or 90 days
• The sooner you can send a lease termination letter and allow the renter to prepare, the better

You should also check local housing laws before sending a notice, as you may be required to give tenants a set period of time.

What to Include in a Lease Termination Letter

You may know all about how lease termination letters work and why you need them, though you may not know what to include in them? The process is straightforward with this free template.

• Name of Tenant
• Your Name
• Today's Date
• Date of the lease ending
• Reason for lease termination
• Ask for the tenant's new address
• Whether or not the renter can prevent the termination, like paying rent or complying with rules
• Set up a time for the move-out inspection
• Request for a forwarding address to return the security deposit or for future communication

The move-out inspection is an essential part of the lease termination process. A move-out inspection allows the landlord and a tenant to walk through the rental unit together and note any damage or violations, like unapproved paint color. Depending on the lease terms and situation, a landlord may request immediate changes for the tenant to get their security deposit back.

There may be grounds for the landlord to keep the security deposit if the tenant refuses to make changes or the lease terms dictate the security deposit was forfeited based on the inspection findings.

Lease Termination Letter Template

[Landlord Name]

[Landlord Phone Number / Email]

[Property Address]

[Today's Date]

[Tenant Name]

[Tenant Address]

The first paragraph should detail the termination of the lease, including the date and reasons for lease termination. Include any information on whether the tenant violates their lease, but you are willing to renew it if they catch up on rent or fix the issue.

Use the second paragraph to discuss the move-out inspection. Remind your renter about the initial walkthrough when they signed the lease and attach a copy. The document will outline any pre-existing damage or issues. Beyond normal wear and tear, the renter may be liable for anything not listed on the inspection.

Remind them periodically about the move-out inspection and require the tenant to respond within a specific amount of time.

Before you send the letter, check your local laws. Some areas require the tenants be present during a walkthrough and that they occur within a set period of time. You may also be required to add specific information in the termination letter based on your area.

Here is an example of a lease termination letter template to use and customize as needed.

Dear [XXX],

This lease termination letter is to inform you that the lease for [XXX], which was signed on XXX, will terminate on XXX and will not be renewed. For your reference, I have included a copy of the lease agreement for your reference. (Landlords: please choose one of the following to include in your lease termination letter)

• I am choosing not to renew the lease.
• You are in breach of your lease agreement (add any information on whether or not they may fix the issue for a chance to renew the lease).
• I am selling the property.
• I am undergoing extensive renovations and repairs.
• The property is not liveable due to (a natural disaster/weather/etc.)
• I am leaving for military duty.
• You have not adequately prepared for the premises.

We need to conduct a walkthrough and move-out inspection of the property. We are including a copy of your move-in inspection for your records. Please respond if any of the following dates and times work before (XXX Date):

• Date and Time 1
• Date and Time 2
• Date and Time 3

Please send a mailing address for future communication and to receive your security deposit. Thank you, and please get in touch with any questions.

Sincerely,

[XXX]

Final Thoughts

A lease termination letter eliminates confusion and misunderstandings between you and your tenant, protecting you if the renter claims you never told them you weren't renewing their lease. You can put together a lease termination letter in minutes and repurpose it for all of your tenants with a little tweaking. Good luck!