Rental Termination Laws: What You Need to Know
Landlord and tenant laws vary significantly by location, but these laws will always govern how a termination letter should be written. Since a lawsuit may be filed if a tenancy ends too abruptly, it is critical to learn the local rules to avoid a costly mistake.
For a rental agreement to be terminated, advance notice must be provided. Failure to provide the mandated notice may turn a legal notice of termination into an illegal eviction. Legal jargon can be avoided by simply stating, "Please move out 30 days from today."
The location is important. A nationwide law does not address the 50 states, and requirements vary from one county to the next. Common sense rules may apply when a property is located in a different country. Therefore, it’s essential to know local regulations in your area or the area where the rental agreement is established.
Difference in Location In most U.S. states, the majority of rental agreements cannot simply be terminated for any reason. A landlord must have legal grounds to terminate. There are also laws that prevent landlords from terminating leases based on race, gender, age or religion . Even if a valid reason exists for terminating a rental agreement, a specific process must be followed. For example, some states require landlords to pay moving expenses or refund security deposits before a tenant vacates. There are also rules about changing locks. In some states, it is illegal to change locks while a tenant occupies the rental property. If locks are changed, the tenant may be able to sue for damages that would extend the lease agreement. A tenant may not be permitted to break a lease simply because he or she is unhappy with the landlord. There must be legitimate reasoning behind a request for cancellation. An example of a valid basis is harassment or violation of terms set forth in the rental agreement. Landlords should enlist the help of a lawyer if they plan to file for an eviction.
Termination as a Last Resort Termination of a rental agreement should be a last resort. Legal action is rarely the best option when resolving a rental dispute, especially when both parties remain responsible for the agreement. Solutions usually require some give and take.
Circumstances Under Which a Rental Agreement May be Terminated
A landlord has valid reasons for terminating a rental agreement. For example, if a tenant fails to pay rent or utilities due under the rental agreement, a landlord may terminate the rental agreement. Similarly, if a tenant materially breaches the rental agreement and does not cure the material breach within a specified period of time after the landlord provides notice, the landlord may terminate the rental agreement and retake possession under the laws governing termination of a rental agreement. If a landlord intends to sell the property after the tenancy terminates or a landlord intends to return the premises to its condition at the beginning of the lease term, a landlord may provide notice to the customer that their lease is terminated.
If the landlord resides in a property, he may also provide notice to terminate the rental agreement. A landlord can terminate a rental agreement to recover possession of the dwelling for immediate and personal use as a residence for himself or his immediate family by providing at least 60 days written notice to the tenant. A landlord cannot terminate a rental agreement to recover possession of a dwelling to avoid repairs or sales or to increase the rent.
How to Draft a Rental Termination Letter
A. Current Date
The letter should be dated so that the tenant is aware of when it was prepared and can use that date as a reference point in responding to the letter.
B. Private or Trust Letterhead
A landlord can use regular letterhead or if they have a private trust, they can use letterhead with the name of the trust on it.
C. Names of the Landlord and Tenant
It is imperative that the letter reflects the names of both the landlord and the tenant. If the premises are being rented by multiple people, all residents should be named.
D. Address of Premises Addressed
The letter should reflect the address of where the rental property is situated.
E. Date of Termination
The specific date the agreement will be terminated should be immediately specified within the body of the letter. The allowance of time between the notice and the termination date is completely subject to agreement between the two parties.
F. Reason for Termination
In a termination letter, a statement explaining the reason for termination should be provided, such as if there was damage to the premises, unpaid rent, or loss of income from the premises.
G. Signature of the Landlord
Finally, the letter should end with the signature of the landlord, along with Enter Date as to when the termination letter was prepared.
Sample Wording of a Rental Termination Letter
There is no general template for writing these types of termination letters. However, phrasings and structure can certainly be taken from the examples below:
Dear [tenant] –
This letter constitutes [the required notice under the lease to terminate your tenancy, or a 30-day notice in the state of ____ to terminate the lease, or whatever applies].
Please vacate the premises by [date] so as to permit us to deliver the premises to a new tenant.
It is requested that you leave the premises in good condition as it was delivered to you.
Please pay the outstanding balance of $[common charges] by _______________ [insert date].
Thank you for your cooperation.
Yours truly,
Dear [tenant] –
This letter constitutes the ___th attempt and written demand for you to vacate these premises. You have failed miserably to cure your arrears, pay your monthly maintenance charges and comply with the terms of the lease. Accordingly, this letter shall constitute a 10-day notice pursuant to [cite operative law] and the lease to vacate the unit immediately.
Your rent will continue to accumulate and you will be responsible for same until you vacate. All amounts are due and owing in full and failure to pay them will cause you to incur late fees, interest and other costs . Further failure to do so, barring any tenancy within ten (10) days, shall result in appropriate legal action being commenced against you. Simply put, the time has come for you to remove yourself from the property and satisfy all outstanding obligations by so doing.
Sincerely,
Dear [tenant] –
Please be advised that this is a termination of rental agreement letter pursuant to the terms and conditions of your lease agreement. You are required to vacate the premises on or before [date] otherwise legal action will be taken to evict you from the property pursuant to [section #] of [operation law]. Please refer to your lease for other further information including obligations pertaining to the vacating of the premises such as cleaning and repairs.
Thank you for your cooperation.
For example:
Dear [Tenant],
This letter shall advise of the decision to non-renew your lease dated _____. Your tenancy will end at the expiration of the current lease term on ____________.
If you would like to return the unit for re-letting, please contact the office within _____ days from receipt of this letter. In any event, we must receive possession by mind on or before the termination date.
If you refuse to return possession to us by the date indicated above, legal action will be initiated to obtain an order of eviction.
Regards,
Important Legal Considerations Before a Letter is Sent
Landlords should also consider the legal impact of sending the letter. For instance, if an otherwise legal termination letter invites further correspondence between the landlord and tenant, this correspondence could be construed as a waiver of previous misbehavior or a modification of key terms in the agreement. Additionally, what if the tenant does not leave according to the specified timeline in the letter? Failure to adhere to the proper notification timelines can result in the landlord losing the ability to evict the tenant or increasing the amount of damages available to the tenant. Such can be the case in California, for example, where a landlord must provide at least 30 days’ notice before initiating eviction proceedings against a month-to-month tenant at a dwelling that has less than five units, and most termination letters do not satisfy such notice timeline requirements. A piecemeal approach requires landlords to restrict themselves to the requirements of a particular dispute while foregoing the considerable benefits of a more holistic alternative that a Uniform Residential Landlord and Tenant Act (URLTA) offers.
What to Do When Tenants React to or Ask Questions About Your Letter
When a landlord issues a termination of rental agreement letter and the tenant receives it, many different responses are possible. The worst thing a landlord can do is to be flustered or react poorly to a response – even a rude one from the tenant – in a visceral manner. Remember that any correspondence received from a tenant after the termination letter was sent also needs to be carefully recorded and archived for future reference. The more evidence a landlord can get stored away, the easier the court-causal chain will be to follow if the situation were to escalate.
The most important thing for a landlord is to act like a business person, even when things get heated emotionally. Many landlords have had to undergo serious litigation regarding a problematic tenant. How would a court or a judge respond to that behavior? While the answer is that they would look unfavorably at it, it’s a more important question for the landlord as to how they should respond, and act in a way that is above reproach.
What happens next, once the tenant has received the termination letter? The short answer is, it depends on the circumstances. The following are four of the most common possibilities:
In some cases, landlords may be surprised to find out that their tenants are actually graceful about a termination of rental agreement letter. It is a rare thing to deal with a gracious tenant, who immediately consents to the end of the tenancy, but it is rarer still for such a tenant to take offense and become angry at the landlord. More often than not, the larger issue will be the need for the tenant to find a new place to live – and keep their former landlord on the hook for a positive rental reference.
This is perhaps the scariest literal possibility; purchasing a shotgun and barricading the doors is probably not going to be appropriate . The underlying threat, however, remains. A tenant, realizing they are about to lose what previously seemed like a stable living situation, could potentially lash out at the landlord in a certain number of ways:
Depending on the actions or threats taken, law enforcement may need to be brought in on the situation. Even if such a response is to the reaction of the tenant, landlords cannot let themselves be put into a situation where they could be seen as being the aggressor. That means keeping evidence of the tenant’s behavior, living well outside of a ten-meter radius of the property itself and informing the police of the situation.
It is also worth pointing out that in such a situation, the reward for having the termination letter on hand is two-fold: one is that the landlord has kept a record of the full situation as it has evolved, and two is that the letter itself makes the case for the landlord versus any accusations that could be made from the tenant.
This final category may be the most problematic in some senses; there are few situations more fraught with emotional tension than the loss of a home, whether it is through foreclosure or through divorce or any other circumstance. A landlord may find it difficult to explain to an angry tenant why the end of the rental agreement has come about; they have lost the property they call home.
A certain amount of tact and diplomacy is required to persuade that the tenant to find a new home, but it is obviously worth it to the landlord. If the former tenant has been reshuffled into a new, stable situation with new landlords, thanks to the quick action of the former landlord, then this is an obviously positive situation for everyone involved.