Basics About Termination Of A Rental Agreement
There are many reasons that a rental agreement may need to be terminated. There may be a lease violation that was not remedied within a given period or the lease is set to end soon and the landlord wishes to terminate early. In some cases , the owner of the premises may want to sell the property and no longer have the lease in place at the time of selling. When writing a letter to uphold the agreement termination, it is necessary to establish that the landlord has a legal right to terminate the lease. The reasons may be outlined in the lease or in accordance with state law, but a valid reason for termination must be established.
The Legalities Of A Termination Notice
The legal requirements for a termination notice will vary depending on the states you are operating in. In some states such as California or Massachusetts, you may be required to provide 30 days’ notice of termination. In Wisconsin, you may be required to provide a tenant with 5 days’ notice of termination, whereas in Nebraska 24 hours’ notice are required. It is important to familiarize yourself with the requirements of your state and the jurisdictions where you own property. State and federal requirements apply to landlords as far as writing a proper termination letter to your tenant.
In general, a landlord has the right to terminate or end a month-to-month tenancy by giving the tenant a thirty days’ notice in writing. If the tenant has occupied the rental unit for less than ten years, the landlord can end the lease as long as he or she gives the tenant a minimum of thirty days’ notice. For those who have occupied the rental unit for over ten years, or those who have lived in the unit under the current rent terms for over two years, the landlord is required to give an additional 10-days’ notice. In Wisconsin, if the tenant has occupied the unit for more than ten years, a notice of sixty days’ termination must be provided. If the tenant has lived in the unit less than ten years, a thirty days’ notice is required.
There are laws in place that landlords are expected to follow when it comes to terminating a rental agreement that prevents a landlord from discriminating against a tenant. It is unlawful for a landlord or property manager to terminate an existing tenancy based on the following:.
Landlords should be aware of the process involved when terminating a rental agreement so that they do not face legal issues down the road. A rental agreement termination letter is suggested to be written up in the event that a landlord does have to choose to terminate a rental agreement.
Elements Of A Termination Letter
The text of the letter should be intentionally clear and concise – leaving no room for potential misunderstanding. It is also critically important to include the reasons for the termination in the letter so that the tenant can no longer continue to believe that the eviction is unwarranted or unfair. Even if the termination letter is addressed personally to the tenant, it is a good practice to also include some background facts and references to the lease itself so that the reader is placed in a position to quickly and easily understand the reasons for the termination of the tenancy. Finally, the letter should advise the tenant of any specific move out requirements not already covered in the lease and instructions on how the tenant should return the property at the end of the tenancy.
Sample Termination Letter
Dear (Tenant’s Name),
This letter serves as notice of termination of your lease at (Property Address) as of (Termination Date). While this letter is a termination of your lease, you do remain responsible for all payments on your rental agreement until such time as the property is re-rented, and you have been released from further liability on the property.
If you desire to not renew your lease, please be advised that prior to your vacating the subject premises, you must remove personal property from the property or you will be in violation of the lease agreement and will be liable for any removal costs or damages resulting from such removal . You are also reminded that per our telephone conversation on (Date of Phone Conversation), you were advised of your right to attend an inspection of the property on (Date of Inspection), which you declined to do.
You are hereby put on notice to remove and transfer all of your personal property from the premises by the termination date listed above, in accord with section 8.08 on Page 11 of your agreement. Your deposit on the premises will be being considered if the property is turned over at that time.
If you have any questions or wish to discuss your lease further, please contact me at (Office Phone Number).
Sincerely,
(Landlord’s Name)
How to Communicate A Termination To Tenants
Best Practices for Delivering a Termination Notice to a Tenant
When the time comes to break the news about terminating a rental agreement, the delivery method and tone of the conversation are key.
To ensure there are no heated emotions or scope creep of improvement requests after termination, follow these tips:
Keep it professional – It’s best to maintain a business tone while speaking to your tenant about the rental agreement termination. Explain the process for returning the property, if this is part of the termination agreement. For unit owners, you can mention that the termination is necessary for the long-term sustainability of the business. You might recommend the tenant do the same after discussing the termination.
Remain empathetic – No matter how much notice you give the tenant, they might have trouble while coming to terms with how to best move forward. Acknowledge this transition, and offer to help in your own way. You might also volunteer a local real estate agent that can help the tenant with the process of finding a new place.
Remain firm – A professional and empathetic approach when separating from a tenant doesn’t mean you should accept any conditions they may try to negotiate into the termination. After all, you’re separating to save time and money.
Dealing With Tenant Response To Termination
In the event that you terminate a rental agreement where the tenant does not want to leave your premises as indicated by the notice, you have a few options. If possible and if the tenant gives in, it is best to avoid the confrontation by finding some terms that are agreeable. You can consider discounts on any overdue rent, time payments or other incentives as well. That being said, you need to make sure that whatever incentive you give the tenant will not risk your right to collect all the rent that the tenant owes. For example, it would not be wise to say that you forgive the four months of rent that the tenant owes you so long as he or she vacates the premises and pays two months of back rent. The tenant does not have to pay you any rent for the two months because you forgave it.
Another option available to you is to get a solicitor involved. If negotiation breaks down, it may be best to have a solicitor draft a termination agreement for both parties to sign . A properly drafted termination agreement is always preferable to going to court and asking a judge to terminate the lease for you. If you end up taking the latter option, the judge will probably look to the tenant who has the right of possession, and therefore, the ability to avoid forfeiture of the lease (having a lease end early without all the proper paperwork completed).
It may also be possible to hire an eviction lawyer to initiate proceedings to remove the tenant from your property. If you obtain a favourable judgment in your favour, the judge will base your award on the terms of the original lease and the damages you have incurred from the outcome of the lease. If you manage to collect on your award, the tenant will be responsible for paying your legal fees, as well.
If none of the options above prove effective, you may find yourself in court. When you present your case to the judge, you want to ensure that you have all your documentation in order. Without the proper disclosures, the judge may not side in your favour.