Why Terminate A Lease

As a property owner, there could be several reasons why you might want to terminate a lease agreement with a tenant. Some common reasons include:

• Non-Payment of Rent: When tenants consistently fail to pay rent on time or breach rent payment terms, you may consider terminating the lease.
• Lease Violations: Instances where tenants violate lease terms, such as causing property damage, engaging in illegal activities, or subletting without permission, could warrant lease termination.
• Property Damage: Significant damage caused by tenants beyond normal wear and tear may prompt you to terminate the lease to avoid ongoing maintenance issues.
• Illegal Activities: Discovering tenants engaging in illegal activities, like drug-related offenses or other criminal behavior, could provide grounds for lease termination.
• Health or Safety Concerns: Uninhabitable conditions due to tenant-caused health or safety hazards might necessitate terminating the lease to ensure compliance with housing regulations.
• Personal Use: If you or a family member plan to occupy the property, terminating the lease may be necessary to reclaim possession.
• Renovation or Redevelopment: Plans to renovate the property or repurpose the land may require terminating existing leases to proceed with changes.
• End of Lease Term: When the lease agreement reaches its expiration date, and you opt not to renew, termination may be necessary to regain possession or negotiate new terms.
• Selling the Property: To facilitate property sales and ownership transfer, terminating existing lease agreements may be necessary.
• Changes in Property Management: Changes in property management or ownership may require lease terminations to implement new policies or procedures.

Any well-written lease document will include a termination of lease clause that permits you to end the lease under certain conditions. If that isn't included in your lease, you may have trouble terminating the lease early.

Once you give notice by way of a lease termination notice, you should allow the tenant enough time to move out. Ninety days is a good time frame if possible. If it is a month-to-month lease, you must provide at least thirty days' notice to vacate.

Nine Steps For Writing A Termination Of Lease

One of the most important reasons for the termination of the lease letter is the documentation. This paper trail ensures that your tenant knows exactly what you, as a landlord, plan to do and how you are going to do it. If a tenant fails to comply, you will then have cause to be evicted.

Your notice should be written on a landlord or property management company letterhead and include some key things to ensure that it is correct. 

1) Date Of The Letter

Begin the lease termination letter by clearly stating the date on which the letter is written. This provides a reference point for both you and the tenant and establishes the timeline for the termination process.

2) Name And Address Of The Tenant

Include the full name and current address of the tenant to whom the letter is addressed. This ensures that the letter is properly directed and received by the intended recipient.

3) Request For Vacating By A Specific Date

Specify the date by which you expect the tenant to vacate the rental property. This should follow the terms of the lease agreement and any applicable local laws or regulations regarding lease termination notice periods.

4) Reason For Termination

Provide a brief explanation of the reason for terminating the lease agreement. Whether it's due to lease violations, property renovations, or other circumstances, transparency about the reason for termination helps clarify the situation for both parties.

5) Reference To Lease Clause Permitting Termination

If applicable, reference the specific clause or provision in the lease agreement that grants you the authority to terminate the lease under the given circumstances. This reinforces the legality and validity of the termination.

6) Date For Walk-Through Inspection

Schedule a date and time for conducting a walk-through inspection of the rental property with the tenant. This allows both parties to assess the condition of the property and address any issues or damages before the tenant vacates.

7) Request For Tenant's New Address

Ask the tenant to provide their new forwarding address for communication purposes and to return the security deposit. This ensures that any correspondence or refunds can be sent to the tenant's new address without delay.

8) Statement On Property Condition

Include a statement requiring the tenant to leave the premises in good or "broom-clean" condition upon vacating. This sets expectations for cleanliness and helps ensure that the property is ready for the next tenant.

9) The Requirement To Turn Over Keys

State that the tenant is required to turn over all keys to the rental property upon vacating. This ensures that you regain full control and access to the property after the tenant's departure.

A well-crafted lease termination letter is a crucial document in the process of ending a lease agreement with a tenant. By including the essential elements outlined above, landlords can effectively communicate their intent to terminate the lease while ensuring compliance with legal requirements and maintaining a professional and respectful relationship with the tenant.

You can draft your termination letter yourself or utilize an attorney or your property management company. 

Asheville Phoenix Properties - Hire The Right Property Management Company

Terminating a lease can be a very stressful thing, and when done incorrectly, it can lead to legal issues down the road. It is important that you and your rental business are protected from legal liability. Working with a property management company can help keep you out of the weeds and improve your experience as a landlord. 

If you are looking for an end-to-end property management company, then look no further than Asheville Phoenix Properties. We make owning rental properties a hassle-free experience while ensuring that you are getting the best ROI out of your properties. We also take care of the uncomfortable parts of owning investment properties so that you don't have to. Contact us today to learn more!