Rental Agreement Termination – Understanding the Process
A landlord may seek to terminate a rental agreement for a number of reasons. Sometimes, a landlord may have grounds to terminate the agreement for legal reasons related to the rental agreement itself or a situation that has developed. In other cases, it is simply a personal preference of the landlord to end the agreement and find a new tenant. In all cases, within the terms of the rental agreement, the landlord must properly terminate the agreement in compliance with any state and local laws and regulations concerning rental agreements. The termination by the landlord must also comply with the provisions of the existing rental agreement to be in accordance with the law and may be, upon a challenge, void if not done in accordance with the terms.
There are circumstances that may allow landlords to terminate a rental agreement immediately when a tenant is in default. These defaults include situations where an armed force member is called to active duty under a military service obligation and the person is serving on active duty, their dependent is unable to occupy the dwelling and does not return in reasonable time , a tenant is illegally using the premises which may include use for prostitution or illegal drug activity that affects others in the area, the tenant intentionally committing a criminal act on the premises that directly threatens and harms others or property, and has been convicted of trafficking in controlled substances.
In other situations, the landlord may legally terminate an agreement if there’s a breach of the rental agreement that is not a criminal act or illegal use of the premises. This breach may include failure to pay rent on the due date, failure to provide or maintain the dwelling in a habitable condition, non-compliance by the tenant with the rental agreement, including the maintenance of the premises for peaceable enjoyment, and non-compliance with local laws and ordinances.
Beyond these legal reasons for the termination of the rental agreement, there are also personal reasons that may lead a landlord to want to terminate a rental agreement. Some of these reasons include the need for the landlord to move into the premises for his or her family, have a family member move into the premises, plans that involve selling the premises or to have the premises opened to the marketplace to find a new renter.
Key Elements of the Termination Letter
The essential parts of a landlord termination of rental agreement must contain several key components. It is essential to follow the requirements of the law to ensure that the termination letter is valid. Each jurisdiction will have its own specific requirements, but most jurisdictions will require the letter to contain the following:
Notice period – A sentence or two stating the exact date of which the rental agreement will end. This date should be congruent with the termination notice period.
Reason for termination – The letter should detail the reasoning used by the landlord to terminate the rental agreement. Depending on the jurisdiction, the reason may or may not be legally required to be disclosed.
Legal citations – If citations are required by your jurisdiction, they will need to be included in the letter, and the rent paid should be referenced.
Options – The letter should advise the tenant that they have an opportunity to ask the landlord about the termination of the rental agreement, and how the rent trebled its amount.
Notice of conciliation and mediation – Depending on the laws of your state, a section outlining conciliation and mediation may be required. Conciliation and mediation provide an opportunity for tenants and landlords to discuss the issues that are troubling the relationship, and find a resolution both parties can agree on.
Utilizing Microsoft Word to Draft your Termination Letter
Microsoft Word is a word processor that is found on nearly every computer, laptop, notebook and device you can think of. Setting up a single document that will be your termination letter template for every tenant should only take a minute or two to do. This guide explains how to do that.
Start by Closing Any Spectator Programs
Now is not the time to type "dear tenant" and then get distracted by social media, a blog you read or a news program you were listening to before starting this. You need to close all your Internet browsers, any email programs, text messaging programs and other distractions you can think of.
Turn on the Program
Open the Microsoft Word program and allow it to load so you have a blank screen.
Open Up Page Setup
Click on the tab or button marked "Page Layout." Click on the button or link marked "Margins" and select either Normal or Narrow, depending on how much information you need to write, or how much paper you want to waste.
Set Up the Header
On the top right, you will want to click the Tab (or key) marked Header. In the header area, you want to type in the name of your rental business or "Corporation Name – Landlord" then insert an image of your logo to the left if you have one. If you don’t have a logo, simply leave this section as your company name. Without a logo, putting it on the same line as your company name can look messy, so it may be better to just put your name and address.
Insert the Address and Date
Back on the left side, you want to insert a line break, then insert your address, state, postal code and other information followed by the date. These elements are similar to most business letters, with the date going on the right of the address at the top. If you wish to indent the address, a common feature in business letter style, you can use the Tab key before typing.
Insert the Body of the Text
Split the Letter Into Paragraphs
Always give a tenant two weeks’ notice to vacate. You shouldn’t attempt eviction during the busy holiday season (mid November through Christmas) when the courts are backlogged. You should also give a tenant two weeks to correct the problem if it is salvageable. Separate paragraphs by inserting a blank line or indenting the first sentence of the next paragraph. Each paragraph is a separate thought containing the information needed to explain the situation to the tenant.
Add the Closing Statement
Click the Tab key for each sentence to indent them. You don’t want them to jump out at the reader and be singled out. The two sentences at the end are as follows: We wish you well in your endeavors and new home in the future. Your Signature Like the header, you will want to insert an image of your logo here too.
Now Save the Template
If you haven’t used the Microsoft Word templates before, you’ve probably never changed the default options. It is a good idea to do that now. Click File => Options => Proofing. Alternatively, simply press Ctrl+ Shift+I. Under the default font options, you can change the size, line spacing and other formatting options. The font you use should be an easy to read font, such as Arial, Times New Roman or other font. Making the default template reduce the line spacing will save you time later on.
Save This Template
Using Microsoft Word to create a termination of a rental agreement letter is one of the fastest ways you can get the letter to the tenant. Once you have saved this template, it is a simple matter of opening the document when you need it, inserting the relevant tenant information, making sure it looks the way you want, printing and delivering it to the tenant.
That’s it, your termination letter has been written!
Legal Guidelines and Considerations
The issue of terminating a rental agreement is not one that should be taken lightly by the landlord. Before proceeding with writing a landlord termination of rental agreement letter, landlords require a basic understanding of what exactly is at stake before moving forward. Under federal law, landlords are required to provide the tenant with the same rights and protections that they would be entitled to as homeowners (Section 8 Act). In addition, the federal Fair Housing Act prohibits discrimination when it comes to selling housing and it also requires lenders to not discriminate when lending money.
In order to meet the requirements of federal and state law, landlords in the United States and California must ensure that they are following current legislation and regulations. State law places additional regulations on the landlord including what types of clause may or may not be included in the rental agreement. The section also contains rules regarding how much notice landlords are required to give before terminating a rental agreement and the circumstances that allow them to do so (e.g. by act, necessity or disobedience).
Provisions of the Civil Code Sections 1942, 1946, 1946.5, and 1947.2 include but are not limited to:
Section 1942 – provides that tenants have certain rights to withhold rent when the rental dwelling is in habitability form and provides that landlords are typically responsible for any loss of rent where the dwelling is not habitability.
Section 1946 – governs the notice and method required by landlords to terminate a rental agreement with a residential tenant. The section specifically covers the type of notice and the timing of serving that notice in order to terminate a dwelling. This section also includes information on the requirements of the landlord in providing the tenant with written notice that the landlord intends to terminate the rental agreement. The following subsections cover the requirements of the landlord (e.g. rent payment) and the type of notice that must be provided (30, 60 days or 90 days), for example.
Subsection (a)(1) – requires the landlord to give a written notice that specifies the name, telephone number and address of the person giving the notice or who will be receiving the rent due.
Subsection (a)(2)(A) – requires the landlord to give a 30-day written notice to terminate a rental agreement in which the rent is not paid monthly.
The provisions of the Mobile Home Residency Law (Civil Code Section 798-799.9) and senior tenants (Civil Code Section 51.3) also cover the form, content and manner in which landlords can terminate a rental agreement.
Sample Lease Termination Letter
Insert your name or business name
Insert your address
Insert today’s date
Insert tenant’s name
Insert tenant’s address
RE: Termination of Tenancy
Dear (insert tenant’s name),
I am writing to inform you that I am terminating your rental agreement/lease to begin effective (insert date you want termination to be effective) .
Please ensure that you have vacated the premises by this date. Should you wish to discuss this matter further, please telephone me or write to me at the above address.
Thank you.
Yours sincerely
(Insert your name, or your title)
(Where applicable, For the Landlord/Property Manager/Agency/Agent)
Common Mistakes to Avoid
Common Pitfalls to Avoid
One of the most common mistakes to avoid is failing to follow proper procedure. Some landlords get impatient and want to terminate the lease as quickly as possible, so they may draft a letter and give the tenant a shorter termination notice period than is legally required. This can lead to legal complications down the road, particularly if your tenant decides to challenge the termination. Ensure that you have thoroughly researched your state’s laws before moving forward. You should also check to see if there are any particular tenant protections that apply to your situation. For example, if the tenant has dependents, they may be granted a more lenient severance period.
Another common mistake is being unprofessional when drafting the letter. Disputes between tenants and landlords can quickly become heated, but it’s important to maintain a level head and to keep your emotions out of the process. Adhere to the facts, without making any personal attacks, or threats. If you don’t use the proper professional language, even if you think it’s appropriate, it may lead to conflict with your tenant. It’s critical to have a civil relationship with your tenant immediately following a termination. It’s in your best interest to have them leave peacefully, without having to go to court.
What Comes Next After Sending your Lease Termination Letter
Once you have sent your landlord termination of rental agreement letter created in Microsoft Word, certain actions may need to be taken in accordance with your state or local laws. You must be prepared to answer questions from your tenant regarding the termination, and you should abide by the law with regard to securing the dwelling in question . A critical factor in maintaining a rental property is follow-up with tenants who have been non-compliant with the rental agreement. Speaking or corresponding directly with your tenant regarding reasons for eviction may be necessary to remedy the situation without court involvement. Make sure to follow the guidelines laid out by your state regarding notice timeframes, and stay clear of treating tenants in a discriminatory manner in order to avoid a potential lawsuit.