How to Terminate a Lease as a Tenant?

Leases are binding legal contracts in which both parties sign a written agreement concerning a piece of real property for a specified period of time. However, in many cases, one of the parties subject to a lease may seek to terminate a lease agreement. The two parties typically involved in a lease agreement are commonly a landlord and a tenant.

Early termination of a lease can lead to various losses and, in some cases, may even lead to a lawsuit or other legal penalties. In general, this is because a termination of a lease is considered a breach of a written contract. Normally, a tenant may enforce a termination of a lease agreement under the following limited circumstances:

• Periodic Tenancy: A periodic tenancy is a tenancy that describes a month-to-month lease that can be terminated by either the landlord or tenant for almost any reason;
  • In some cases, a prior written termination notice is required by the party seeking to terminate the lease in order to terminate a periodic tenancy, which is usually thirty days;
• Tenancy at Will: Under tenancy at will, either party to the lease may terminate the lease at any time, as long as prior notice is given.
  • Tenancy at will is similar to employment at will in that any reason may be used to terminate the relationship between the two parties, so long as the reason given is not illegal in nature;
• Landlord Violation of the Lease: When a leased property is inhospitable as set forth in the lease’s requirements or is otherwise uninhabitable, the tenant can seek to break the lease for their own health and safety.
  • It is important to note that in most states, a landlord has a duty to keep a tenant’s building habitable. Additionally, if the landlord fails to perform this duty, the law may allow the tenant to terminate the lease; and
• Destruction of Property: Many state statutes and lease provisions commonly allow a tenant to terminate their lease if the premises subject to the lease are destroyed.

It is important to note that all of the above situations are governed by the laws of the jurisdiction in which the original lease was executed. As such, it is important to understand the laws of your local jurisdiction when determining whether or not you can terminate the lease as a tenant.

When Can Landlords Terminate the Lease?

Just as there are instances in which a tenant can terminate a written lease, there are also some instances in which landlords can terminate a lease agreement and evict the current resident. In general, a landlord may enforce a termination of a lease agreement under the following circumstances:

• According to a written agreement between the landlord and tenant, such as an agreement containing a termination clause; or
• At the end of a tenancy term, such as those listed above.
  • Once again, a proper lease termination notice is often required depending upon local laws.

Similar to a tenant terminating a lease, landlords also need to ensure that an early termination of a lease does not create losses or other issues for the tenant. Once again, early termination of a lease can lead to various losses for a party subject to the lease. These include the economic losses needed to move out and find a new home.

There is an ideal way for a landlord to ensure that they are not subject to liability for any losses related to a lease termination. It is to properly and timely issue any occupying tenant a lawful lease termination notice that informs them of any changes to the current tenancy policy. The rules of the local jurisdiction in which the lease was executed will determine what must be present in a lawful termination notice.

Although the exact contents of what should be included in a lease termination notice differ by state, in general, the termination notice contains the following information:

1. The date of the letter: A date is important for both the landlord and tenant to have a clear reference point for when the termination notice was given.
2. The address or description of the rental property: An address is used to confirm that the correct property is being referred to.
3. The date on which the tenancy will end: The date of termination or the end of the tenancy is needed to specify the date on which the lease will end and should be in accordance with the notice period required in the lease agreement or by local laws.
4. The reason for the termination: A reason for the termination is optional, but it would be good to have a reason for termination included in the letter as good cause may be legally required in some jurisdictions.
5. Instructions for the tenant: The notice should also include instructions for the tenant such as paying rent, returning keys, vacating the property by the end of the lease term.
6. Any additional information required: The notice should also mention any additional information that is required in accordance with the original lease agreement, such as the property condition or any other relevant clause.
7. Contact information: The letter should also include the contact information for both the landlord and the tenant so that both parties can reach each other if there are any questions or concerns about the termination notice.
8. Signature: Finally, the letter should include the landlord’s signature and be made in writing.

What if a Lease Termination Causes Damages?

As mentioned above, termination of a lease may result in financial losses, which may trigger a lawsuit by the non-breaching party. As such, if a lease termination causes damages, that may require a civil court to examine both the landlord and tenant laws in the area. A civil court may also need to examine any existing agreements between the parties involved in order to determine whether the non-breaching party is able to recover damages associated with the breach of the lease agreement.

The penalties for breaching or terminating a lease will typically be governed by the original terms of the lease that were entered into by the tenant and landlord. This means that a typical lease will include a section concerning damages that the non-breaching party may seek if the lease is terminated early or improperly.

In addition to any legal remedies for breaching the lease, the landlord or tenant may also recover any contractual damages caused by the other party’s breach of the original lease terms. This means that if the non-breaching party takes the breaching party to court, they may be able to recover liquidated damages or attorney fees. The non-breaching party may also seek to terminate the lease agreement themselves.

Should I Hire a Lawyer for Help With a Lease Termination?

You may have questions regarding your right as a tenant to terminate a lease, or what should be present in a lease termination notice. If this is the case, it is in your best interests to consult with an experienced landlord-tenant lawyer in your area.

An experienced landlord-tenant attorney can look over the terms of your original lease and help you understand what your best course of legal action is. Additionally, an experienced attorney can also represent you in court as needed should a private lawsuit be initiated as a result of damages arising from the lease termination.