Consider This Clear Guide on Tenancy Termination

notice of tenancy termination is a document that expresses a landlord’s [lessor’s] intent to terminate a lease contract. Tenancy termination letters are as much a courtesy as they are part of a legal procedure. The main purpose of a notice of tenancy termination is to inform your tenants of three important things:

  • That they must vacate the property.
  • The reason behind why they must vacate the property.
  • The date when they must have already vacated the property.

A lease termination letter differs from an eviction notice. The former is treated as an initial step, while the latter is an escalation. Lease termination notices don’t require the involvement of courts and can be resolved without any trouble. 

An eviction notice is a court-written order that compels a tenant to vacate the property.

A landlord or property owner can choose to terminate tenancy at any time, but only for legal reasons. Take into consideration the fact that the termination of a tenancy means that your tenant loses their place of residence. As such, a tenancy termination is not a whimsical matter.

To fully understand tenancy termination, we must first understand the fundamentals of lease contracts.

How Does a Lease Contract Work?

A lease contract is an agreement between a lessor [the property owner] and a lessee [the tenant]. The lessor allows the lessee to use his property in exchange for a monthly rental fee. 

A lease contract also provides the terms of the tenancy, such as:

  • Payment dates and terms.
  • Property alteration permissions and restrictions.
  • Visitor and pet policies.
  • General property rules.

A lease contract grants a lessee the right to use the property, but the lessor retains ownership over the property. This means that the lessor, being the property owner, has full access to the rights of ownership. This means that the property owner may elect to sell the property. [But must give due notice prior to the sale.]

Tenant Lease Termination vs. Notice of Tenancy Termination

While both documents deal with lease contracts, they differ in terms of initiating party, legal purpose, and practical purpose.

A tenant lease termination is initiated by a tenant who plans to end the contract early due to a tenant’s circumstances, such as:

  • Serious medical conditions
  • Loss of income
  • Change in marital status
  • Property damage or unlivable property conditions

It gives landlords the opportunity to make the necessary adjustments to account for a change in income. It also provides protection against legal action from the landlord for terminating the lease early.

On the other hand, a notice of tenancy termination is initiated by property owners who plan to end contracts early due to the following:

  • A tenant’s breach of contract
  • An owner’s desire to use the property for personal or family use.
  • An owner’s desire to sell the property.
  • A significant refurbishment of the property.
  • A change in the property’s usage [From rental to commercial or personal use]

A notice of tenancy termination gives the tenant the time needed to search for a new property. It also gives the landlord protection from legal action arising from ending the contract early.

Note: Property owners must check state laws to confirm whether they can end a tenancy in order to sell their property. Some states require a 30 to 60-day notice, while others don’t allow it.

Photo by Kenny Eliason on Unsplash

In Summary

A tenancy termination letter is a document expressing a landlord’s intention to end a lease contract early. It must explain the reason behind the early termination of the lease. It also gives tenants sufficient time to find a new property to lease.

The laws regarding tenancy termination vary between states. It’s important that you check your state’s laws before making a move. While the state recognizes ownership rights, it also frowns upon the needless eviction of tenants.

Again, if you have any questions related to contracts, always ask a lawyer. Understanding these documents should take precedence over learning how to write them. The reason for this is that the internet is replete with free templates you can use.

Abir is a data analyst and researcher. Among her interests are artificial intelligence, machine learning, and natural language processing. As a humanitarian and educator, she actively supports women in tech and promotes diversity.

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