What Should a Commercial Lease Termination Letter Include? 

11.01.24 06:55 PM Comment(s) By Assetsoft


Whenever a landlord leases any property to the tenant, a commercial lease agreement is signed between both of them. 


This agreement includes all the basic legal details of both parties and the property on lease. It also states further terms and conditions regarding rent payments, security, maintenance responsibility, and lots more, on which both have a mutual agreement. 


Sometimes any of the parties want to dissolve the agreement. For this, proper communication and documentation are needed. 


For termination of the lease, mostly the tenant sends a lease termination letter to the landlord. In this article, we will discuss this termination letter in detail. 



What Is a Lease Termination Letter? 

A Lease Termination Letter is a formal document sent by any of the parties, but usually by the tenant to the landlord that notifies their intention to terminate the lease contract. 


A commercial lease agreement employs lots of legal formalities, so terminating such an agreement is quite complex. It requires a detailed understanding of all the essential points and following the proper guidelines.  


A lease termination letter should be sent through certified mail to have a return receipt. The reason behind this is that sometimes the other party may refuse to receive notice, and then you can show that receipt. 


One needs to follow the rules governing commercial lease termination. If they don’t, they can face certain legal consequences.  


Drafting a lease termination letter for a property is also very important. It should cover all the essential details to avoid any form of doubt or misunderstanding. 


Key Considerations While Drafting a Lease Termination Letter for a Property 

Here are the essential things that one should consider before drafting the termination letter: 


1. Read the Lease Agreement Thoroughly 

Any party willing to issue the termination letter should thoroughly review the property lease agreement. They should review all the terms and conditions, understand every aspect, and revisit the details about the notice period, termination, or any other specification on ending the lease. 


All these details will help you successfully draft the termination letter. 


2. Follow the Standard Format 

One should know how to draft an official letter. The termination letter needs to be written in a proper format


  • It should have all your details, including name, address, and contact number. 

  • Landlord’s name and contact number. 

  • The date, when you are writing the letter. 

  • Proper Salutation. 

  • Then, the body of the letter defines the essential points. 

  • In conclusion, express gratitude, reflecting the positive points. 

  • Provide your contact information for the other party to communicate. 

  • Attach relevant documents if available. 

  • Specify how the letter will be delivered. 

  • If one contacts any legal counsel, their details can also be mentioned. 



3. Language Must be Clear 

The language used throughout the letter should be very clear and concise. Write to the point and straightforward to specify the objective of the letter, which is to terminate the lease. 


4. Mention Notice Period 

The notice period is mentioned in the lease agreement, so consult the agreement before mentioning it in the termination letter.  


In some states, it is not mentioned in the agreement, then usually a 30-day notice period is provided, and it should comply with the state’s laws. 


5. State Your Reason for Termination 

The reason behind your lease termination should be clearly stated in the letter. This could include relocation, closure, downsizing, or any other. Be specific while mentioning it. 


6. Ask for Security Deposit Returns 

If the tenant drafts the lease termination letter, they should address the return for the security deposit provided while signing that agreement. Also, specify the amount you deserve and the payment method you prefer. 


7. Elaborate on the Property Conditions 

The tenant must mention the property conditions, elaborating that they are in good condition and not subjected to any damage or harm. Also, necessary repairs will be undertaken before vacating the premises. 


8. Additional Tips 

  • Proofread the letter for any mistakes and ensure that each information is accurate. 

  • Keep a copy of the termination letter with you. 

  • Provide your new address to receive security deposits. 

  • Before delivering the letter, consult with any legal person to review it. 



Wrap Up 

There are specific reasons for one needing to terminate the lease agreement, like relocation, closure, or any other. However, drafting a lease termination letter accurately can help to prevent disputes between the tenant and landlord.  


If all the details are clearly stated in the letter, it helps the other party to understand the reason and cooperate in further proceedings. 


The lease agreement for the property is a legal matter. So, the termination of the lease is also a bit complex and requires official consultancy. It is advisable to contact your legal advisor to help draft the lease termination letter for the property to avoid any complications in the future. 

Want help with lease agreements and lease abstracts? The Assetsoft team can help you. Talk to us to know more. 


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