Termination of Tenancy Agreement: Crafting the Ideal Letter for Landlords
Tenancy Termination Explained
Termination usually applies to a tenancy agreement if the landlord gives notice that he wants to end the agreement and recover possession of the property. The notice must be given in accordance with the terms of the tenancy agreement and/or the law.
The termination date will depend on the wording of the tenancy agreement. It could be the date fixed in the tenancy agreement for its end, or a date stated in a written notice to the tenant that terminates the agreement.
It is important for any landlord to have a procedure for terminating a tenancy without having to risk a claim for harassment or an unlawful eviction. The safest option for a landlord is to serve a notice on the tenant in accordance with the terms of the tenancy agreement and the law, and wait for the tenancy to end, using the provisions of the tenancy agreement and the law.
Notice can be given if a landlord chooses to continue with the tenancy agreement agreement in exceptional circumstances even if he has not received rent for three months and/or the tenant has breached a term of the tenancy agreement. A landlord may also choose to terminate the agreement in certain circumstances , such as the sale of the property or where an assured shorthold tenancy has come to an end and the landlord required possession of the property for his own use.
The key aspect of terminating a tenancy agreement is to follow strict legal requirements in respect of serving notice on the tenant, which unless specific requirements apply, can simply be done in writing. If you are not a lawyer, you owe it to your tenants and yourself to get someone with experience in tenancy agreements to check that the required format and/or duration of notice (and any procedural requirements) are satisfied, before serving notice on the tenant.
If you do not serve a tenancy agreement on the tenant, you may have to obtain a court order to terminate the tenancy agreement. In particular, a landlord may have to obtain a court possession order if the tenant does not leave the property after being served with notice:
A landlord can expect to recover possession of a rented property without the involvement of the Court where the tenant has signed a written agreement of specified form that gives the tenant limited security of tenure, for example, an assured shorthold tenancy.
It is the notice given by the landlord to terminate the tenancy agreement that is the critical factor in this process.
Permissible Causes for Termination by Landlords
As previously mentioned, a landlord may need to terminate a tenancy agreement for various legal reasons. One such reason is the non-payment of rent. A lease between a landlord and tenant is essentially a contract, and if the tenant fails to comply with the term stipulating regular rental payments, then the landlord has grounds to terminate the agreement. The procedure for obtaining possession for non-payment of rent is often expedited under Section 8 of the Housing Act 1988.
Breaching lease terms is another common reason for terminating a tenancy agreement. If the tenant has violated the terms of the agreement in some manner, then the landlord may use this as grounds for termination. This includes any promises or agreements (which are not legally binding) made between the landlord and tenant regarding the property being leased. For example, a landlord may have agreed to make repairs upon the tenant moving in, but the repairs were either not made or not completed. Breaching this agreement could be sufficient grounds for a termination.
In addition to non-payment of rent and breaches of lease terms, other legal grounds include making the premises unfit for habitation (more so applicable to landlords of more permanent residential properties), causing damage to the property itself, allowing tenants to reside in the property without permission, and violent conduct.
Key Elements of a Tenancy Termination Letter
For landlords, the essential information contained in a termination letter includes the following items:
- Information on Each Party: This includes the name of both the landlord and tenant, as well as identifying information for the property such as the address, apartment number and other identifying features that can be used to clearly identify the unit for which the tenancy agreement is being terminated.
- Reason for Termination: This is not always necessary, especially if the tenant is not likely to be adverse to the termination, but identifying the reason for which the lease is being terminated may help the tenant understand it and accept it.
- Notice Time Period: This may be dependent upon the reason for which the lease is being terminated, as well as which jurisdiction you are located, however you should never provide less notice than is required under the law, and rather than determine this yourself, a lawyer should be consulted to determine the appropriate amount of notice.
- Tenant’s Obligations Upon Moving Out: This may include cleaning the unit, making necessary repairs, as well as what happens to the deposits and other financial information may be outlined in detail.
Writing a Precise and Professional Termination Letter
A well-crafted termination letter sets a professional tone and ensures that both the landlord and tenant are on the same page regarding the end of the tenancy. To this end, the letter should be composed with an appropriate tone, clear language, and a logical structure to guarantee both legal compliance and ease of understanding for the tenant.
Tone and Language
The tone of a termination letter should balance professionalism and empathy, acknowledging the often difficult decision to terminate the tenancy while remaining clear and factual. It is important to avoid using overly familiar language with the tenant, as this may be deemed inappropriate due to the legal nature of the document.
The language should be devoid of legal jargon and easily understood by someone not trained in the field of law. The tenant is not operating in a professional capacity, and the use of complex legal terminology may cause confusion, unnecessary alarm, or lead to the tenant believing that they have grounds to fight the termination.
Every termination letter must include details of the specific complaint against the tenant to ensure the landlord has a legally valid reason for the termination. If the landlord cannot prove certain behaviours took place, they may not have legal grounds to end the tenancy. As such, it is important for the landlord to keep copies of documents that provide evidence of any alleged wrongdoing. This is especially important when the landlord plans to use these documents in court. This is exceptionally so, where the truth of the events are in dispute.
To avoid false conclusions by the tenant, the wording of the letter should appropriately reflect the seriousness of each complaint or issue that the landlord has chosen to highlight in the termination letter.
The landlord should be careful when using the phrase ‘nuisance’, which can refer to a number of issues including the tenant having jokey nickname of ‘troublemaker’ or ‘drunkard’ and pet ownership which is banned by the Did You Know? section of the tenancy agreement. It is best to avoid the term ‘nuisance’ entirely and mention any other breaches of the tenancy agreement such as those mentioned above in order to minimise the risk of misunderstandings.
Structure
The focus of the letter should be on the conduct that has led to the termination decision. Accordingly, it is a good idea to structure the letter in the following way:
This structure gives a clear overview of the complaints the landlord has against the tenant and can be used as a template for any future termination letters that may need to be issued.
A concise summary of the conduct should be provided to give the tenant a chance to improve the situation, the key element being an opportunity to respond.
Notice Periods and Legal Procedure
It cannot be stressed enough the importance of adhering to the correct notice periods as set out by law. Different jurisdictions may have different requirements, and periods may vary depending on the circumstances of the tenant and the property. It is important that you have a good understanding of these legal requirements to ensure that your notice is legal, valid and binding, as well as being effective. In some places , a notice period of 90 days is standard. Other areas might only require 30 days or even 14 days, depending on the level of rent being paid. In some areas it may be illegal to give notice during holiday seasons, or periods of bereavement. A legal termination letter can be found here. Exceptionally, some areas may even provide protection for tenants who are renting from a management company rather than a private landlord.
Serving the Termination Letter to the Tenant
It is advisable to deliver the termination letter in person. However, if this is not feasible, you should have a process in place to send the letter to the tenant’s last known address, and such delivery should be documented. The landlord should send the letter via regular mail and, where the cost of the letter warranted and available, via registered mail, to the tenant’s last known address within the timeframe specified by the Act (Section 81 of the Residential Tenancies Act, 2006). If a tenant has not provided a forwarding address, the notice may be addressed to the tenant as General Delivery and delivered to a post office, with the tenant’s name listed and the local post office indicated as follows:
To: Jane Smith (General Delivery)
Post Office: Port Hope Main Post Office
Location: 123 Main Street, Port Hope, ON L1A1B2
The tenant may claim that the letter was not received by the tenant by either mail or registered mail. Rather than taking a chance that the tenant makes this claim, you should have a process for recording and retaining proof that a termination letter was received, such as ensuring that the delivery method provides evidence that the letter was actually sent, specifying where and how it was delivered, and keeping track of when the letter was delivered.
Dealing with Tenant Replies and Disputes
Handling tenant responses or disputes:
With any notice served to a tenant, there is always the likelihood that the tenant may dispute its validity or refuse to leave the premise by the end of the Termination Date. It is important that the landlord is aware of this and is properly prepared to deal with such a scenario. Below is a brief overview of what a landlord should consider in the event it receives a dispute or challenge from the tenant.
There are a number of options to consider:
Legal Advice or Dispute Resolution Services
Where a tenant responds denying receipt or disputing the validity of the notice or the basis for the termination of the Tenancy Agreement, or refuses to leave by the Termination Date, the landlord should seek legal advice either in relation to enforcement and/or proceedings for eviction, or for mediation services.
Template Tenancy Termination Letters
England & Wales
Template 1
Termination of Tenancy Agreement
Property Addess:
Date:
Tenant Name:
[Landlords Name/Agent]
We require vacant possession of the above Property on dd/mm/yyyy. If you have not already done so we will make arrangements for the removal of all goods left in the Property and the handing over of the keys prior to this date.
Yours sincerely,
[Landlords Name/Agent]
Template 2
Termination of Tenancy Agreement
Dated on the … day of … 20….
Parties: (1) Landlord – (Full name and home and postal address).
(2) Tenant – (Full name, home address and postal address of property (hereinafter "the Property")).
(3) … (Other tenants if any – state).
I am giving you notice that I require the Property to be returned to me on the … day of … 20… . If you do not vacate the Property by that date I will apply to the Court for an Order requiring you to leave the Property.
If you fail to leave the Property by … day of … 20…., I will be entitled to enter the Property and take possession myself.
This notice is given pursuant to (delete as appropriate) – s.8 of the Rent Act 1977 as amended by s.4 of the Housing Act 1988 (only where tenancies are outside the Housing Act 1988 or where a ground for possession under s.8 has been cited) or … .
………………………….. .
…………………..
…………………….. .
Witness my hand this … day of….20… .
……………………………
* unless the lettings are managed by an agent.