Residential Lease Termination Agreements

Whether, a landlord terminates a residential lease or tenant, it is always to a landlord’s advantage to draw up a suitable lease termination agreement. It not only protects the landlord interests, but guarantees both landlord and tenant; clearly understand the implications of terminating a lease. The following stipulations are essential and should be incorporated in a lease termination agreement.

1. The effective date of lease termination should be a part of all lease agreements in order to provide both parties with a clearer understanding of when the rental premises have to be vacated by the tenant.
2. Termination charges. In case, a landlord wants a tenant to pay for lease termination, such as, a month’s rent or forfeit his / her security deposit, it should be stated clearly in the lease termination agreement.
3. Reciprocal release. Similarly, if a landlord does not wish to penalise a tenant for early lease termination, include a clause to the effect that both parties are willing to release each other from the terms of the written lease agreement.
4. Authority. A statement confirming both parties have the authority to enter into the agreement is also important.
5. Condition of the property. This clause should contain a clarification of what type of damages are to be considered as normal wear and tear, and which will be paid for from the tenant’s security deposit. In case, you feel the security deposit may not cover the entire scope of damages in the event of tenant eviction, specify the responsibility of the tenant in fixing the property.
6. Agreement in totality. Include a clause stating both landlord and tenant agree to all terms and conditions in the agreement. This is to ensure that neither of the parties can claim later they were not aware of any agreement terms, as well, this clause will legally protect both the landlord and tenant.
7. Delivery date. The time and date when the tenant will hand over the rental premises to the landlord must be included.
8. Signing the lease agreement. Both landlord and tenant must sign and date the lease termination agreement to indicate acceptance of it, and that no other separate terms or conditions have been left out of it. If a witness cannot be arranged to see the signing of the agreement, it can be signed in the presence of a notary public.

Not only is it plain common sense to use a lease termination agreement, it also ensures both parties are aware of the implications of breaking any agreement term. Even if, there is no written agreement, get the tenant to sign a written termination of an oral lease. It will cut through the confusion, providing a clearer understanding and legal recourse, should a tenant challenge any of the terms that a landlord may enforce.