What Is a Lease Termination Agreement?

Standardized Legal Documents What Is a Lease Termination Agreement?

A Step-by-Step Guide to Writing a Lease Termination Agreement

Do you have to move because of a job change or any other life event? If you’re a tenant, you might be worried about the consequences of ending your lease before the actual termination date. The good news is—signing a lease termination agreement with the landlord will release you from your obligations.

If you’re not sure how to write a lease termination contract, DoNotPay will help you out. We will explain how to create the best lease termination agreement and help you draw up other legal documents in under five minutes.

Lease Termination Agreement Explained

A lease termination agreement is a contract signed between a tenant and a landlord once the landlord agrees to end the lease early. It’s usually used when terminating long-term leases since the short-term ones last only a month. Before you sign the termination agreement, you should first inform the landlord about your decision by sending a lease termination letter. 

In the letter, you need to explain the reason behind your decision and specify the termination date. The general rule is to inform the landlord a month or two in advance so that he or she can look for a new tenant. If the landlord accepts your termination, you should suggest signing a lease termination agreement.

You can terminate the lease for a variety of reasons, such as:

  • Change of job
  • Medical issue
  • Landlord’s failure to honor the lease agreement 

The landlord has the right to charge a fee for early termination to cover the potential loss. The fee shouldn’t be too high—it’s usually the amount you’d pay for a monthly rent plus advertising costs. The landlord could be lucky and find a new tenant immediately, in which case you have the right to ask for a fee refund.

Why You Should Create a Lease Termination Agreement

While creating a lease termination agreement isn’t mandatory, this contract protects you in case of a potential dispute or misunderstanding. If the landlord decides to sue you, you’ll have proof that he or she accepted the termination, which will strengthen your defense. 

A lease termination agreement is a good way of specifying:

  • Your move-out day 
  • What obligations you have until you move out
  • Security deposit return
  • Additional fees

It also protects you from any future charges—the agreement should state that the landlord won’t require you to pay fees or rents after the termination date. 

How To Write a Lease Termination Agreement 

You could hire a lawyer to create a lease termination agreement if you have the means to afford one. If you’re on a budget, there are plenty of lease termination contract templates online that you can follow. Since most of them cover only the general clauses, you can use the entire text from the template and add any additional info if necessary. 

Another option is to write the entire agreement by yourself, which can be risky if you don’t have experience writing contracts. 

What To Include in Your Termination of Lease Agreement 

If you decide to write the lease termination agreement on your own, make sure to include the following sections:

  1. Introduction—Identifies the document as the termination of the lease. You should include the termination date and the signing parties’ names. The parties on the termination and the original lease agreement need to be the same
  2. Termination—Acknowledges that both parties want to end the lease
  3. Termination fee—Specifies if the tenant needs to provide a one-time fee and the amount of the said fee
  4. Yield up—Includes the tenant’s promise to leave the property in the required condition by the end of the termination agreement
  5. Security deposit—Describes what will happen with the tenant’s security deposit
  6. Mutual release of liability—Includes both parties’ agreement not to sue each other
  7. Knowing release—Indicates that both signing parties are ending the lease of their own free will
  8. Tenant’s warranties—Promises that the tenant hasn’t subleased the property
  9. Governing law—Specifies which state’s laws will be used to interpret the termination agreement
  10. Signatures—Includes both parties’ signatures

Need Help Creating a New Lease Agreement? Rely on DoNotPay

Are you searching for another apartment? You should consider signing a lease agreement with the future landlord. If you don’t want to spend hours searching for the perfect template, DoNotPay has the best solution. We’ve created the Legal Documents feature to help Americans write professional documents without breaking the bank. 

With our help, you’ll create a lease agreement or any other contract in a few clicks:

  1. Log in to DoNotPay
  2. Type in the name of the agreement you want to create in the Search bar
  3. Provide the necessary info
  4. Download, print, and sign the document

DoNotPay’s affordable feature will help you draw up a lease agreement in any U.S. state, including Florida, California, and Texas. Check out some of the legal documents we can create for you in no time:

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