Is there ever a time when either party involved in a lease agreement is obligated to renew the lease when the agreed-to time period ends? Do they have to give a reason for non-renewal?
The short answer is no but with a few exceptions. A landlord is not allowed to not renew a lease due to discrimination or retaliatory reasons after a tenant exercised their legal tenant rights.
If you've decided that you are not renewing the lease with your current tenants, you should write a lease non-renewal letter to inform them. Keep reading to learn how and when to send one.
What Is a Non-Renewal Lease Letter?
After a one-year lease or any other agreed-to period of time is up, either the landlord or the renter can write a letter that informs the other party that they will not be renewing the lease once it ends.
This letter is an official written statement sent either 30,60, or 90 days before the end of the lease agreement according to the terms of the original agreement. Some states have laws addressing the amount of notice one has to give for non-renewal notice.
This letter is sometimes called a lease termination letter or intent/notice to vacate.
How To Write a Lease Non-Renewal Letter
When issuing a non-renewal letter to your tenants, remember that it is a legal document and should contain certain pertinent information. It proves that the landlord gave proper notice to the tenant that the landlord would not be renewing the lease.
Make sure the letter is dated and contains the tenant's name and the property address. The landlord's name and address should be included just as in any proper business letter.
Reiterate the ending date of the current lease and, if required in your state, list the reason for not renewing the lease. Remind the tenants of their responsibilities like paying the rent for the remaining time on the lease and setting up a move-out inspection.
List the amount of the security deposit and original return policy. Don't forget to remind them of the reasons why some or all of the deposit may be withheld.
If the landlord is to return all or part of the security deposit, write in the letter when the renters can expect to receive a check according to local and state law.
Pay Attention to the Timeline for Lease Non-Renewal Letter
Give your tenants enough notice to find a new place by sending the lease non-renewal letter as required by law. Even if it wasn't the law, it's common courtesy and leaves no room for ending the landlord/renter relationship on a bad note, or worse, in a legal battle.
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