Lease termination letter template
A fixed-term lease ends on the date written in it. Ending it on any other date takes a signed agreement, and letting it lapse cleanly takes a letter that says so. This sheet writes all three versions from the landlord's side.
Pick the situation, then edit any line. Pre-filled with a worked example.
Lease termination agreement
Release terms
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Preview
18 October 2026 Dana Whitfield 1412 Ashgrove Ave, Unit 2 Re: Agreement to end the lease early By mutual agreement, the lease for 1412 Ashgrove Ave, Unit 2, signed 1 June 2026 and running to 31 May 2027, will end early on 31 December 2026 on the terms below. 1. Possession: you hand back possession, and every key, fob and remote, by 31 Dec 2026, 5 pm, at the unit. 2. Rent: rent is owed through 31 December 2026. 3. Termination fee: $800. 4. Rent is paid in full through the termination date; no rent is owed after it. 5. The termination fee is paid on signing and is the only charge for ending early. 6. The security deposit is handled exactly as the lease and state law require: itemised deductions only, posted to the forwarding address. 7. Once both sides have performed, neither owes the other anything further for the period after the termination date. Everything in the lease not changed here stays in force until the termination date. This agreement takes effect only when signed by every tenant named above and by the landlord, and must be signed and returned by 1 November 2026. Landlord: ______________________ Date: ________ M. Reyes Tenant: ______________________ Date: ________ Dana Whitfield
An early termination is a contract: it binds only once every tenant on the lease and the landlord have signed it.
Which letter the situation calls for
Most disputes at the end of a tenancy start with the wrong document. A lease termination letter and a notice to vacate look alike on paper and do different legal jobs.
| Situation | Document | Who has to sign |
|---|---|---|
| Both sides want out of a fixed term early | Termination agreement (this sheet) | Landlord and every tenant |
| Tenant asks to leave early and you say yes | Acceptance letter (this sheet) | Landlord and every tenant |
| Fixed term ends and you will not renew | Non-renewal notice (this sheet) | Landlord only |
| Month-to-month tenancy you want to end | Notice to vacate | Landlord only |
| Unpaid rent or a lease breach | An eviction notice | Landlord only |
| Servicemember with qualifying orders | The tenant's own written notice | Tenant; you cannot refuse it |
If you would rather keep the tenant, the opposite document is the lease extension agreement.
What the release terms must settle
An early termination is a small contract. Anything it leaves unsaid stays governed by the lease, which assumed the tenancy would run to its end date. Settle each of these in writing:
- The last day of rent. If it falls mid-month, work the final figure in the prorated rent calculator and write the number in.
- The fee, or that there is none. A fee is a negotiated price for the release, set against what an empty month costs you in the turnover cost calculator.
- Keys, fobs and remotes. A time and a place, because possession passes when the keys do.
- The deposit. The release does not change the deposit rules: walk the unit with the move-out inspection checklist and itemise with the deduction calculator.
- Mutual release. Once both sides perform, neither owes the other anything for the period after the termination date.
Every name on the lease signs
Where the lease makes co-tenants jointly liable, a release signed by one of two tenants leaves the other still bound and the unit only half handed back. Get every signature, or the agreement is not finished.
Servicemembers: the one termination you do not negotiate
Under the Servicemembers Civil Relief Act a tenant who enters military service, or who receives permanent-change-of-station orders or deployment orders for at least 90 days after signing, may terminate the lease by delivering written notice with a copy of the orders (50 U.S.C. § 3955, checked 2026-10-18).
- For a lease with monthly rent, termination takes effect 30 days after the next rent due date following delivery.
- You may not impose an early termination charge; unpaid rent before that date is prorated, and lease charges such as reasonable excess wear still apply.
- Rent paid in advance for the period after termination is refunded within 30 days of the effective date.
Do not send a termination agreement with a fee to a tenant who has handed you military orders. Acknowledge the notice in writing, confirm the effective date, and schedule the inspection.
After the keys come back
The deposit clock runs from move-out, not from the date on the lease. In California the itemised statement is due no later than 21 calendar days after the tenant vacates (Civ. Code § 1950.5, checked 2026-10-18); for everywhere else see security deposit return deadlines and check your own state's statute.
Signing by e-signature is fine for most landlords: federal law says a contract in interstate commerce may not be denied effect solely because an electronic signature was used to form it (15 U.S.C. § 7001, checked 2026-10-18). Keep the signed copy with the lease in the tenant's file.
Sources read for this page
- 50 U.S.C. § 3955checked 2026-10-18
- Cal. Civ. Code § 1950.5checked 2026-10-18
- 15 U.S.C. § 7001checked 2026-10-18