Key Takeaways

  • A not renewing lease letter clearly communicates the landlord’s decision not to continue a lease after expiration.
  • The letter should balance firmness with professionalism and courtesy.
  • Key elements include lease expiration date, move-out instructions, refund details, and contact information.
  • Legal requirements for notice periods vary by state; compliance is critical.
  • Landlords must avoid discrimination or retaliation under federal and state fair housing laws.
  • The letter should provide information about next steps, possible charges for holdover tenancy, and the eviction process if needed.
  • Professional templates and legal help are available to assist in drafting compliant and respectful letters.

A not renewing contract letter is a letter sent when a landlord decides not to renew a lease with a tenant. This is legal after a lease expires. Laws vary by state as to notice requirements and what must be included in the document.

When to Use a Not Renewing Contract Letter

You use a not renewing contract letter when you need to notify someone, such as an employee, policyholder, or tenant, that you are discontinuing your contract. When written professionally and tactfully, this is a way to make a separation go more smoothly, saving time and effort.

It's important to strike a balance between being firm in your decision not to renew and considering the other party's feelings. Most letters should include:

  • A clearly stated purpose without ambiguity to cause confusion later.
  • An opening that tells the recipient why they are receiving the letter, i.e. because of an existing relationship with the sender.
  • A statement that the contract between the recipient's business or organization and the sender is not being renewed.
  • A description of any options available to the recipient. Include timeframes, any alternative possibilities, and, in the case of employment contracts, instructions as to benefits such as vacation time. Also, explain the recipients' responsibilities through the end of the contract if the termination is not effective immediately.
  • An explanation of the appeals process if one is available. Include the contact information for the person in charge of that process or a link to an online source where the recipient can find more information.
  • A signature that includes your name and title along with contact information so the recipient can ask any follow-up questions.
  • A copy of the policy change, if the decision not to renew is for that reason.

If the situation involves a sensitive topic, such as an employment contract, you should not send the letter until after you've talked with the person by phone or in person to explain your decision not to renew.

Legal Requirements and Timing for Lease Non-Renewal Notices

The legal requirements for sending a not renewing lease letter vary based on the lease type and the jurisdiction. Generally, landlords must comply with state laws regarding the amount of notice required:

  • Fixed-Term Leases: If a lease has a specific end date, landlords usually must provide advance written notice (often 30 to 60 days) if they do not intend to renew.
  • Month-to-Month Tenancies: Notice periods are typically shorter, such as 15 to 30 days.
  • Weekly Rentals: Notice can sometimes be as little as 7 days.

Failure to provide the proper notice could result in the lease automatically renewing under the same terms or expose the landlord to legal claims. Always consult local landlord-tenant laws to confirm the appropriate notice period for your situation.

In addition, landlords must not discriminate against tenants based on race, color, religion, national origin, sex, familial status, or disability. Violating fair housing laws can lead to serious legal consequences​.

Be Honest and Courteous

It's best to tell the full truth about why you decided not to renew a contract. The recipient deserves that courtesy. Often, the reason has nothing to do with the recipient. Instead, it may be the result of a policy change, budget revision, or elimination of a position or function.

If you do terminate a contract due to a performance issue, be specific about what the issues were and give examples. Avoid language that is catty or too accusatory. Choose words that are calm and professional. Be ready to support any statements related to misbehavior or poor performance.

Even when delivering bad news, you should remain professional and courteous. The recipient may be surprised and upset to receive the notice of non-renewal, especially if it represents a major change in his or her life. Always thank the recipient for his or her service and wish them the best for the future. Don't say anything that would make the recipient think you are not confident in your decision. That can lead the recipient to think he or she should fight against the decision, possibly even in court.

Common Reasons for Not Renewing a Lease

While a not renewing lease letter does not require a detailed explanation, providing a simple and truthful reason can foster goodwill. Common reasons include:

  • The property is being sold.
  • The landlord plans to renovate or repurpose the property.
  • Financial considerations, such as adjusting rental rates to current market value.
  • Personal use of the property (e.g., family member moving in).
  • Tenant issues such as repeated late payments, property damage, or violations of lease terms.

Importantly, landlords should avoid citing reasons that could be perceived as discriminatory or retaliatory, ensuring compliance with fair housing regulations.​

Example of a Non-Renewal of Lease Letter

These paragraphs are examples from some non-renewal of lease letters.

Please accept this letter as notice that the lease currently in effect will expire at midnight on (the appropriate date) and will not be renewed. Options for month-to-month tenancy are not available. (If you live in a state that requires such a disclosure, include a statement similar to this.) The lease agreement will not be renewed because: (list the reasons briefly, such as a business decision). This is not the place to accuse the tenant of doing anything wrong.

By law, you must surrender the premises and return all keys to the landlord or another agent at the lease expiration. The premises must be in the same state as when you moved in excepting normal wear and tear.

The records indicate that you paid a security deposit of (dollar amount). If you are due a refund after any repairs, cleaning and outstanding rent are deducted, it will be mailed to your new address within (the number of days required by your state, usually 30 days at the most) after the premises are surrendered. If we do not have a new address on file, the refund will be sent to your last known residence.

Additional Tips for Drafting an Effective Non-Renewal Letter

When writing a not renewing lease letter, keep the following best practices in mind to ensure clarity and professionalism:

  • Use Clear Language: Avoid legal jargon or ambiguous statements. Clearly state that the lease will not be renewed and specify the move-out date.
  • Include Property Details: Mention the property address and the names of all tenants on the lease.
  • State the Lease End Date: Clearly outline the final date the tenant can occupy the premises.
  • Explain Holdover Consequences: If applicable, inform tenants that remaining beyond the lease term may result in double rent charges or eviction proceedings​​.
  • Avoid "Self-Help" Evictions: Remind tenants that legal eviction proceedings will be pursued if they do not vacate; landlords cannot forcibly remove tenants by changing locks or cutting off utilities​.
  • Maintain a Professional Tone: Thank the tenant for their time at the property, even if there were issues during the tenancy.
  • Document Delivery: Send the letter by certified mail, email, or personal delivery to ensure proof of notice.

By following these guidelines, landlords can minimize misunderstandings and protect themselves legally.

Frequently Asked Questions

  1. What should a not renewing lease letter include?
    It should include the tenant's name, property address, lease expiration date, a statement of non-renewal, move-out instructions, refund details, and landlord contact information.
  2. How much notice do I need to give a tenant not renewing their lease?
    Notice requirements vary by state but typically range from 15 to 60 days depending on whether the lease is fixed-term or month-to-month.
  3. Can I refuse to renew a lease without giving a reason?
    Yes, as long as you comply with local notice laws and do not discriminate against the tenant based on protected characteristics.
  4. What happens if a tenant does not move out after the lease expires?
    You must pursue formal eviction proceedings through the court. You cannot forcibly remove the tenant or change the locks yourself.
  5. Is a conversation with the tenant necessary before sending a not renewing lease letter?
    While not legally required, it is recommended, especially for sensitive situations, to avoid surprising the tenant and to maintain professionalism.

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