What should be included in an end of tenancy agreement letter?

In most cases, a tenancy ends when the tenants decide to leave and move on. But in some instances, it’s the landlord who chooses to give notice and end the tenancy agreement. This could be because they have decided to sell the property, move into the property themselves or perhaps they are dealing with problematic tenants.

Have you found yourself in this position? If so, you will need to provide your tenant with a ‘notice to quit’. Alongside this, it is advisable to also provide an end of tenancy agreement letter. This is a document that outlines the terms of a tenancy agreement’s end.

We’re here to explain exactly what should be included in your end of tenancy agreement letter depending on the type of tenancy agreement in question and its terms, and the processes you need to follow for early tenancy termination.

Your end of tenancy agreement letter

If you decide to end a tenancy, you should provide your tenant with written notice in the form of an end of tenancy agreement letter. Your end of tenancy agreement letter should include:

• Names and contact details of you and your tenant/s
• The address of the rental property in question
• The reason for termination
• The date your tenant must vacate by
• The date that the notice is being served
• The original lease agreement’s end date or the relevant clause that allows termination
• Details of the final rent payment and acknowledgement of any changes to this if you intend to end the tenancy before the month-end
• Details of the final inspection to determine whether any deductions need to be made from their deposit
• Deposit return details such as when the deposit will be returned and any possible deposit deductions
• Any other information about the move-out procedure i.e. cleaning requirements, key return process, final meter readings
• Your signature and a space for your tenant’s signature.

And remember – always keep a copy of your end of tenancy agreement letter and any following correspondence between you and your tenant.

What if my tenant wants to end the tenancy?

If a tenant wants to end their tenancy, they must follow a similar process to a landlord by giving written notice. They are bound by certain conditions and limitations depending on the type of tenancy.

If your tenant does not give notice in the correct way as per the type of tenancy, then they may not be able to end their tenancy and therefore may still need to pay rent.

A tenant must give notice within the relevant notice period and include the following:

• Names and contact details
• The date they intend to vacate the property
• The address of the rental property in question.

They do not need to state their reasoning for ending their tenancy but if they decide to, they may also include this within their notice.

Assured Shorthold Tenancy – can I serve an early tenancy termination?

In the case of an Assured Shorthold Tenancy (AST), as long as you are not asking your tenant to leave before the end of the fixed term, you can serve an early tenancy termination without giving any reason.

If you wish to do this, you must also ensure that you’ve protected their tenancy deposit in a tenancy deposit scheme and that the date you’re asking them to leave is at least 6 months after the original tenancy began. You must also give your tenants at least 2 months’ notice.

You can only terminate a tenancy before the end of the fixed term if your tenant has breached the terms of the tenancy agreement or unless there is a break clause in the tenancy agreement. A break clause usually allows you to end the tenancy after six months. Ensure you make this clear in your end of tenancy agreement letter.

Ending other types of tenancies

How and when you can end a tenancy will depend on the type of tenancy. We’ve covered how you can end a fixed term tenancy – but what about other types?

Assured tenancies

Assured tenancies are predominantly used by Housing Associations and therefore aim to give tenants long-term tenancy rights. It can be difficult for a landlord to end these types of tenancies without good reason. You can only issue a Section 8 notice and must present the grounds in court.

Excluded tenancies

If you lodge with your tenant and share a kitchen or bathroom with them, then you will likely have an excluded tenancy. If you wish to end your excluded tenancy for any reason, you simply need to give ‘reasonable notice’ to quit. This does not need to be in writing and the notice should be the length of the rental payment period. For example, if you collect rent monthly, you’ll need to give one month’s notice.

Non-excluded tenancies

If you have a non-excluded tenancy, you can end the tenancy agreement at any time by serving a written ‘notice to quit’. This notice period will depend on the tenancy or agreement but it’s usually around 4 weeks.

Ensure clarity and avoid misunderstandings with a thorough and professional end of tenancy agreement letter. Whether it’s an early tenancy termination or not, the end of a tenancy doesn’t need to be complex. A well-drafted end of tenancy agreement letter leads to a smooth and efficient transition when tenants vacate your property.

A well-drafted end of tenancy agreement letter helps ensure clarity and avoids misunderstandings between landlords and tenants. By including the elements listed above, landlords can facilitate a smooth and efficient transition when tenants vacate the property, protecting both parties’ interests and ensuring legal compliance.

Make sure your property is protected with landlord insurance. Get a quote or call us at 01788 818670 today, and we’ll help with all of your insurance needs.