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Tags: finance, leasing, lease termination
 Leasing property to other people is one way of generating income. You will be receiving monthly income according to the duration of the lease term. Before agreeing to it, you as the lessor and the lessee signed a lease contract. The said contract will serve as a document which lists all the terms and conditions.
It will support all the rights and obligations of the lessor and the lessee. In case of breach, the contract will serve as a legal proof. However, sometimes you are contemplating a lease termination even before the contract expires. This is due to some violations in the contract. Tenants are sometimes negligent to the property.
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They don’t take care of the property and even cause damages. Of course, you just can’t sit down in there and let your tenant ruin your property. You have invested huge amount of money and you want it properly taken cared of. Even if you are the owner, the tenants have also fair share in the responsibility of managing it.
Another thing is the monthly payment. Some tenants can be irresponsible at times in their monthly dues. They tend to forget their obligations. You as the lessor are not glad about it- you want your tenants to pay on time. You also need the money to pay for your expenses.
You immediately want to terminate the lease. On the other hand, you can’t simply evict them from your property. Even if the situations can be a ground for a termination, you still have to follow some rules. In the state where you live in, there are laws governing leases. The said law has equal protection on lessor as well as lessee.
You have to comply with the laws in order to make the termination in a legal way. In lease termination, it also protects tenants. Curable breach of contracts doesn’t necessarily give rights to the lessor for executing eviction. The law gives an opportunity for lessees to correct their wrong actions.
So if you really want to end the term, you must give notice to your tenants. If you won’t serve a notice, you’re in for a trouble. You can be sued and might pay for legal fees and damages. In lease termination, you should do it legally so as to avoid being sued.
You must first secure a Notice of Lease Termination Form. You can consult a lawyer regarding the draft of the said form. Then you send it to your tenant- either by mail or by handing it to them personally. If no one is around, you can just post it to the door.
In lease termination, make sure that the tenants are aware of the said notice. If your tenants have made an action regarding your complaints, give them a chance. You can waive your right for a lease termination. But in case, they default in payment again, you can impose it. If they will sue you in court, you have all the proof to support your claim.
There is breach in the contract and the notice is properly served. The court will surely be on your side. Terminating a lease is not just an easy undertaking, you should be aware of its negative consequences. You must do it legally so as to avoid lawsuits in the future.
About the author
The author of this article Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick recently published a book on how to manage your money and attract Wealth and Financial Freedom. More info on his Finance Planning course is available HERE.
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