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Rental Agreement Termination Letter

Many rental agreements are based on a contract, whichspecifies the term of the agreement and under what conditions the agreement can be terminated. Protect yourself from financial penalties by writing a termination letter that holds true to the signed agreement or that justifies your reasons for terminating the agreement early.

Format and Content

Write the letter in time to allow for any advance notification required, including 2 to 3 days for postal delivery. If you are breaking the rental agreement early, state your reasons for doing so along with the evidence you have to support your case. Include a statement of termination intent in the opening paragraph of the letter and the exact date the termination will take effect. To avoid conflicts concerning the date of delivery, send the letter by certified mail with a return receipt requested.


In this sample termination letter, the owner of a business is ending a rental agreement before the agreed to date. The owner states he will pay for the penalty for breaking the agreement early. He includes the reason why he is terminating the agreement and specifies when and how he would like to return the rental property in his possession.

Dear Mr. Post,

This letter is to inform you that on behalf of my company, Fireside Patios, I will be terminating our furniture rental agreement effective October 31, 2013. On November 1, my company will be relocating to our new facilities. While I have enjoyed the convenience and quality of the furniture provided by your company, I have decided to purchase the furniture for our new facilities.

My records show that our account is paid in full through October 31, 2013. As per the rental contract agreement, we have taken excellent care of the furniture and we are returning it in good condition, minus normal wear and tear. According to the conditions of our contract, I owe a penalty for breaking the contract early. I intend to pay this penalty, in the amount of $467.32, on or before the termination date listed in this letter.

I would like to schedule a pickup of the furniture during the afternoon of October 31, 2013. I will be present during this time and would like to conduct an inspection of the furniture with you before it is removed from the premises. I expect a full return of our security deposit in the amount of $2,500.00 within 10 days of the furniture being returned as specified in our contract.

I am completely satisfied with the services and the high quality furniture provided by your company. Although I am no longer in the market for rental furniture, I will be happy to recommend you to others. As a business owner, I know that customer testimonies carry a lot of weight in the consumer decision-making process. Upon request, I will be happy to supply you with a customer review in writing that you may use on your website or anywhere else you feel is appropriate. If you have any questions, you may call me at (555)-555-5555.


Wayne Sheridan

Wayne Sheridan, Owner

Fireside Patios, Inc.