Landlord's Letter to End Lease with a Definite Term

A Landlord's Letter to End Lease is a document used by the landlord to inform the tenant that the lease agreement with a definite term concerning a real property whether land, building, or other real property, that they have previously entered into will be terminated. This document refers to situations where the landlord would choose not to renew the lease agreement with the tenant, or to pre-terminate the agreement or end the lease before it lapses under their agreement.

If the landlord wants to pre-terminate the lease agreement, it must be based on a valid reason or a ground under the lease agreement allowing the landlord to terminate the lease agreement before it lapses.

For example, if the lease agreement prohibits sub-leasing or leasing of the real property by the tenant to another person without the landlord's consent, and the lease provides that this is a ground for terminating the lease. Then the landlord can pre-terminate the lease.

In case of non-renewal, the period within which the landlord should notify the tenant of the non-renewal may be included. This period is generally found in the lease agreement.

This document also is used to inform the tenant of the responsibilities and obligations it may have after the termination of the lease such as payment of the outstanding rent, penalties, and damages that may have occurred during the tenant's occupancy.

This letter intends to notify the tenant about the termination and should therefore not be used in case the tenant does not vacate the property after the lease contract has been terminated (unlawful detainer). If termination has already been made and the tenant refuses to vacate the property, then a Demand Letter for Ejectment is the proper document to be sent to the tenant.

A Residential or Commercial Lease Agreement may be reviewed to determine the terms and conditions of the lease agreement and whether there are certain obligations concerning outstanding rent, penalties, or damages that the tenant may be liable for. Upon the tenant's payment of his outstanding obligations, a Rent Receipt letter may be used to prove and acknowledge such payment.

In case it is the tenant who wishes to end or terminate the lease agreement, a Renter's Letter to End Lease may be used instead of this letter.

How to use this document

The sender and the recipient may either be individuals or organizations and their identities must be provided. This letter can be used if the landlord wants to not renew the lease agreement with the tenant or to pre-terminate the agreement or end the lease before it lapses under their agreement. If the landlord wants to terminate the lease agreement before it ends, the reason for the pre-termination may be the tenant's failure to pay rent, violation of the lease agreement, or due to an unforeseen event (i.e. calamity, earthquake, or accident), and the details surrounding the same should also be provided.

In both cases, the letter will include the following information concerning the lease:

• the address where the leased real property, whether land, building, or other real property is located.
• the start and end date of the lease agreement they have previously entered into.
• the notice period, or the period within which the landlord should send a notice to the tenant for the non-renewal of the lease agreement. (In case the termination is based on non-renewal of the lease agreement)
• the date when the tenant should vacate the premises.
• the details concerning the outstanding rent that is yet to be paid by the tenant.
• the payment of other obligations such as damages and penalties and the reasons for the same.
• the security deposit and its amount, and when it should be returned if it will not be claimed due to penalties or damages.

After completing the details in the letter, two copies must be printed, signed, and sent to the tenant. After which, the landlord must keep a copy for record purposes.

Applicable law

Matters related to leases and contracts are generally governed by the Civil Code of the Philippines. Additionally, other laws such as Republic Act No. 9653 (the "Rent Control Act") as extended by the National Human Settlements Board Resolution No. 2021-02, governs lease contracts that fall under the following conditions:

1. The property is located in the National Capital Region or highly urbanized cities and the total monthly rent ranges from One Peso (P1.00) to Ten Thousand Pesos (P10,000.00)
2. The property is located in other areas and the monthly rent ranges from One Peso (P1.00) to Five Thousand Pesos (P5,000.00).

The lease agreement for the lease of the property may also contain provisions on notice and penalties for certain acts such as terminating the lease.

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