Letter of intent to lease 2024 (guide + free samples)

A letter of intent to lease is a written document that expresses a person’s or organization’s intention to lease a residential or commercial real estate property to another person.

For example, if James wishes to rent out his home or commercial space, he may write a letter of intent to lease and send it to potential tenants who expressed interest to lease the property.

This is the most effective document for legally expressing and safeguarding your intention to lease residential, commercial, or other types of real estate.

Among other things, a letter of intent to lease can assist you to set the terms and conditions of the lease before signing the actual binding lease agreement.

To help you get the most out of it, here I will teach you

• What is a letter of intent to lease?
• Why do you need a letter of intent to lease?
• How do you write an effective letter of intent to lease?
• Letter of intent to lease sample
• Letter of intent to lease commercial property
• etc.

Let’s get started

What is a letter of intent to lease?

A letter of intent to lease is a brief statement of facts written by a person to show his intention to lease a residential or commercial real estate to another person or organization.

Who prepare this document? potential landlord or tenant?

Well!

A letter of intent to lease is commonly prepared by a landlord or his legal representative.

What about a tenant?

if you are a tenant and you want to lease a property, you can communicate your intent through a rental application letter instead of a letter of intent to lease.

Is a letter of intent to lease binding?

Generally, a letter of intent to lease is not binding.

That means neither you nor the other part can legally enforce it.

Why?

Because, this letter is generally considered as mere preliminary expression of interest in leasing your property, thing that can help you initiate negotiations with potential tenant(s).

However, a letter of intent to lease may become binding when you include the provision that the letter will be binding, otherwise it will be difficult to enforce the letter.

Related

• Letter of intent to purchase real estate
• Letter of intent to purchase business

Why do you need a letter of intent to lease?

A letter of intent to lease will help you establish the parameters of the lease agreement prior to signing before signing the final lease document.

When I’m saying parameters I mean key terms and conditions that you intend to include in the final lease agreement such as your rental price, duration of the lease, etc.

Apart from that, you need a letter of intent to lease to;

• specify the schedule for completing the negotiations and moving in.
• determine whether you are dealing with the right person or not.
• forbid the potential tenant from discussing the same transaction with other landlords.
• etc

How to write an effective letter of intent to lease

A letter of intent to lease is written in a business letter format. Begin your letter with your address and contact information, followed by a date and the recipient’s address, and state that you are intending to lease your property according to the terms contained in your letter.

Your letter of intent to lease must contain all terms and conditions of your expected lease.

I personally call a letter of intent to lease ‘an advance lease agreement’ because you can easily convert it into a legally binding lease by simply changing a TITLE.

Here is how you can write an effective letter of intent lease that, if accepted, you may transform into a FINAL lease agreement by simply changing the title.

• Provide your name/organization, address, and contact information
• Include the date of the letter
• Include the potential lessee’s name, address, and contact information
• Provide the description of the property you want to lease (location, Block No. Lot no. etc)
• Provide the proposed lease term
• Provide the proposed rent
• Specify the security deposit
• State whether you wish the letter to be binding or not.
• Provide a confidentiality clause
• Include the termination clause (how the intentions should be deemed to be terminated)
• Include the acceptance clause i.e how the intentions will be deemed to be accepted
• Specify the governing law
• Maintain a professional tone
• Be honest
• Signatures
• Include any significant term or condition that you want the other part to know-parking, sublet, pets, smoking, maintenance, etc.

Letter of intent to lease sample (residential property)

The following is a sample of the Letter of intent to lease a residential property

Your Name
Address
City, State, Zip Code
phone
email
website

DATE

[Potential lessee’s Name]
[Potential lessee’s Street Address]
[Potential lessee’s City, State, and Zip Code]

Re: Intention to Lease

Dear [Potential lessee’s last name]

I am writing with great enthusiasm to convey my desire to lease my apartment if we can agree on the terms and conditions outlined in this letter.

The purpose of this letter is to establish some of the basic terms and conditions of the undersigned parties’ proposed lease.

The terms set forth in this Letter [will/will not] become binding unless the parties agree and execute a more comprehensive “Lease Agreement,” as anticipated below by the section of this Letter titled “Binding effect.”

Effective Date

[write the date that this letter of intent will be deemed effective]

Lessor

[Insert the full name of the Lessor]

Lessee

[Insert the full name of the Lessee]

Property

Location: [City, State, and Zip Code]

Legal Description: Block # Lot: #

Property Type

The Property is defined as a [residential/plex/condo/ etc]

Lease Term

The lease will be for a fixed term of [number of months/years] beginning on the [start date] and ending on the [end date].

Rent

The monthly base rent of [amount in words and numbers] shall be paid on the first of each month, with the first payment due prior to or at the start of the lease.

Expenses

The Lessee must pay the following monthly expenses in addition to the Base Rent: [describe the expenses- electricity, gas heating, etc]

The Lessor is obligated to pay the following monthly expenses: [describe expenses- maintenance costs etc]

 Late Rent

If the Lessee does not pay the Base Rent within 15 days of the due date, a late fee of [amount in words and numbers] may be imposed each day until the overdue amount is paid.

(see: late rent notice to a tenant template)

Security Deposit

A refundable security deposit of [amount in words and digits] is required prior to or at the time of signing a lease.

See: Security deposit refund request letter

Subletting

The Lessee may not sublet the Premises without first receiving the Lessor’s prior written consent.

Pets

The Lessee is permitted to have two pets on the premises. The following pets are permitted: Cats, dogs, and other small confined animals

Lease Termination

Each party has the right to terminate the lease by giving the other party at least (30/34/60/90 days’] notice.

(see: Notice to terminate a lease sample)

Binding effect

This Letter of Intent should not be considered binding.

The provisions mentioned above are merely for the purpose of establishing a future agreement, to which neither the Lessor nor the Lessee is bound.

(if you want the better to be binding, use the following clause)

Binding effect

This Letter of intent shall be considered binding.

Therefore, the parties acknowledge that remedies at law will be inadequate for any breach of this Agreement and consequently agree that this Agreement shall be enforceable by specific performance.

The remedy of specific performance shall be cumulative of all of the rights at law or in equity of the parties under this Agreement.

Governing Law

This Letter of Intent shall be governed under the laws of the State of [name of the state]

Termination

This Letter of Intent will terminate if there has not been a formal agreement signed within [#] days from the Effective Date.

Acceptance

If you agree to the terms set forth above, please sign this Letter of Intent and return the duplicate copy within [#] business days of receipt.

LESSOR

Lessor’s Signature __________ Date __________

Print Name __________

LESSEE

Lessee’s Signature __________ Date __________

Print Name __________

letter of intent to lease pdf

Letter of intent to lease commercial property

A commercial lease letter of intent is a document that outlines the leasing conditions for the commercial property before a binding Lease agreement is signed,

The letter’s main purposes are to demonstrate the tenant’s commitment to the rental agreement and to provide each party with essential information about it.

By outlining the terms in this way, you may speed up the negotiation process and ensure that there are no misunderstandings before you sign.

The following is a sample of the Letter of intent to lease a commercial property

Letter of intent to lease commercial Space

Effective Date: [write the date that this letter of intent will be deemed effective]

Lessor: [Insert the full name of the Lessor]

Lessee: [Insert the full name of the Lessee]

Property:

Location: [City, State, and Zip Code]

Legal Description: Block # Lot: #

Property Use:

The Property is defined as a Commercial Space and the Premises will be used by the Lessee for business office space.

Lease Term

The lease will be for a fixed term of [number of months/years] beginning on the [start date] and ending on the [end date].

Rent

The monthly base rent of [amount in words and numbers] shall be paid on the first of each month, with the first payment due prior to or at the start of the lease.

Expenses

The Lessee must pay the following monthly expenses in addition to the Base Rent: [describe the expenses- electricity, gas heating, etc]

The Lessor is obligated to pay the following monthly expenses: [describe expenses- maintenance costs etc]

 Late Rent

If the Lessee does not pay the Base Rent within 15 days of the due date, a late fee of [amount in words and numbers] may be imposed each day until the overdue amount is paid.

Security Deposit

A refundable security deposit of [amount in words and digits] is required prior to or at the time of signing a lease.

Subletting

The Lessee may not sublet the Premises without first receiving the Lessor’s prior written consent.

Lease Renewal

Each party has the right to renew the lease by giving the other party at least (30/34/60/90 days’] notice.

(see: Lease Renewal Letter Sample)

Lease Termination

Each party has the right to terminate the lease by giving the other party at least (30/34/60/90 days’] notice.

Confidentiality

All Lease negotiations between the Lessor and the Lessee shall be kept confidential and shall not be divulged to anyone other than the parties’ respective advisors and internal personnel, as well as any relevant third (3rd) parties.

No press or other public releases will be issued to the general public concerning the lease without mutual consent or as required by law, and then only upon prior written notice to the other party unless otherwise not allowed.

Binding effect

This Letter of Intent should not be considered binding.

The provisions mentioned above are merely for the purpose of establishing a future agreement, to which neither the Lessor nor the Lessee is bound.

(if you want the better to be binding, use the following clause)

Binding effect

This Letter of intent shall be considered binding.

Therefore, the parties acknowledge that remedies at law will be inadequate for any breach of this Agreement and consequently agree that this Agreement shall be enforceable by specific performance.

The remedy of specific performance shall be cumulative of all of the rights at law or in equity of the parties under this Agreement.

Governing Law

This Letter of Intent shall be governed under the laws of the State of [name of the state]

Termination

This Letter of Intent will terminate if there has not been a formal agreement signed within [#] days from the Effective Date.

Acceptance

If you agree to the terms set forth above, please sign this Letter of Intent and return the duplicate copy within [#] business days of receipt.

LESSOR

Lessor’s Signature __________ Date __________

Print Name __________

LESSEE

Lessee’s Signature __________ Date __________

Print Name __________

Letter of intent to lease commercial property pdf

The following is a letter of intent to lease commercial property pdf format that you can free download for your offline use.