A Review of Residential Landlord-Tenant Relationships

Owen Ahearn

May 3, 2009

Breach of Warranty of Habitability

History of Landlord-Tenant Relationships

The modern landlord-tenant relationship developed from statutes and laws, judicial decisions, and contractual relationships. (Landlord and Tenant, 2009)

What is the Fair Housing Act?

The Fair Housing Act of 1968 as amended, prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability). (HUD.Gov, 2008)

Breach of Warranty of HabitabilityLandlord Tenant

What is a lease?

A lease is a written or oral agreement which is enforceable contract which defines the relationship between a landlord (Lessor) and a tenant (Lessee). The lease details the terms of the agreement including but not limited to: the unit condition, responsibilities of the owner and tenant, and payment obligations.

When is a unit habitable?

An apartment, home or residence that complies with the minimum housing laws, housing standards and ordinances is said to be “habitable”.

What is the purpose of minimum standards of fitness?

Many states have established minimum standards of fitness of human habitation. These laws are enacted by local municipalities to enforce strict standards for living.

What is a breach of warranty of habitability and the effects?

When minimum standards of housing are not met a breach of warranty of habitability has occurred. The effect of a breach of warranty of habitability is to make the lease for the uninhabitable premises void. The effect of a void lease is that the tenant need not pay rent. (Jennings, 2008, p. 188)

What are potential remedies for tenants?

Every state imposes restrictions and provides remedies, should either party fail to carry out their legal duty. The lease details the responsibilities for both the landlord and the tenant. When the responsibilities are not, remedies exist for both parties. The remedies include, but are not limited to: reduced rent, self help repairs, the right to sue for monetary damages, monetary damages, and an award of legal fees to the successful party.

What actions can owners take to reduce exposure?

All residential owners of real estate need to take responsibility for reducing risk to persons or property. Property owners and property managers can be held responsible for accidents that occur if the injured party can prove negligence.

Additional Action Steps

Obtain and carry proper insurance coverageConduct exterior property inspectionsConduct interior property inspectionsCorrect emergency issues within 24 hoursCorrect routine maintenance within 72 hoursUse indemnification clause in leasesPerform background and CORI checks on

employees Verify contractor licenses and obtain proper

insurance certificatesComply with local, state and federal housing laws

Final Action Step

Have as a professional contact, a real estate attorney specializing in landlord-tenant law.

References

HUD.Gov. (2008, April 8). Retrieved April 18, 2009, from Fair Housing Laws and Presidential Orders: http://www.hud.gov/offices/fheo/FHLaws/

Jennings, M. M. (2008). Real Estate Law, Eighth Edition (Vol. Eight). Mason, Ohio, USA: Thomson Higher Education.

Landlord and Tenant. (2009). Retrieved May 1, 2009, from Encarta.MSN.com: http://encarta.msn.com/encyclopedia_761558434/Landlord_and_Tenant.html#s2