Chapter 9.1: Rental Agreements

Chapter 9.1 Vocab

• Lease– Contract between a tenant and a landlord

• Lessee– Tenant

• Lessor– Landlord

• Tenancy– Possession of land or property as a tenant

Types of Tenacities

• Tenancy for Years

• Periodic Tenancy

• Tenancy at Will

• Tenancy at Sufferance

Tenancy for Years• The right to occupy property for a definite

or fixed period of time.– 6 months– 1 year– 5 years– 99 years

• Any amount of years, as long as the amount is definite

• Some states require every tenancy to be in writing, some require it to be in writing only if it is over 1 year.

Periodic Tenancy

• Tenancy that continues for successive, fixed periods of time.– Year to Year– Month to Month– Week to Week

• Either party can terminate this tenancy by giving advanced notice to the other party.

• If notice is not given, tenancy continues for the same period of time.

Tenancy at Will

• Interest in real estate property that continues for an indefinite period of time.

• No writing is necessary to create this tenancy.

• It ends when the landlords or tenant gives notice required by law.– Usually 30 days noticed required

Tenancy at Sufferance

• Occurs when a tenant does not leave the premises when the tenancy expires.

• AKA: holdover tenants- they are wrongdoers.

• They no longer have legal rights to the property.

• They must pay rent for the illegal occupancy.

Lease Agreement• Terms

– Rights and duties of the landlord and tenant.– Tenant Rights: possession and continued

occupancy (free from intrusion).– Landlord Rights: rent and possession of

property in good condition at end of lease• Security deposit

– Amount of money a tenant will pay at the beginning of a lease in addition to first months rent. Landlord uses it to cover damage done to property upon moving out.

Lease Agreement

• Assignment and Subletting– Assignment: transferring remaining period

of lease to someone else.– Sublease: transferring of part of the term of a

lease, but not the remainder of it, to someone else.

• Options to renew– Lease may contain provisions allowing renter

the option to renew the lease for one or more additional periods.

Responsibilities of Landlord• Refrain from Discrimination

– You can’t refuse to rent property to any person because of race, religion, color, national origin, gender, age, ancestry, or marital status based on the Federal Civil Right Act

• Maintain the Premise– Must be fit for human habitation– Must be relatively clean, properly heated,

furnished with utilities, and safe.• Transfer peaceful possession

– Tenant are entitled to peaceful possession and quiet enjoyment of premise

Tenants Duties and Obligations• Abide by the terms of the lease

– Pay rent when it is due– Observe the valid restrictions of the lease, failure to abide by the terms

can result in eviction

• Avoid Waste– Cant damage or destroy property- decreases property value– Property must be in same condition it was when they moved in

• Return fixtures– Tenant must return Fixtures: built-in stoves, kitchen cabinets, and

ceiling light fixtures

To determine if an items is a fixture courts consider the following:

1. Has there been temporary or permanent installation of the fixture?

2. Can it be removed without damage?

3. What was the intent of the parties at the time the attachment was made?

Eviction

• Occurs when a landlord deprives a tenant of the possession of the premise.

• Reasons for eviction:– Not paying rent– Staying after lease has expired– Damaging the premise– Violating provisions in lease

• Landlord CANNOT use force to evict a tenant.• Landlord must obtain court order, officer carries

out eviction.

Tort Liability

• When someone is injured on rented or leased property, both the landlord and the tenant may be liable.

• Whoever is in control of the area where the injury occurs determines liability.

• Landlords can be held liable for defects in common areas: hallways, stairs, etc.

• Tenants can be held liable for defects in private areas.