Leases and Rental Agreements
FAQ
What
you need to know to create a fair, legally valid agreement -- and what
happens if the landlord or tenant wants to break it
From
the Nolo.com Landlord and Tenant Center
Why is it important to sign a lease or rental agreement?
The lease or rental agreement is the key document of the tenancy, setting
out important issues such as:
- the length of the tenancy
- the amount of rent and deposits the tenant must pay
- the number of people who can live on the rental property
- who pays for utilities
- whether the tenant may have pets
- whether the tenant may sublet the property
- the landlord's access to the rental property, and
- who pays attorney's fees if there is a lawsuit.
Leases and rental agreements should always be in writing, even though
most states allow them to be oral (spoken). While oral agreements may
seem easy and informal, they often lead to disputes. If a tenant and landlord
later disagree about key agreements, such as whether or not the tenant
can sublet, the end result is all too likely to be a court argument over
who said what to whom, when and in what context. This is particularly
a problem with long-term leases, so courts in most states will not enforce
oral agreements after the passage of one year.
What's the difference between a rental agreement and a lease?
The biggest difference is the period of occupancy. A written rental agreement
provides for a tenancy of a short period (often 30 days). The tenancy
is automatically renewed at the end of this period unless the tenant or
landlord ends it by giving written notice, typically 30 days. For these
month-to-month rentals (meaning the rent is paid monthly), the landlord
can change the terms of the agreement with proper written notice, subject
to any rent control laws. This notice is usually 30 days, but can be shorter
in some states if the rent is paid weekly or bi-weekly, or if the landlord
and tenant agree.
A written lease, on the other hand, gives a tenant the right to occupy
a rental unit for a set term -- most often for six months or a year but
sometimes longer -- if the tenant pays the rent and complies with other
lease provisions. Unlike a rental agreement, when a lease expires it does
not usually automatically renew itself. A tenant who stays on with the
landlord's consent will generally be considered a month-to-month tenant.
In addition, with a fixed-term lease, the landlord cannot raise the rent
or change other terms of the tenancy during the lease, unless the changes
are specifically provided for in the lease, or the tenant agrees.
What happens if a tenant breaks a long-term lease?
As a general rule, a tenant may not legally break a lease unless the
landlord significantly violates its terms -- for example, by failing to
make necessary repairs, or by failing to comply with an important law
concerning health or safety. A few states have laws that allow tenants
to break a lease because of health problems or a job relocation that requires
a permanent move.
A tenant who breaks a lease without good cause will be responsible for
the remainder of the rent due under the lease term. In most states, however,
a landlord has a legal duty to try to find a new tenant as soon as possible
-- no matter what the tenant's reason for leaving -- rather than charge
the tenant for the total remaining rent due under the lease.
When can a landlord legally break a lease and end a tenancy?
A landlord may legally break a lease if a tenant significantly violates
its terms or the law -- for example, by paying the rent late, keeping
a dog in violation of a no-pets clause in the lease, substantially damaging
the property or participating in illegal activities on or near the premises,
such as selling drugs.
A landlord must first send the tenant a notice stating that the tenancy
has been terminated. State laws set out very detailed requirements as
to how a landlord must write and deliver (serve) a termination notice.
Depending on what the tenant has done wrong, the termination notice may
state that the tenancy is over and warn the tenant that he or she must
vacate the premises or face an eviction lawsuit. Or, the notice may give
the tenant a few days to clean up his or her act -- for example, pay the
rent or find a new home for the dog. If the tenant fixes the problem or
leaves as directed, no one goes to court. If a tenant doesn't comply with
the termination notice, the landlord can file a lawsuit to evict the tenant.
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