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 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 require 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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