Section 33.1

The Rental Agreement The Rental Agreement Section 33.1Section 33.1

Understanding Business and Personal Law


Renting a Place to Live

Section 33.1Section 33.1The Rental Agreement The Rental Agreement

Section 33.2Section 33.2Responsibilities of Landlord and Tenant Responsibilities of Landlord and Tenant

3333ChapterChapter Renting a PlaceRenting a Placeto Live to Live




What You’ll Learn

How to define the main types of tenancies How to define the main types of tenancies available to persons who rent real property available to persons who rent real property (p. 712)(p. 712)

How to describe some of the common How to describe some of the common covenants found in a lease (p. 714)covenants found in a lease (p. 714)




What You’ll Learn

How to summarize rent control laws How to summarize rent control laws (p. 718)(p. 718)




Why It’s Important

Knowing all you can about rental agreements Knowing all you can about rental agreements and the types of tenancies will help you and the types of tenancies will help you choose a place to live and know how to choose a place to live and know how to address disputes that may arise.address disputes that may arise.




Legal Terms

lessee (p. 712)lessee (p. 712)lessor (p. 712)lessor (p. 712)tenancy (p. 712)tenancy (p. 712)tenancy for years (p. 713)tenancy for years (p. 713)periodic tenancy (p.713)periodic tenancy (p.713)




Legal Terms

rent day (p. 713)rent day (p. 713)tenancy at will (p. 714)tenancy at will (p. 714)tenancy at sufferance (p. 714)tenancy at sufferance (p. 714)lease (p. 714)lease (p. 714)sublease (p. 716)sublease (p. 716)




Tenancy Types of Tenancies

Section OutlineSection Outline

Tenancy for YearsPeriodic TenancyTenancy at WillTenancy at Sufferance




The Lease Agreement Terms in a Lease

Section OutlineSection Outline

Rent Control




Pre-Learning Question Pre-Learning Question

What is a tenant?




Tenancy Tenancy

If you rent real property, such as an If you rent real property, such as an apartment or house, you are a apartment or house, you are a tenant.tenant.If you own real property and rent it If you own real property and rent it to someone else, you are a to someone else, you are a landlord.landlord.




Tenancy Tenancy

The contract between a tenant and a The contract between a tenant and a landlord is called a lease. landlord is called a lease.

In a lease, the tenant is known as the In a lease, the tenant is known as the lesseelessee, and the landlord is the , and the landlord is the lessorlessor..




33.133.1

What to Look for What to Look for in Selecting an Apartmentin Selecting an Apartment

Location Near school, work Near church, mosque,

synagogue Near shopping Near public

transportation Near recreation: parks,

museums




33.133.1


Finances Amount of monthly rent Amount of security

deposit Cost of utilities Length of lease




33.133.1


Building Condition of building and

grounds Parking facilities Recreation on premises Security system Condition of hallways,

stairs, and elevators Access to mailboxes




33.133.1


Layout and Facilities Size and condition of unit Type and controls of heating

and cooling systems Plumbing and water

pressure Type and condition of

appliances Condition of doors, locks,

windows, closets, and floors





What is a tenancy?




Although they rent from someone Although they rent from someone else, tenants own an interest in the else, tenants own an interest in the real estate they lease, called a real estate they lease, called a leasehold estate or leasehold estate or tenancytenancy..

Types of Tenancies Types of Tenancies




Types of Tenancies Types of Tenancies

The types of tenancies are The types of tenancies are

Tenancy for yearsTenancy for yearsPeriodic tenancyPeriodic tenancyTenancy at willTenancy at willTenancy at sufferanceTenancy at sufferance




Tenancy for Years Tenancy for Years

A A tenancy for yearstenancy for years is the right to is the right to occupy property for a definite or fixed occupy property for a definite or fixed period of time. period of time.

It may be for one week or 99 years, as It may be for one week or 99 years, as long as the time period is definite. long as the time period is definite.




A A periodic tenancyperiodic tenancy, also called a , also called a tenancy from year to year (or month to tenancy from year to year (or month to month, or week to week), is a tenancy month, or week to week), is a tenancy that continues for successive fixed that continues for successive fixed periods. periods.

Periodic Tenancy Periodic Tenancy





One of the parties may terminate this One of the parties may terminate this tenancy by giving advance notice to tenancy by giving advance notice to the other party.the other party.





The notice requirement differs from The notice requirement differs from state to state, but it is often the period state to state, but it is often the period between rent days. between rent days.

The The rent dayrent day is the day on which the is the day on which the rent is due.rent is due.




Tenancy at Will Tenancy at Will

A A tenancy at willtenancy at will is an interest in real is an interest in real property that continues for an property that continues for an indefinite period of time. indefinite period of time.

No written agreement is required to No written agreement is required to create this tenancy.create this tenancy.




Tenancy at Will Tenancy at Will

It is terminated when either the It is terminated when either the landlord or the tenant gives the notice landlord or the tenant gives the notice required by state laws, which is required by state laws, which is usually 30 days.usually 30 days.




Tenancy at Sufferance Tenancy at Sufferance

A A tenancy at sufferancetenancy at sufferance arises when arises when a tenant doesn’t leave the premises a tenant doesn’t leave the premises after his or her tenancy has expired. after his or her tenancy has expired.




Tenancy at Sufferance Tenancy at Sufferance

This situation often occurs when a This situation often occurs when a tenancy for years expires or when a tenancy for years expires or when a tenancy at will has been properly tenancy at will has been properly terminated by the landlord but the terminated by the landlord but the tenant remains in possession.tenant remains in possession.




Jill Stunzi signed a lease to rent an apartment for six months. What type of tenancy has she agreed to?




ANSWERANSWER

Tenancy for years.




Jamal Youngston has an oral agreement with Mary O’Donnell to rent her basement apartment until he graduates from college. What type of tenancy has he agreed to?




ANSWERANSWER

Tenancy at will.




Marcus Kennedy is a contract painter and often works for weeks on end away from home. During these times he often rents a hotel room from week to week. What type of tenancy is he agreeing to?




ANSWERANSWER

Periodic tenancy.





What is a lease agreement?




The Lease Agreement The Lease Agreement

A written agreement between a lessor A written agreement between a lessor and a lessee is called a and a lessee is called a leaselease. The . The lease creates the landlord-tenant lease creates the landlord-tenant relationship. It provides the tenant with relationship. It provides the tenant with exclusive possession and control of exclusive possession and control of the real property of the landlord.the real property of the landlord.




Terms in a Lease Terms in a Lease

The terms of a lease, known as The terms of a lease, known as covenants, set forth the rights and covenants, set forth the rights and duties of the landlord and tenant. duties of the landlord and tenant.




Terms in a Lease Terms in a Lease

Common terms, or covenants, found Common terms, or covenants, found in a lease include in a lease include

Security depositSecurity depositDecoration and repairsDecoration and repairsAssignment and sublettingAssignment and sublettingOption to renew or to purchase Option to renew or to purchase




Security Deposit Security Deposit

Landlords often require you to pay a Landlords often require you to pay a security deposit and the last month’s security deposit and the last month’s rent at the beginning of a tenancy in rent at the beginning of a tenancy in order to secure the payment of rent or order to secure the payment of rent or repairs for damages to the property.repairs for damages to the property.




Decoration and Repairs Decoration and Repairs

The landlord has no obligation to The landlord has no obligation to decorate the premises, unless the decorate the premises, unless the lease says so or it is required by lease says so or it is required by statute or local ordinance. statute or local ordinance.




Decoration and Repairs Decoration and Repairs

However, the landlord must make any However, the landlord must make any repairs necessary to keep the repairs necessary to keep the premises fit for living. This includes premises fit for living. This includes repairs such as fixing a leaky roof or a repairs such as fixing a leaky roof or a broken furnace.broken furnace.




Assignment and Subletting Assignment and Subletting

An assignment of a lease occurs An assignment of a lease occurs when you transfer the remaining when you transfer the remaining period of time in a lease to someone period of time in a lease to someone else.else.





A A subleasesublease occurs when you transfer occurs when you transfer part of the term of lease, but not the part of the term of lease, but not the remainder of it, to someone else.remainder of it, to someone else.





If a landlord doesn’t want a tenant to If a landlord doesn’t want a tenant to assign or sublet the property, a assign or sublet the property, a covenant in the lease must say that. covenant in the lease must say that.

Otherwise, a tenant may either assign Otherwise, a tenant may either assign or sublet the property to someone or sublet the property to someone else.else.




Option to Renew or to Purchase Option to Renew or to Purchase

The option to renew the lease gives The option to renew the lease gives renters the right to a new lease, under renters the right to a new lease, under the same terms, for an additional the same terms, for an additional period.period.




Option to Renew or to Purchase Option to Renew or to Purchase

The option to purchase the property is The option to purchase the property is an agreement by the lessor to sell the an agreement by the lessor to sell the property to the lessee for a stated property to the lessee for a stated price.price.





What is rent control?




Some large communities have passed Some large communities have passed rent control laws to keep rent within an rent control laws to keep rent within an affordable range. affordable range.

Rent Control Rent Control




These laws limit what landlords can These laws limit what landlords can charge for rental property and also charge for rental property and also often contain procedures that must be often contain procedures that must be followed before tenants can be followed before tenants can be evicted.evicted.

Rent Control Rent Control




Reviewing What You Learned

1. What is the difference between a tenancy for years, a periodic tenancy, and a tenancy at will?

Section 33.1 Assessment





A tenancy for years is for a fixed time period. A periodic tenancy continues for successive periods until one of the parities ends it by giving proper notice.


Answer





A tenancy at will is for an indefinite time period and is often an oral agreement.


Answer





2. Name the common covenants found in a lease.






Security deposit, decoration and repairs, assignment and subletting, and option to renew or to purchase.


Answer





3. Explain rent control laws.






Rent control laws exist to keep rents within an affordable range. The laws limit the amount of rent the landlords may charge for rental property.


Answer





They often contain procedures that must be followed before tenants can be evicted.


Answer





Critical Thinking ActivityLeasing Terms Imagine you are ready to rent a place to live. Make a list of covenants you would want in your lease, and explain why you would want these covenants.





Critical Thinking Activity AnswerLeasing Terms Answers will vary, but should reflect an understanding of the term covenant.





Legal Skills in ActionMaintaining the Premises The grounds surrounding the apartment complex where you live are full of trash. The grass hasn’t been mowed for weeks, and it looks pretty shabby.





Legal Skills in ActionMaintaining the Premises You’ve mentioned the problem to the landlord, but no action has been taken. Write a petition to circulate among the tenants to ask the landlord to hold a meeting to discuss the difficulty.





Legal Skills in Action AnswerMaintaining the Premises Petitions will vary, but should include the duties of the landlord in regards to the grounds of the property.

The Rental Agreement The Rental Agreement End of Section 33.1End of Section 33.1

Section 33.1

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