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U.S. Legal Forms, Inc. Multi-State Landlord-Tenant Handbook *** A general guide to the rights and obligations of landlords and tenants in the United States. ©2003 U.S. Legal Forms, Inc. All rights reserved. This Guide was developed by U.S. Legal Forms, Inc. (USLF), is protected by copyright, and may not be reprinted, distributed or displayed by any means without the express written consent of USLF. TABLE OF CONTENTS INTRODUCTION .......................................................................................................................... 1 DEFINITIONS................................................................................................................................ 2 I. THE RENTAL OR LEASE AGREEMENT ......................................................................... 8 A. Before the Agreement ................................................................................................... 8 1. For the tenant ....................................................................................................... 8 2. For the landlord .................................................................................................... 9 B. Importance of a Written Agreement ............................................................................. 9 1. The agreement should include at least the following......................................... 10 2. Late charges ....................................................................................................... 10 3. Resolving disputes ............................................................................................. 11 4. Understanding the rental agreement .................................................................. 11 a. What to watch out for................................................................................ 11 b. Utilities...................................................................................................... 12 5. Unsigned or undelivered agreements ................................................................. 12 C. What is a Lease? ......................................................................................................... 12 D. What is a Security Deposit? ........................................................................................ 13 E. Get a Written Inspection Report ................................................................................. 14 F. Living by the Landlord’s Rules .................................................................................. 14 G. If Circumstances Change ............................................................................................ 15 H. When is Discrimination Illegal? ................................................................................. 15 II. LIVING IN A RENTAL PROPERTY ................................................................................ 17 A. The Landlord’s Responsibilities ................................................................................. 17 B. Tenant Remedies......................................................................................................... 18 1. Remedies for landlord’s noncompliance in general........................................... 18 2. Remedies for landlord’s failure to supply essential services ............................. 19 3. Housing codes.................................................................................................... 20 C. Tenant Responsibilities............................................................................................... 20 D. Landlord Remedies ..................................................................................................... 21 E. If the Landlord Needs To Get In................................................................................. 22 F. Alterations ................................................................................................................... 23 G. Locks ........................................................................................................................... 23 H. Occupants and Visitors ............................................................................................... 23 I. Can the Landlord Raise the Rent?............................................................................... 24 J. Fire or Casua lty Damage ............................................................................................. 24 K. Condemned Dwellings ................................................................................................ 25 L. Moving Prior To the End of a Lease........................................................................... 25 M. Subleasing ................................................................................................................... 26 III. ENDING THE TENANCY ................................................................................................. 27 A. The Importance of Giving Notice ............................................................................... 27 1. How much notice is enough? ............................................................................. 27 2. Don’t give notice lightly .................................................................................... 28 3. How to properly deliver notice .......................................................................... 28 B. Cleaning Up and Clearing Out.................................................................................... 28 i C. D. E. F. G. H. I. J. The Potential for Damages.......................................................................................... 29 Return of the Deposit .................................................................................................. 29 If the landlord keeps the deposit ................................................................................. 30 Termination of Tenancy.............................................................................................. 30 1. Serving a notice to quit ...................................................................................... 30 2. Termination for late rent .................................................................................... 32 3. Termination for deliberate infliction of substantial damage to the premises..... 32 4. Termination for illegal activity on the premises ................................................ 32 5. Termination for failure to pay utility bills ......................................................... 32 6. Termination for breach of duties........................................................................ 33 7. Landlord’s termination of rental agreement by choice ...................................... 33 8. Termination for absence or abandonment .......................................................... 33 a. What qualifies as abandonment?............................................................... 34 b. Abandoned belongings.............................................................................. 34 Problems Involving Foreclosure ................................................................................. 35 1. Notice of Termination after a foreclosure.......................................................... 35 2. Subsidized housing ............................................................................................ 36 Retaliation by the Landlord......................................................................................... 36 1. Lockouts, utility shut-offs and threats ............................................................... 36 2. When it’s NOT retaliation.................................................................................. 37 When the Tenant Won’t Move .................................................................................... 38 1. How F.E.D. cases work...................................................................................... 38 Before You Come To Blows....................................................................................... 38 Conclusion .................................................................................................................. 39 APPENDIX Property Condition Checklist – Sample #1 Property Condition Checklist – Sample #2 ii INTRODUCTION Dealing with unhappy tenants means trouble for a landlord, and few tenants want the inconvenience and expense of moving simply because they cannot get along with their landlord. When a landlord and tenant get along well, things are better for everyone. Yet, landlords and tenants frequently have problems. Sometimes, landlords do not make repairs or unfairly keep security deposits. Sometimes, tenants damage property or neglect to pay the rent. From the beginning to the end of the landlord-tenant relationship, this handbook explains your broad responsibilities as a landlord or tenant under residential landlord-tenant law as generally found throughout the United States. Landlord-tenant law typically covers rental of a residence, such as an apartment or house. It does not necessarily apply to rooming houses, hotels or motels, temporary housing at a shelter or supportive housing program, any type of commercial property, mobile homes, or government subsidized housing. This is a general handbook, containing guidelines that are probably applicable in most of the United States in a similar form to that presented here. Many statements in this handbook are prefaced or qualified by words suc h as, “In most states…” This qualification is true for every statement made in this guide. The point is that the guidelines set out in this publication may not be identical to the one in your state. In fact, it is possible that the procedure, law, or rule in your state may differ markedly from what you read here. You should not rely on this handbook to make legal decisions, but rather to alert yourself to the fact that there may be an issue and to give you a starting place from which to discuss your problem with a local expert. THIS HANDBOOK IS NOT A LEGAL DOCUMENT, and is not intended as a substitute for seeking legal advice from an attorney or other qualified professional. We hope this handbook raises your awareness of common landlord-tenant issues and that you find it useful and informative. We begin with a short list of definitions for terms used throughout this handbook. We then proceed to the three major sections that cover the landlord-tenant relationship from beginning to end, including: The Re ntal Agreement, Living In A Rental Property, and finally, Ending the Tenancy. -1- DEFINITIONS Several important terms are used in this handbook and are defined here for your convenience. We will start with the two most troublesome and confusing terms. Do n’t worry, the going gets much easier after this: ? “Rental Agreement” vs. “Lease”: A “rental agreement” can mean any agreement, written or oral (spoken), between landlord and tenant. Sometimes, “rental agreement” means only an oral agreement, which is usually for a periodic tenancy (a tenancy with no set ending date, typically running from month to month until either the landlord or tenant chooses to end it.) A “lease” (or “lease agreement”), on the other hand, almost always means a written agreement between landlord and tenant. The “lease” is the written agreement itself, which normally specifies the ending date of the rental agreement, when the tenant must move out if the lease has not been extended, renewed, or transformed into a month-to-month tenancy by operation of the terms of the agreement contained in the lease. Some state laws specify that any rental agreement with a set ending date must be in writing, i.e. must be a “lease.” There is often a distinction drawn between “renting” and “leasing” a dwelling unit. “Renting” means first and foremost that the tenancy is periodic in nature. Secondly, the agreement is probably oral (but may be written). Contrastingly, whenever the term “leasing” is used, the tenant and landlord have a written agreement, which probably contains a set ending date. This all makes sense if you read and think about it carefully. Fortunately, it is not vital to your happiness (at least, not if you are a tenant- most landlords are advised to know the difference!) that you remember or even thoroughly comprehend the difference between the two terms. We have simply explained the difference so that when, in your continued reading, you ask yourself the question, “Why do they say ‘rental agreement’ here, and ‘lease’ there?” you will know there is a technical reason for the distinction. Happily, the rest of the definitions are not nearly as challenging. Let this knowledge sustain you as you continue your reading! ? Abandon/Abandonment: The tenant’s remedy of moving out of a rental unit that is uninhabitable and that the landlord has not repaired within a reasonable time after receiving notice of the defects from the tenant. ? Appeal: A request to a higher court to review a lower court’s decision in a lawsuit. ? Arbitration: Using a neutral third person to resolve a dispute instead of going to court. It is possible that arbitration may be a term of your lease. Unless the parties have agreed otherwise, the parties must follow the arbitrator’s decision. ? Arbitrator: A neutral third person, agreed to by the parties to a dispute, who hears and decides the dispute. An arbitrator is not a judge, but the parties must follow the arbitrator’s decision (the decision is said to be “binding” on the parties). Mediation (see the definition, -2- further down) is non-binding arbitration for the sake of trying to come to a reasonable agreement prior to going to court. In normal usage, arbitration is binding, while mediation is not. ? Assign/Assignment: An agreement between the original tenant and a new tenant by which the new tenant takes over the lease of a rental unit and becomes responsible to the landlord for everything that the original tenant was responsible for. The original tenant is still responsible to the landlord if the new tenant doesn’t live up to the lease obligations. (Compare to sublease.) Legal definitions of assignment and associated rules vary from state to state. ? Damages: Money claimed by, or ordered to be paid to, a person as compensation for loss or injury. It may mean the amount claimed by the landlord from the tenant’s security deposit based on the damages the landlord has incurred by reason of the tenant’s failure to comply with the obligations imposed under the lease and/or landlord-tenant law. Or it may mean the monetary compensation that a person wins in a lawsuit, such as the value of lost rent or the cost of repairing property damage to a landlord, or the value of housing or utility services not provided to a tenant. ? Default: A tenant’s failure to do something that the agreement or law requires the tenant to do, for example, the tenant’s failure to pay rent when due. A tenant who fails to pay all of the rent that is due is in default of this obligation. ? Default Judgment: A judgment issued by the court, without a hearing, after the tenant has failed to file a response to the landlord’s complaint. ? Discrimination in renting: Discrimination in renting includes but is not limited to the following practices: denying a person housing, telling a person that housing is not available when the housing is actually available at that time, providing housing under inferior terms, harassing a person in connection with housing accommodations, providing segregated housing because of a person’s race, color, religion, sex, sexual orientation, national origin, ancestry, source of income, age, disability, marital status, or whether there are children under the age of 18 in the person’s household. Discrimination also can be a refusal to make reasonable accommodation for a person with a disability. Some of the above- listed categories of discrimination may or may not be applicable in various states, and landlords that live on the premises of very small apartment buildings may be exempt from discrimination rules. Check your local laws or call your local housing authority or attorney general for more information. ? Dwelling Unit, Property or Premises: The place that is rented or leased. ? Escrow account: A bank account into which a tenant deposits withheld rent, to be withdrawn only when the landlord has corrected uninhabitable conditions in the rental unit or whe n the tenant is ordered by a court to pay withheld rent to the landlord. -3- ? Eviction: A court-administered proceeding for removing a tenant from a rental unit because the tenant has violated the rental or lease agreement or did not comply with a notice ending the tenancy (sometimes called an “unlawful detainer” or “ejectment” lawsuit- terminology varies from state to state). ? Eviction Notice: A notice that the landlord serves on the tenant when the tenant has violated the lease or rental agreement. The notice usually instructs the tenant to either leave the rental unit or comply with the lease or rental agreement (for example, by paying past-due rent) within a stated time period. The length of the required time period is often mandated by state law. ? Guest/Visitor: A person who does not have the rights of a tenant, due to his/her presence not being contemplated by the rental or lease agreement. A guest whose permission to be on the property is revoked becomes a trespasser if they refuse to leave. ? Habitable: A rental unit that is fit for human beings to live in. A rental unit that substantially complies with building and safety code standards that materially affect tenants’ health and safety is said to be “habitable.” See, uninhabitable and implied warranty of habitability. ? Holding Deposit: A deposit that a tenant gives to a landlord to hold a rental unit until the tenant pays the first month’s rent and the security deposit. ? Implied Warranty of Habitability: A legal rule that requires landlords to maintain their rental units in a condition fit for human beings to live in. In addition, a rental unit must substantially comply with building and housing code standards that materially affect tenants’ health and safety. ? Landlord: The property owner or his agent, which could include either a licensed property manager or a resident manager. The landlord rents the dwelling unit to another person, the tenant. ? Legal Aid Organizations: Organizations that provide free legal advice, representation, and other legal services in non-criminal cases to economically disadvantaged persons. ? Lockout: When a landlord locks a tenant out of the rental unit with the intent of terminating the tenancy. Lockouts, and other “self- help” eviction remedies, are illegal in most states. ? Mediation: A process in which a neutral third person meets with the parties to a dispute in order to assist them in formulating a voluntary solution to the dispute. Mediation is nonbinding. The goal of mediation is to reach a fair decision upon which both parties can agree. However, no party is obligated to reach agreement. ? Negligence: In layman’s terms, a person’s carelessness (that is, failure to use ordinary or reasonable care) that results in injury to another person or damage to another person’s -4- property. Negligence is a legal term with legal implications that may vary to some extent from state to state. ? Novation: Again, in layman’s terms, in an assignment situation, a novation is an agreement by the landlord, the original tenant, and the new tenant that makes the new tenant, rather than the original tenant, solely responsible to the landlord. Novation is a legal term with legal implications that may vary to some extent from state to state. ? Periodic Rental Agreement: An oral or written rental agreement (a written version will often be called a periodic lease) that states the length of time between rent payments -- for example, a week or a month -- but not the total number of weeks or months that the agreement will be in effect. ? Property Manager: An individual who works on behalf of the property owner to rent, manage and safeguard a property. ? Rent: Whether you’re renting or leasing, you have to pay the rent. “The rent” is the money the tenant pays the landlord on a monthly, weekly, or other periodic basis. In return, the landlord allows the tenant the use and possession of the dwelling unit and property, according to the terms of the rental agreement. ? Rent Control Ordinances: Laws in some communities that limit or prohibit rent increases or limit the circumstances in which a tenant can be evicted. Where these ordinances exist, they vary widely in content. ? Rent Withholding: The tenant’s remedy of not paying some or all of the rent if the landlord does not correct defects that make the rental unit uninhabitable within a reasonable time after the landlord receives notice of the defects from the tenant. Often available under state law. Conditions vary. ? Rental Application Form: A form that a landlord may ask a tenant to fill out prior to renting that requests information about the tenant, such as the tenant’s address, telephone number, employment history, credit references, and the like. ? Rental Period: The “rental period” is the length of time between required rental payments. If you must pay rent every month, the “rental period” is one month. If you must pay rent every week, the “rental period” is one week. ? Renters Insurance: Insurance protecting the tenant against property losses, such as losses from theft or fire. This insurance may also protect the tenant against liability for claims or lawsuits filed by the landlord or by others alleging that the tenant negligently injured another person or property. The terms of Renters Insurance policies vary so be sure to learn the details. Policies protecting against liability will be more expensive than those that only protect a tenant’s property. -5- ? “Repair and Deduct” Remedy: Generally, the tenant’s remedy of deducting from future rent the amount necessary to repair defects covered by the implied warranty of habitability. Not available in all states, or under all circumstances. ? Resident Manager: An individual who resides on the property and manages it on behalf of the property owner or the licensed property manager. ? Retaliatory Eviction or Action: An act by a landlord, such as raising a tenant’s rent, seeking to evict a tenant, or otherwise punishing a tenant because the tenant has asserted certain rights/remedies or contacted authorities to report violations of law by the landlord. ? Security Deposit: Payment to a landlord or property manager by a tenant to ensure that the tenant will pay the rent due and will maintain the property and will not damage it. Security deposits are held in trust by the owner or manager until the tenant moves out and are then returned or applied to pay for damages and/or delinquent rent with an accounting to the tenant. ? Sublease: A separate rental agreement between the original tenant and a new tenant to whom the original tenant rents all or part of the rental unit. The new tenant is called a “subtenant.” The agreement between the original tenant and the landlord remains in force, and the original tenant continues to be responsible for paying the rent to the landlord and for other tenant obligations. (Compare to assignment.) Leases will often contain provisions disallowing subleases except under certain situations. State law regarding subleases varies from state to state. ? Subpoena: An order from the court that requires the recipient to appear as a witness or provide evidence in a court proceeding. ? Subtenant: See sublease. ? Tenancy: The tenant’s exclusive right, created by a rental agreement between the landlord and the tenant, to use and possess the landlord’s rental unit. ? Tenant: Any of the people who rent the dwelling. The tenant obtains the right to the exclusive use and possession of the rental unit during the lease or rental period. ? Uninhabitable: A rental unit which has such serious problems or defects that the tenant’s health or safety is affected. A rental unit may be uninhabitable if it is not fit for human beings to live in, or if it fails to substantially comply with building and safety code standards that materially affect tenants’ health and safety. (Compare to habitable.) ? Unlawful Detainer Lawsuit / Forcible Entry and Detainer Lawsuit: A lawsuit that a landlord must file and win before he or she can evict a tenant (known more simply as an “eviction” lawsuit). The specific terminology varies from state to state. -6- ? U.S. Department of Housing and Urban Development: The federal agency that enforces the federal fair housing law, which prohibits discrimination based on sex, race, religion, national or ethnic origin, familial status, or mental handicap. ? Waive: To sign a written document (a “waiver”) giving up a right, claim, privilege, etc. In order for a waiver to be effective, the person giving the waiver must do so knowingly, and must know the right, claim, privilege, etc., that he or she is giving up. “Waive” is a legal term with legal implications defined by state law. ? Writ of possession (or similar document): A document issued by the court after the landlord wins an unlawful detainer or eviction lawsuit. The writ of possession is served on the tenant by the sheriff or other law enforcement personnel. The writ informs the tenant that the tenant must leave the rental unit by the end of a given time period, or the sheriff will forcibly remove the tenant. Terminology and participating law enforcement officials vary from state to state. -7- I. THE RENTAL OR LEASE AGREEMENT A. Before the Agreement: There are several steps that both landlords and tenants can take prior to the lease or rental agreement. These steps can be an important part of ensuring that the landlord-tenant relationship will be free from problems. 1. For the tenant: Depending on how much time a potential tenant has available to look into potential new dwellings, many problems can be avoided if one investigates a few matters before agreeing to rent, putting down a deposit, or signing a lease. Look over the outside of the building. Are the stairs, outside walls, roof, sidewalks, and grounds around it in good shape? Do the buildings need to be painted? Do the apartments have enough parking spaces? If there is a laundry room for all of the residents, look it over. Inspect the swimming pool. These and similar observations are the most important things to do to avoid hassles with a rental house or apartment and to start off on the right foot. Find out what the neighbors are like and what they say about the landlord. Ask whether they ever had something that needed to be repaired by the landlord. Was it fixed quickly? Have they ever had any disputes with the landlord? Do they have roaches? Has anyone in the area had any problem with vandalism, burglaries, rape, muggings, or other crimes? What is the area like at night? Are the grounds well lit? Never sign a lease or even put a deposit down on an apartment or house until seeing the exact place you will be renting. Some apartment complexes will show a model apartment. Often, the apartment a tenant actually gets will not be as nice as the model. When inspecting the potential rental property, look it over carefully. Make sure the place does not smell bad. This could signal mildew caused by roof or plumbing leaks. Make sure the stove works. Check the refrigerator. Turn on the dishwasher. Check the garbage disposal. Turn on the water faucets and make sure the hot water works. Flush the toilet. Test the heating and air conditioning units. Open all of the cabinets and drawers in the kitchen and bathroom. Look for signs of insects or rodents. Look carefully at the carpet. Check around the windows. Are there any signs of leaks or water damage? Does the house or apartment have working smoke detectors? Test all of the lights. Carry a pen and paper. Make a list of anything that is damaged or that needs repair. Take a copy of this list to the landlord and ask to have all the items repaired. Be sure to keep a copy of this list. If the landlord promises to fix the items, get the promise in writing (or better yet, refuse to sign the lease or give a deposit until the items are satisfactorily repaired). Finally, it is wise to check out the landlord before agreeing to rent or put down a deposit. If the city has a tenant association, better business bureau, or consumer protection agency, call and find out if other people have complained -8- about the landlord, complex, or management company. Ask if the landlord owns any other rental properties. If so, che ck into those too. 2. For the landlord: Assuming the landlord maintains a sound, problem- free rental property, the most important thing a landlord can do prior to renting is to avoid renting to a “problem tenant.” A problem tenant is a tenant who damages property, doesn’t pay rent on time (or at all), causes disturbances, conducts criminal activity on the premises, etc. The best way to avoid unwittingly renting to a problem tenant is to check the tenant’s background as thoroughly as possible before agreeing to rent. While a landlord may not illegally discriminate against tenants (see Section H, below), a landlord may base a decision to refuse to rent to a potential tenant based on the tenant’s history of being a problem tenant. It is common for landlords to ask potential tenants to fill out rental applications, listing previous places where the applicant has rented. The landlord can then phone these previous landlords to ask about the tenant and the circumstances under which the tenant left. This can be important information when trying to determine what type of tenant the applicant will be. Information on the applicant’s finances and employment situation can also be gathered by use of a rental application. A landlord might think better of renting to a tenant who is on such shaky financial ground that the tenant’s ability to pay rent in a timely manner is questionable. A consent form for the applicant to sign is a usual part of any rental application. The consent agreement represents the applicant’s permission for the landlord to conduct credit and background checks, if desired. Some sources will only give the landlord information on the applicant if they are provided with a copy of the consent agreement. U.S. Legal Forms offers a comprehensive and affordable “Application for Residential Lease” form for preview and purchase on our website, www.uslegalforms.com. After opening our site in your web browser, use the “Quick Search” feature to locate the form. Enter the search term “Residential Lease” or “Lease Agreement” and change the pull-down menu on the right from Titles to Category, then press the Search button. The search engine will retrieve a variety of lease forms from various states. You will be able to browse the forms and select the form(s) that suits your needs. If you have any trouble navigating our website, our staff will be happy to help locate the form you need if you call (toll free) 1-877-389-0141. B. Importance of a Written Agreement: Before a tenant moves in, the landlord and tenant must come to an agreement. It may be verbal or written, but written is best. Without written proof, even two honest people can -9- later disagree on what was actually said. The written agreement is usually called a “Rental Agreement,” a “Tenant Agreement,” or “Lease.” 1. The agreement should include at least the following: ? The name and address of the person authorized to manage the premises, the name and address of an owner of the premises, or a person authorized to act as an agent of the owner, for the purpose of service of process and receiving notices and demands from the tenant or the owner’s agent ? The name and address of the tenant(s). ? How many tenants and pets are to occupy the unit. ? Who holds the deposit and reasons the deposit or a portion of it may be retained by the landlord. ? The amount to be paid for rent and deposits. ? When, where, and how the rent is to be paid. ? When the rent is considered delinquent and what the penalty will be for late payment. ? Whether this is a month-to- month tenancy or a lease with a definite contract period. ? Who pays for utilities and what services are provided. ? A list of prohibited equipment and/or items. ? A list of landlord and tenant repair and maintenance duties and who pays for them. ? Rules or prohibitions regarding subleasing the property or assignment of the lease. ? A premises condition statement and contents inventory. ? Disclosure of lead-based paint as applicable for units built prior to 1978 (as required by the federal Environmental Protection Act). ? Any renewal or termination options. ? Any additional rules, covenants and regulations in place. 2. Late charges: - 10 - The lease agreement should always specify what late charges may be assessed for past-due rent. State law sometimes governs what late fee may be assessed, and any amount in the lease agreement greater than that allowed by law will not be enforceable in court. If state law does not address the amount of late fees, the amount charged must still be reasonable. A court is unlikely to enforce an amount that seems unreasonable. 3. Resolving disputes: A landlord and tenant might agree to mediation or binding arbitration to resolve disputes between them (as an alternative to going to court). If both parties want to mediate or arbitrate disputes, they should include in the rental agreement (or in an addendum to it) specific details of the types of disputes to be resolved in this way and the procedures to be followed. 4. Unde rstanding the rental agreement: Rental agreements are normally prepared by the landlord or by the landlord’s agent. It is very important that tenants make sure they understand all the terms of the agreement. Tenants should ask for an explanation of any section they do not understand, before signing the agreement. a. What to watch out for: If rental agreements include provisions that are contrary to law, those provisions will not be enforceable in court. Possible examples of such provisions typically might: ? Require the tenant or the landlord to waive any legal rights under state law. ? Permit the landlord to get an “automatic” court judgment against the tenant (a “confession of judgment”). ? Require the tenant to agree to pay the landlord’s attorney fees, no matter what the circumstances. ? Limit the liability of landlords or tenants when either has failed to meet their responsibilities. ? Make the tenant liable for rent even if the landlord fails to maintain the premises as required by law . ? Allow the landlord to take the tenant’s personal belongings. ? Allow the landlord come into the dwelling whenever he or she wants. - 11 - ? Release of the landlord from liability for accidents due to his or her neglect. ? Remove the tenant’s right to the return of the deposit. ? Grant of a power of attorney to the landlord by the tenant. The above examples are a general guide, though they may not all hold true in every state or in every situation. State law often addresses what provisions are and are not allowable in a rental agreement. To remove illegal wording, draw a line in ink through any such provision. You should of course discuss your objection with the landlord or landlord’s agent prior to marking up the lease, in order to reach agreement and avoid confrontation. Both the landlord and tenant should initial the agreement next to each item that has been removed. Illegal provisions in an agreement are not enforceable against the tenant, even if both parties sign. b. Utilities: The rental agreement should state who is responsible for paying which utility bills. In some cases, the landlord pays for heat, electricity and water. Sometimes the tenant is responsible for these bills. If this issue is not addressed in the agreement, the tenant and landlord should work out their own understanding. It is good to put this agreement in writing and have it signed by both parties. In some states, landlords are permitted to rent residential buildings with a single utility meter, if they comply with all the conditions in the law. The landlord must normally provide prospective tenants with a notice of the total utility cost for the building by month for the most recent calendar year. The landlord must have a fair and equitable method for dividing the utility bill and billing the tenants. The method for apportioning the bill and billing tenants should be put in writing in the lease. 5. Unsigned or undelivered agreements: Once the agreement has been carefully reviewed, both parties should sign it. The landlord must give the tenant a copy. If the landlord and the tenant agree to a rental agreement, and the landlord signs and delivers the agreement to the tenant but the tenant doesn’t sign it, the legal provisions of the agreement are nonetheless binding if the tenant moves in and begins paying rent. Likewise, if the tenant signs and delivers the agreement to the landlord but the landlord doesn’t sign it, the rental agreement is binding if the landlord accepts payment of rent without reservation from the tenant. C. What is a Lease? - 12 - A lease is a rental agreement that specifies how long the tenant will stay in the property. If landlord and tenant agree to a lease, the landlord cannot raise the rent or evict the tenant during the period of the lease, unless the tenant breaks the terms of the lease or the lease agreement provides for the increases. If the tenant decides to move during the term of the lease, the tenant is usually still responsible for the rent for the rest of the lease period (unless the lease provides otherwise or allows subleasing). There may be times, however, when the tenant may quit the lease and not be responsible for the rent for the remainder of the lease. See section II. “Living in a Rental Property,” below. U.S. Legal Forms offers a comprehensive, affordable, and state specific “Residential Lease (Rental) Agreement” form for preview and purchase on our website, www.uslegalforms.com. We have crafted a Residential Lease for each state that takes into account each state’s differing landlord-tenant laws. After opening our site in your web browser, use the “Quick Search” feature to locate the form. When entering the search term, type in “Residential Lease” or “Lease Agreement”. Next, select the state you wish search from the pull-down menu. Change the pull-down menu on the right from Titles to Category, then press the Search button. The search engine will display a variety of lease agreement forms for the state you selected. If you have any trouble navigating our website, our staff will be happy to help locate the form you need if you call (toll free) 1-877-389-0141. D. What is a Security Deposit? Many landlords demand a security deposit before a tenant moves in. This deposit protects the landlord from financial loss if the tenant fails to pay the rent, causes damage to the property, or does not clean up properly when he leaves. State law often places a cap on the maximum amount of security deposit allowed and how and when a security deposit must be returned. See section III. D., “Return of the Deposit,” below. Sometimes a landlord asks for a nonrefundable application fee to place a prospective tenant on a waiting list for an apartment. If an application fee covers the landlord’s actual, reasonable costs for services performed, such as checking the applicant’s credit history, it is probably lawful. However, it is not lawful to charge a fee that becomes the security deposit if the tenant moves in but is forfeited if the tenant decides not to take the unit. At most, such a tenant would be responsible for rent during the time it takes the landlord to find a replacement tenant and for the actual costs of finding one, such as newspaper ads. Where are deposits kept? Though state law varies, deposits and prepaid rent often must be deposited by the landlord or the property manager in a trust account, a bank or savings and loan association, or with a licensed escrow agent. A trust account can be any separate savings or checking account labeled “trust account” and used only for deposits and prepaid rents. A receipt should be written whenever the tenant pays a deposit or prepays rent. Landlords are usually required to provide tenants with the terms and conditions under - 13 - which prepaid rents or deposits might be withheld by the landlord. In some states, the landlord is required to pay the tenant interest for holding the security deposit. E. Get a Written Inspection Report An inspection report describes the condition of the property when the tenant moves in. It generally has two parts: (1) A “premises condition statement” describing the condition of the unit, and (2) A “contents inventory” itemizing any furnishings and describing their condition. The inspection report is not ordinarily required by law, but if a landlord or tenant requests it, one should be prepared. Many landlords and tenants find that an inspection report helps to protect their interests. Tenants, for example, can use it to prove that they were not responsible for damages that existed before they moved in. Landlords can also use it to establish when damage occurred. To complete the inspection report, the landlord and the tenant should go through the premises together, writing down any damages, such as scratches or burns. Both should sign and date the report and attach a copy to the rental agreement. The landlord can require that the tenant sign the report as a condition of renting the property. Before requiring the tenant’s signature on an inspection report, however, the landlord should advise the tenant that the signed report can later be used by the landlord to determine whether or not to refund any deposits and to compute the recovery of other damages to which the parties may be entitled. The landlord and tenant should then make another list showing which damages the landlord has agreed to repair or change and the date that the work should be completed. A common time limit is ten days. The list should be signed and dated by the landlord before the tenant moves in, then signed and dated by the tenant when the work has been completed. Again, everyone should keep a copy. If a landlord refuses to make an inspection report, it is a good time to consider looking for another landlord. Finding another place to live before a conflict arises is much easier than trying to settle disagreements over money and damages when the tenancy ends. F. Living by the Landlord’s Rules: Nearly every landlord has rules that tenants must live by. The law often requires that the landlord show the tenant the rules and regulations before the tenant enters into the rental agreement and that a copy of the rules be prominently posted on the premises where it can be seen by everyone living there. House rules or apartment regulations may be printed on the lease form or displayed. Before you sign the lease, ask for a copy of any rules. If the rules have not been written down, ask the landlord to write them down and to sign and date the document. Having written rules will make it much less likely that the landlord will change the rules in the middle of your lease. These rules should include homeowner association or community association rules or covenants. Tenants should - 14 - read the rules carefully, and if they believe that they cannot live by the landlord’s rules, they should not rent the unit. The rules must be reasonable, must apply to all tenants equally, and must be clearly defined. The landlord cannot make rules that allow him to avoid his obligations. Once the tenant has seen the rules and moved in, the tenant has agreed to abide by those rules. Failure to do so could lead to eviction. If the tenant has a lease, the rules may not be changed during the term of the lease, if the changes would substantially modify the lease agreement. For example, the landlord cannot decide during the term of a lease that he will no longer allow pets on the premises. If the tenancy is month-to- month, the landlord may make such changes, but usually only after giving the tenant written notice at least 30 days before the rental due date when the rule changes will take effect. Tenants who do not wish to accept the rule changes may give a written notice before the rental due date and move out. The exact time periods required in these notices vary from state to state. G. If Circumstances Change Once the tenant and the landlord make a rental agreement, the tenant may not have the right to get back the full deposit or prepaid rent if he or she decides not to move in. If the tenant refuses to move in because the landlord misrepresented the condition of the unit, the tenant may owe nothing, and may be entitled to a full refund of the deposit and prepaid rent. If the premises are not ready on the first day of the rental term per the rental agreement or the landlord refuses to allow the tenants to move in, the tenants may cancel the agreement, or they may ask a court to order the landlord to live up to the agreement. H. When is Discrimination Illegal? It is illegal under both state and federal law for landlords to refuse to rent to someone because of sex, race, religion, national origin, color, physical or mental disability, or pregnancy. A landlord may not even make an inquiry regarding the tenant’s status in any of these areas. It is also illegal under the law of most states to refuse to rent to someone because of marital status or change in marital status. It is a violation of federal law to refuse to rent on the basis of a disabling disease which is not readily communicable, such as cancer or AIDS, or because a tenant has child ren. Federal fair housing laws may not apply to single-family homes or two-, three- or four- family structures where the owner occupies one unit. Most state’s laws, however, typically apply to all residential rental units. Each landlord may choose whether he or she wishes to rent to smokers. Neither state nor federal law makes smokers a protected class. It is unlikely that a landlord will openly refuse to rent to someone for an illegal reason. Frequently, a tenant may suspect there is an illegal reason behind some seemingly legal landlord practices. The following are some indications that a landlord may be practicing discrimination: ? The apartment the tenant called about is suddenly “already taken” when the landlord sees the tenant. - 15 - ? A unit the landlord said was rented remains vacant. ? The rent or deposit quoted is much higher than advertised or charged for similar units. ? Rules are different for one tenant than for others in the same apartment building. ? A real estate broker or agent does not refer a tenant to a rental listing that fits his needs. ? An advertisement indicates a preference for a certain race, color, religion, sex, age, or national origin. - 16 - II. LIVING IN A RENTAL PROPERTY A. The Landlord’s Responsibilities: State law typically requires that the landlord or his agent must: ? Give the tenant a copy of any written rental agreement. ? Abide by the lawful terms of the agreement. ? Keep the tenant informed of any change in the landlord’s or his agent’s address. ? Make sure the premises are ready for the tenant when the rental agreement takes effect. ? Ensure that the tenant’s enjoyment of the premises is not disturbed. ? Maintain a fit premises (see next section titled “Property Maintenance”). ? Give adequate notice of a rent increase. ? Give the required notice before demanding that a tenant move out. ? Return the tenant’s security deposit and/or prepaid rent when the tenant moves out and/or give a complete written accounting of money held for accrued rent, damages and the cost of repair within the time limit required by law. Typical duties of the landlord under the law of many states include: ? Make all repairs and do whatever is necessary to put and keep the premises in a fit and habitable condition. ? Keep all common areas of the premises in a clean and safe condition. ? Maintain in good and safe working order and condition all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, kitchen, and other facilities and appliances, including elevators, supplied or required to be supplied by the landlord. ? Provide and maintain appropriate receptacles and conveniences for the removal of garbage, rubbish, and other waste incidental to the occupancy of the dwelling unit and arrange for their removal. ? Supply running water and reasonable amounts of hot water and heat at all times. ? Provide and maintain locks and furnish keys reasonably adequate to ensure safety to the tenant’s person and property. - 17 - ? Provide smoke detection devices. Examples of typical property maintenance duties which may fall under a state’s statutory provisions include the landlord’s duty to maintain: ? Doors, windows, roof, floors, walls and ceilings, ensuring that they do not leak or have holes. ? Plumbing that works, does not leak, and provides hot and cold water at reasonable water pressure. ? A working, safe stove and oven. ? A reliable heating system which provides adequate heat to all rooms. ? A safe electrical wiring system (with no loose or exposed wires, sockets that do not spark and adequate circuit breakers). ? Windows or fans that provide fresh air. ? Enough garbage cans or dumpsters to provide an adequate and safe trash removal service. ? Extermination service if roaches, rats, mice or other pests infest the building, apartment or property. ? Proper maintenance of any vacuum cleaners, washing machines, dishwashers, etc., supplied by the landlord (when not abused or broken by the tenant). ? Properly working smoke detectors (tenant is normally responsible for upkeep of the batteries). B. Tenant Remedies: If the landlord does not meet his or her responsibilities, then state law typically provides remedies for the tenant. The remedies available usually depend on the type of noncompliance by the landlord. 1. Remedies for landlord’s noncompliance in general ? The tenant may move out. If there is material noncompliance by the landlord with the rental agreement or a noncompliance with state law which materially affect health and safety, state law may allow the tenant to move. The tenant must normally first give the landlord written notice describing the problem and stating that if the problem is not fixed in a number of days from receipt of the notice, the tenant will move out. - 18 - If the problem is remedied within the deadline, the tenancy does not terminate. If the tenant still wants to move, a normal notice must be given. If the tenant notifies the landlord in writing of a problem and the landlord remedies it within the time allowed, but allows substantially the same problem to occur again within the near future (state laws vary), the tenant may sometimes terminate the agreement with a written notice without allowing the landlord an opportunity to fix the problem. The notice must specify the problem and the date of termination of the tenancy. If the rental agreement is terminated, the landlord must usually return all prepaid rent or security deposits recoverable by the tenant. Tenants may not terminate a rental agreement for problems they themselves have caused. ? The tenant may obtain damages or injunctive relief. State law may allow a tenant to sue in court for damages or obtain injunctive relief for any noncompliance by the landlord with the rental agreement or for certain violations of the lease and/or state law. If planning to sue, the tenant should see an attorney. 2. Remedies for landlord’s failure to supply essential services If the landlord deliberately or negligently fails to supply an essential service such as heat, water, sewer, electricity or plumbing, state law may allow the tenant to employ additional alternative remedies. Prior to utilizing one of these remedies, a tenant must give the landlord a written notice stating the problem and the remedy the tenant plans to take. Remedies representative of the law in many states include the following. You should consult a local attorney prior to taking any measure hostile to the landlord. ? The tenant may make repairs and deduct the cost from rent. Once written notice is given to the landlord stating that the tenant plans to do so, the tenant may get the problem fixed and deduct the actual and reasonable expenses from the next month’s rent. The tenant should retain receipts for all costs and submit them to the landlord for rent credit. ? The tenant may procure reasonable substitute housing. The tenant can give the landlord written notice that he or she is moving into reasonable substitute housing. The tenant is then excused from paying rent until the problem is cured. If the tenant has to pay more than his or her regular rent to secure housing during this time, the tenant can charge the landlord for the difference. ? The tenant may obtain damages. In some cases, when the problem is really serious, it may reduce the value of the dwelling. If this happens, the tenant may sue, or in an action by the landlord for possession or rent, the tenant may counterclaim to recover damages against the landlord based on the diminution in the fair rental value of the dwelling. - 19 - 3. Housing codes The primary purpose of housing codes is to protect the health and safety of the people who live in houses and apartments. A minimum standard of maintenance is set, making the landlord (not the tenant) responsible for keeping rental property in decent shape. State law usually (call a lawyer if in doubt) protects tenants who exercise their rights to report code violations. If they call to complain and ask for an inspection, the landlord cannot take revenge by harassing them (i.e. threatening eviction). Many communities have local housing codes. C. Tenant Responsibilities State law typically requires that tenants: ? Shall keep that part of the premises occupied and used by the tenant as clean and safe as the condition of the premises permits. ? Shall dispose of all ashes, rubbish, garbage, and other waste from the dwelling unit in a clean and safe manner. ? Shall keep all plumbing fixtures in the dwelling unit or used by the tenant as clean as their condition permits. ? Shall use in a reasonable manner all electrical, plumbing, sanitary, heating, ventilating, air conditioning, kitchen, and other facilities and appliances including elevators in the premises. ? May not deliberately or negligently destroy, deface, damage, impair, or remove a part of the premises or knowingly permit any person to do so. ? May not unreasonably disturb, or permit others on the premises with the tenant’s consent to unreasonably disturb, a neighbor’s peaceful enjoyment of the premises. ? Shall maintain smoke detection devices as required. ? May not, except in an emergency when the landlord cannot be contacted after reasonable effort to do so, change the locks on doors of the premises without first securing the written agreement of the landlord and immediately after changing the locks, providing the landlord a set of keys to all doors for which locks have been changed. In an emergency the tenant may change the ol cks and shall, within five days, provide the landlord a set of keys to all doors for which locks have been changed and written notice of the change. To comply with the Landlord and Tenant Act and the rental agreement a tenant should do the following: - 20 - ? Abide by the lawful terms of the rental agreement and the reasonable rules established by the landlord. ? Be considerate of other tenants. ? Keep the premises clean and safe. ? Remove snow and ice from leased premises (this does not include the common areas). ? Dispose of garbage and other waste in a clean and safe manner. ? Prevent damage to the premises. ? Replace or repair anything destroyed or damaged by accident or carelessness on the part of the tenant or the tenant’s guests. ? Make sure the unit’s smoke detectors are working by testing them periodically and changing the batteries as needed. ? Give adequate notice before moving. ? Move out when the rental agreement ends (if agreement is not extended or renewed). ? Clear the premises of possessions when moving out. ? Pay the rent on time. The tenant must pay the rent each month as it becomes due. The landlord is not required to ask the tenant each month for the rent. The place for payment should be agreed on in the lease. If the tenant rents monthly, the rent is due every month on the day of the month that the tenancy began, unless otherwise agreed. Thus, if the tenant moves in on the 8th, the rent is due on or before the 8th of every month, unless both parties agree to another rental due date, which is typically the 1st of the month. D. Landlord Remedies: If tenants do not meet their responsibilities, the landlord can terminate the rental agreement by written notice and require that the tenants move. The written notice must be specific about the problem in question. (See: Eviction.) If the tenants are notified of a problem and remedy the problem within the time allowed, but the problem occurs again within the near future (state law varies), the landlord may terminate the rental agreeme nt using “short” notice (for example, three- or five-day written notice, depending on the type of problem and applicable state law). If this occurs - 21 - the landlord normally does not need to give the tenant an opportunity to fix the problem. The notice must specify the problem and the date of termination. A lawsuit to evict a tenant is usually called a “Forcible Entry and Detainer Action”, or “FED”. A landlord who evicts a tenant should probably contact an attorney for advice or representation. E. If the Landlord Needs To Get In A landlord usually needs the tenant’s permission to enter the premises, but in many states, he or she can enter without permission if: ? It is not possible to contact the tenant by ordinary means. ? The tenant has been gone from the property more than seven days without notice. ? There is an emergency (such as smoke, water, or explosion). A landlord may enter the premises only to: ? Make repairs or perform maintenance. ? Supply necessary or agreed services. ? Inspect for damages. ? Show the premises to prospective buyers, renters, or contractors. ? Remove personal property belonging to the landlord that is not covered under the rental agreement. In these situations, the landlord (in most states) must give the tenant 24 hours notice. He must say what time he is coming and try to pick a time that is mutually convenient. The landlord may enter for these reasons only with the tenant’s consent and only at reasonable times. Tenants CANNOT unreasonably refuse to allow the landlord to enter. If the tenant does so, the landlord can get a court order, or injunction, requiring that the tenant let him in. In many states the landlord may also sue for actual damages or one month’s rent, whichever is greater, or terminate the tenancy. The landlord CANNOT abuse the right to request entry, or use it to harass tenants. When a landlord abuses his or her right to enter by coming in without the tenant’s permission, or entering repeatedly without need, the tenant can ask a court for an injunction ordering the landlord to stop. In most states, the tenant may also sue for actual damages or one month’s rent, whichever is greater, plus court costs and attorney fees. If the tenant wishes to move because the landlord has abused the access privilege, a written notice from tenant to landlord is required. - 22 - F. Alterations A landlord should make clear to the tenant either in the written lease agreement (if there is one) or by oral understanding, that alterations are not allowed without permission. Anything more than hanging a picture on the wall normally falls into the category of “alterations.” Typical alterations include installation of various permanent fixtures such as shower or bath installations, sinks, ceiling fans, new flooring, new paint, new wiring, built- in shelving or cabinets, etc. The legal problem associated with such alterations is that they are all essentially “fixtures.” “Fixture” is a le gal term. Its definition varies from state to state, but can generally be described as a piece of personal property permanently affixed to a building in such a way that damage would result if the fixture were removed. A fixture becomes part of the “real property” (the building) to which it is attached, and therefore the property of the landlord! Even if the lease or oral agreement does not cover the subject of alterations, a tenant shouldn’t install fixtures or make other alterations without first discussing it with the landlord, because the tenant might unwittingly be “giving away” free equipment to the landlord. It is possible that an agreement can be worked out between tenant and landlord, perhaps for proportionally lowering of the rent for a month in which the tenant makes improvements to the property. On the other hand, the landlord may not want any alterations to the property. Ask before you act! G. Locks Tenants can insist that the landlord maintain or replace the locks if the residence is not secure. Tenants may want to add an extra lock on their own to increase security. With the landlord’s permission, a tenant may add locks that can be used from the inside, such as chain bolts. If the tenant makes holes in the door or frame, he or she must leave the lock in place when moving out. Neither a landlord nor a tenant may be locked out. If a landlord adds or changes locks, new keys must be given to the tenant right away. Before changing locks, the tenant must generally get the landlord’s written permission. However, in an emergency, when the landlord can’t be contacted first, the tenant can change locks, provided he or she gives a new set of keys to the landlord as soon as possible. H. Occupants and Visitors The landlord can limit the number of occupants who live in the house or apartment. This should be clear from the rental agreement. The maximum number should depend on the number of bedrooms and the age of the occupants. State law generally limits occupancy to two or three adults (persons over 18) for each bedroom of the dwelling. The landlord can set different standards, as long as he does not illegally discriminate. For example, if a couple living in a one-bedroom apartment has a baby in the middle of their lease, the - 23 - landlord probably cannot require the couple to move to a two-bedroom apartment because this may unfairly penalize them merely because they had a child. A landlord generally cannot limit visitors as long as they do not disturb other residents or violate some other provisio n of the lease. However, a tenant should be careful not to have the same visitor spend the night too many times in a row without the landlord's permission, or the landlord may consider the visitor an unauthorized occupant. Certainly, a visitor should not get mail or other deliveries at the premises, as this will surely arouse suspicion. Too many visitors might be incorrectly perceived as illegal drug activity. Although the landlord has the burden to prove a tenant has violated the lease in an eviction case, tenants are wise to avoid these disputes from arising in the first place. Therefore, tenants should consider explaining the situation to the landlord to remove suspicion rather than becoming offended by a landlord's questions and not cooperating. I. Can the Landlord Raise the Rent? Unless there is a lease, the landlord is legally entitled to raise the rent by any amount. In most states, the landlord must give the tenant at least 30 days notice before the increase takes effect on a month-to- month tenancy. Tenants then have two choices: they can agree to pay the rent, or they can move out. Legally, a notice of rent increase is probably equivalent to a termination of the rental agreement at the old rate and an offer to rent the same unit at a higher rate. A landlord should, therefore, notify tenants of any rate increase at least 30 days before the increase goes into effect, and tenants who wish to leave rather than accept the increase should give the landlord a written 30-day notice of intent to terminate tenancy. Tenants who receive a housing subsidy or live in a federal or state housing project may have rights in addition to those provided by state law. For example, the U.S. Department of Housing and Urban Development (HUD) may control rent increases in housing where HUD has provided loan or rent guarantees to the owner. If you have questions about HUD rent controls, con

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