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Also See: Landlord FAQs 1 Tenant FAQs
How do rental agreements & leases differ?
Should rental agreements be in writing?
Can a written agreement be changed?
What happens when the lease expires?
What are owner's rights?
What are tenant's rights?
How do rental agreements & leases differ? Most common rental agreements are " month-to-month." A lease is usually for a specific period of time exceeding one month - generally one year for residential and multi year for commercial property. The benefit of a lease to a tenant is that the property owner cannot raise the rent, terminate a tenancy, or otherwise change the terms of the lease- unless the lease says otherwise or the tenant violates the terms in a material way. The benefit to a property owner is stability and a predictable income stream.
A month-to-month rental agreement is for one just month, but automatically and continually renewing until either party to the agreement elects to change or terminate it. If the rent is paid monthly, then most states require 30 days written notice to raise rent or terminate the agreement by either party. However, some states allow the parties to agree in writing to a shorter notice, if they desire. Most states allow for a shorter notice to terminate a tenancy, often from three to seven-days, in the event of non-payment of rent, substantial lease violations or illegal use of the premises.
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Should rental agreements be in writing? Both leases and month-to-month agreements may be oral or written. However, any agreement that encumbers real estate for more than one year generally must be in writing to be binding. See Statute of Frauds.
Oral agreement. With an oral agreement the parties talk things over, reach an understanding - but nothing is written down. Some landlords prefer oral agreements because they believe that landlord tenant laws require that leases favor tenants. Some tenants prefer oral agreements because they fear signing anything that may bind them to something they don't fully understand.
Written agreements usually contain "the entire agreement" and often specifically state that any oral modification is prohibited. Although, a lease or month-to-month agreement may mention another document such as: House Rules or a Pets Policy. Because most written agreements contain a clause that says everything must be in writing, the landlord is protected from unwarranted tenant claims that are often made at eviction, like: the rent wasn't paid because the landlord didn't make requested repairs. The landlord's best defense is a lack of the written tenant documentation required by the lease.
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Can a written agreement be changed? You can make changes to any agreement - before you sign it - as long as all parties to the agreement agree. Just cross out whatever you agree to take out and write in any additions.
Some written agreements have rules that cannot be enforced. Many rental agreements are printed forms available at office supply or stationery stores. These forms are often out-of-date because the law has changed. For instance, a form agreement may say that a landlord can raise the rent with as little as seven days notice. Your state law may require a 30 day notice, so the agreement should be changed. If a tenant wants to smoke or keep a pet and the lease says they cannot, that part of the agreement could be changed. All parties should initial all changes. Any illegal or outdated rules in an agreement are normally not enforceable. For example, a rental agreement may say that the owner is not responsible for injuries caused because the building is not kept in good repair. But, under the law, that may not be true. The agreement might say that you cannot make repairs and then deduct the cost from your rent. However, some state landlord tenant laws specifically allow the deductions.
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What happens when the lease expires? The lease may address the issue and spell out what will happen. For example, the lease may have an "automatic-renewal" clause. This means that, before the lease runs out the tenant or the landlord must inform the other of an intent to terminate. Otherwise, the lease will be renewed for the same period of time as the original agreement. However, in some sates, an Automatic-renewal clause cannot be enforced unless they are printed In bold type and of a certain size.
Holding over: In the event the lease does not contain an automatic-renewal clause, the rent is paid and the owner accepts your rent after the lease is up, the agreement may be automatically renewed - but only on a month-to-month basis.
However, it is important to review your state landlord-tenant law in the RHOL Property Management Web. Some state's law specifically address "Holding Over" and access penalties against the tenant.
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What are owner's rights? The property owner has a right to expect the rent on time. They can also expect that the tenant follow the terms of the lease and any rules agreed to under the lease.
Tenants have certain duties under statute and common law that need not be expressly named in a lease or rental agreement. They include but are not limited to: the duty to pay rent, even though repairs may not have been done; the tenant may not abandon the premises to avoid rent; the tenant may have a duty to make some repairs but may not make changes without the property owner's permission; the tenant has a duty to inform the owner about important facts. They must also behave reasonably, obey regulations and the law, observe health, safety and building codes; a tenant also has a duty to Prevent Waste.
A property owner cannot refuse to rent to people with children, however the owner can limit the number of people living in the apartment. See Occupancy Standards in the RHOL Property Management Web
The owner also has the right to sell the building, subject to any lease or agreements and tenant's rights. The owner must either transfer any tenant deposits to the new owner or refund them. If the deposits are transferred, the owner must inform tenants in writing and give them the new owner's name, address and telephone number.
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What are tenant's rights?
Tenants have the legal right to possess the premises. A tenant also has a right, under modern "Warranty of Habitability" statutes and court opinions to "Decent, Safe and Sanitary" housing. If the housing is, or becomes, uninhabitable through no fault of the tenant, the tenant may void any lease or agreement and sometimes recover damages.
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