Renting or Owning??? Principles of Law Mrs. Pollison

Landlord-Tenant Relationship  Landlord – owner who rents real property to someone else.  Lease – contract between tenant and landlord  Lessee – tenant  Lessor – landlord

Types of Tenancy – tenants interest in real estate they lease.  Tenancy for years:  Definite or fixed period of time  May be required in writing  Periodic tenancy:  Continues for successive, fixed periods of time  Notice required to terminate  Tenancy at will:  Indefinite period of time  No writing required  Notice required to terminate  Tenancy at sufferance:  Illegal occupancy  Tenant does not leave when tenancy expires  Must pay rent!

The Lease Agreement  Written agreement between lessor and lessee  General rules of contract apply  Terms of lease – rights & duties of landlord and tenant  Security deposit – often equals one month’s rent; returned at end of lease with interest if no damage; landlords often require 1 st & last month’s rent at contract signing  Assignment – transfer remaining period of time in lease to someone else  Subletting – transfer of part of term of lease, not remainder, to someone else  Option to renew – right to renew for one or more additional periods

Landlord duties and obligations  Refrain from discrimination  Maintain the premises  Transfer peaceful possession

Tenant’s duties and obligations  Abide by terms of lease  Avoid waste  Return fixtures

Eviction!!  Landlord deprives tenant of the possession of the premises!  Reasons:  Not paying rent  Staying after lease expires  Damaging the premises  Violating provisions in the lease  Constructive eviction: landlord breaches duty (no heat, no electricity)  Tenant may terminate lease and leave