44.1 b a c kn e x t h o m e Chapter 44 Objectives  Explain the nature and formation of the landlord/tenant relationship.  Name the various types of tenancies.  List the rights and duties of tenants and landlords.  Explain how a lease may be terminated. © 2002 West Educational PublishingTo accompany Law for Business, 14e, by Ashcroft and Ashcroft

44.2 b a c kn e x t h o m e Leases A lease may be the following:  Written (if terms extend longer than one year) or oral.  Express or implied.  Formal or simple. LEASE

44.3 b a c kn e x t h o m e Leases A lease should include the following:  Property description.  Time and place of rent payment.  Terms upon vacating.  Duration and nature of tenancy. LEASE

44.4 b a c kn e x t h o m e Types of Tenancy Tenancy for years  Lasts for a definite, terminable time. Tenancy from year to year  Lasts for an indefinite time with rent payable annually.

44.5 b a c kn e x t h o m e Tenancy Tenancy at will  Lasts for an uncertain period; either tenant or landlord can terminate. Tenancy at sufferage  When tenant holds land after the lease expires.

44.6 b a c kn e x t h o m e Rights of Tenant Right of possession  Tenants have same rights as owners. Right to use premises  Unless otherwise stated, tenant may use the real estate in any way consistent with the nature of the property. Right to assign or sublease  In an assignment, the assignee pays rent directly to the landlord. In a sublease, the tenant transfers some of the premises and collects rent.

44.7 b a c kn e x t h o m e Rights and Duties of Landlord Rights  To regain possession.  To enter the property and preserve it.  To assign rights. Duties  To pay taxes and assessments.  To protect the tenant from concealed defects.  To mitigate damage upon tenant’s abandonment.