Chapter 50 Landlord-Tenant Law Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

50-2 Landlord-Tenant Law: Terminology Landlord (Lessor): Property owner Landlord (Lessor): Property owner Tenant (Lessee): Party who assumes temporary possession of property Tenant (Lessee): Party who assumes temporary possession of property Leasehold Estate: Property subject to the lease Leasehold Estate: Property subject to the lease Lease: Contract between landlord and tenant Lease: Contract between landlord and tenant

50-3 Types Of Leases Definite Term: Automatically expires at end of designated term Definite Term: Automatically expires at end of designated term Periodic Tenancy: Created for a recurring term Periodic Tenancy: Created for a recurring term Tenancy At Will: Termination may occur at any time Tenancy At Will: Termination may occur at any time Tenancy At Sufferance: Tenant fails to leave property after termination of lease Tenancy At Sufferance: Tenant fails to leave property after termination of lease

Fair Housing Act Prohibits landlords from discriminating on basis of race, color, sex, religion, national origin, or familial status 50-4

50-5 Rights and Duties of Landlord and Tenant: Terminology and Rules of Law Covenant of Quiet Enjoyment: Promise that tenant has right to quietly enjoy the land Covenant of Quiet Enjoyment: Promise that tenant has right to quietly enjoy the land Actual Eviction: Landlord physically prevents tenant from entering premises; can be full (prohibited from all parts) or partial (prohibited from some parts) Actual Eviction: Landlord physically prevents tenant from entering premises; can be full (prohibited from all parts) or partial (prohibited from some parts) Constructive Eviction: Premises become unsuitable for use due to landlord Constructive Eviction: Premises become unsuitable for use due to landlord Implied Warranty of Habitability: Requirement that premises be fit for “ordinary” residential purposes Implied Warranty of Habitability: Requirement that premises be fit for “ordinary” residential purposes Waste: Tenant conduct that causes permanent and substantial injury to landlord’s property Waste: Tenant conduct that causes permanent and substantial injury to landlord’s property Alterations: Changes that affect condition of premises; generally cannot be made without landlord’s consent Alterations: Changes that affect condition of premises; generally cannot be made without landlord’s consent

50-6 Examples of Duties and Corresponding Rights of Landlord and Tenant Duty Landlord duty to put tenant in possession Landlord duty to put tenant in possession Landlord duty of covenant of quiet enjoyment Landlord duty of covenant of quiet enjoyment Tenant duty not to commit waste Tenant duty not to commit waste Corresponding Right Tenant’s right to retain possession Tenant’s right to quiet enjoyment of the property Landlord’s right to reimbursement for tenant’s waste

50-7 Rights and Duties of Landlord and Tenant: Terminology and Rules of Law (Continued) Common Areas: Areas used by all tenants for which landlord is responsible Common Areas: Areas used by all tenants for which landlord is responsible Options when landlord fails to repair leased property: Options when landlord fails to repair leased property: Terminate lease Terminate lease Withhold rent Withhold rent Repair and deduct costs of repair Repair and deduct costs of repair Sue landlord Sue landlord

50-8 Rights and Duties of Landlord and Tenant: Terminology and Rules of Law (Continued) Rent: Compensation paid to landlord for tenant’s exclusive use of and right to possess premises Rent: Compensation paid to landlord for tenant’s exclusive use of and right to possess premises Rent Escalation Clause: Clause included in lease that allows landlord to increase rent for increases in cost of living, property taxes, or tenant’s commercial business Rent Escalation Clause: Clause included in lease that allows landlord to increase rent for increases in cost of living, property taxes, or tenant’s commercial business Landlord’s Lien: Landlord’s right to some/all of tenant’s property when rent unpaid Landlord’s Lien: Landlord’s right to some/all of tenant’s property when rent unpaid

50-9 Liability For Injuries on the Premises Landlord Liability: Landlord can be held liable for injuries sustained in common areas, and for injuries that occur outside common areas due to lack of repairs landlord should have made Landlord Liability: Landlord can be held liable for injuries sustained in common areas, and for injuries that occur outside common areas due to lack of repairs landlord should have made Landlord has responsibility to ensure that premises are in reasonably fit condition before tenant takes control Landlord has responsibility to ensure that premises are in reasonably fit condition before tenant takes control Foreseeability of crime is a factor in liability Foreseeability of crime is a factor in liability Tenant’s Liability: Tenant must keep premises in a “reasonably safe” condition, but is responsible only for those areas where customer or visitor reasonably expected to go Tenant’s Liability: Tenant must keep premises in a “reasonably safe” condition, but is responsible only for those areas where customer or visitor reasonably expected to go

50-10 Transferring Interests of Leased Property Landlord Transfer of Interest: Landlord may transfer property; new owner becomes landlord until tenant’s lease expires Landlord Transfer of Interest: Landlord may transfer property; new owner becomes landlord until tenant’s lease expires Tenant Transfer of Interest: Tenant Transfer of Interest: Assignment: Transfer of tenant’s entire interest in leased property Assignment: Transfer of tenant’s entire interest in leased property Sublease: Transfer of less than all of tenant’s interest in leased property Sublease: Transfer of less than all of tenant’s interest in leased property

50-11 Termination of Lease Breach of Condition By Landlord: Landlord interferes with tenant’s use and enjoyment of premises Breach of Condition By Landlord: Landlord interferes with tenant’s use and enjoyment of premises Forfeiture: Tenant/landlord fails to perform conditions specified in lease Forfeiture: Tenant/landlord fails to perform conditions specified in lease Destruction of Premises: Fire/other disaster destroys premises Destruction of Premises: Fire/other disaster destroys premises Surrender: Mutual agreement between landlord and tenant Surrender: Mutual agreement between landlord and tenant Abandonment: Tenant moves out of leased premises before end of term Abandonment: Tenant moves out of leased premises before end of term