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Property Management Webinar Series Lease Termination & Special Statutory Rights Instructed by Kinski Leuffer, Associate Counsel May 18, 2011.

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Presentation on theme: "Property Management Webinar Series Lease Termination & Special Statutory Rights Instructed by Kinski Leuffer, Associate Counsel May 18, 2011."— Presentation transcript:

1 Property Management Webinar Series Lease Termination & Special Statutory Rights Instructed by Kinski Leuffer, Associate Counsel May 18, 2011

2 How can a lease terminate?
by agreement by both parties when the lease ends by one of the parties breaching the lease according to law If a lease terminates, the tenant no longer has a right to possess the premises.

3 I. By Agreement A landlord and tenant may agree to terminate the lease at any time. Recommended: If both parties agree to terminate the lease, be sure to reduce it to writing and have both parties sign the agreement. Note: As both parties entered into the lease, both parties will have to agree to terminate the lease. This method is rare, but it still happens.

4 II. The Lease Ends The lease ends either by:
End of the Express Lease Term Month-to-Month Termination

5 II. The Lease Ends End of the Express Lease Term:
A provision in the lease expressly provides for the lease term. Expiration Date – P. 3A of the TAR Residential Lease (TAR-2001). After the expiration date, the lease will continue on a month-to-month basis, unless one of the parties provides the other party with notice. TAR’s Residential Lease (TAR-2001) automatically renews on a month-to-month unless the landlord or the tenant provides written notice to the other. P. 4A. Expiration Date  A provision in the lease expressly provides for the lease term. In general, leases require a 30-day notice to terminate, but read your lease. Recommended: Provide notice in writing. However, if you’re using the TAR lease, notice must be in writing.

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7 II. The Lease Ends If the lease is about to expire, the party wishing to terminate the lease on the expiration date, must give notice as required by the lease.

8 II. The Lease Ends What is the required notice under the TAR Lease?
The lease gives 2 options: 30 days before the Expiration Date or _____ days before the Expiration Date. This falls under P. 4A of the TAR Lease, which deals with the primary term only. Note: A landlord can choose not to renew for any reason as long as the landlord does not illegally retaliate or discriminate against the tenant.

9 If a box is not checked under P. 4A, P. 4A(1) is the default. P. 4C.
*Paragraph 4A refers to the Primary Term of the Lease. On the other hand, Paragraph 4B applies if the lease is on a month-to-month basis. If a box is not checked under P. 4A, P. 4A(1) is the default. P. 4C. Example: The lease provides that Tenant A has a 1 year lease term in which the expiration date of the primary term expires on May 18th, Paragraph 4A(1) is checked requiring 30 days notice of termination before the expiration date. Here, neither Landlord B nor Tenant A have provided the necessary written notice of termination that was required (30 days in this example). Hence, the lease will automatically renew on a month-to-month basis. Paragraph 4B will now apply for notice of termination. Again, it depends on whether 4B(1) or 4B(2) is checked.

10 II. The Lease Ends Note: Oral notice is not sufficient under any circumstances. P. 4C. The lease will continue until either the landlord or the tenant provides written notice to the other party. If you notice, both 4A and 4B require written notice. Oral notice is not sufficient under any circumstances.

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12 II. The Lease Ends Best Practice: If you do not intend to renew, be sure to provide TAR’s Notice of Landlord’s Intent Not to Renew (TAR-2217) within the required time frame.

13 TAR’s Notice of Landlord’s Intent Not To Renew (TAR-2217).

14 II. The Lease Ends Month-to-Month Termination:
Remember: After the lease term expires, the lease usually continues on a month-to-month unless either party provides the required notice. In general, leases require a 30-day notice to terminate, but read your lease. Recommended: Although a written notice is not required, it strongly encouraged to provide notice in writing. However, if you’re using the TAR lease, notice must be in writing.

15 II. The Lease Ends How do you terminate a month-to-month when the lease is silent? A month-to-month may be terminated by the tenant or the landlord by giving notice to the other. TPC § Note: This only applies if the landlord or tenant wants to terminate a month-to-month tenancy when lease is silent. It does not apply when the lease contains a notice provision.

16 II. The Lease Ends What is the required notice if the lease is silent?
Either the landlord or the tenant may terminate a month-to-month by giving the other party 30 days advance notice. TPC § If the lease is silent, either the landlord or the tenant may terminate a month-to-month lease at any time by giving the other party 30 days notice. Example: If the landlord gives 30 days notice on May 10th, the tenant will need to move out exactly 30 days later (June 9th) if the lease is silent. Remember: Either party can terminate a month-to-month for ANY reason by giving the 30 days notice. Exception: The landlord cannot terminate or fail to renew if the reason is to illegally retaliate or discriminate against the tenant. Note: Tenants receiving rental assistance under a government program (Section 8) may have additional protections. The program may require the landlord to show good cause for failing to renew a lease. For more information, contact the government program.

17 II. The Lease Ends When is the termination date?
If the rent-paying period is at least one month, the tenancy terminates on whichever is the later of: the day given in the notice for termination or one month after the day on which the notice is given. If the rent-paying period is less than a month, the tenancy terminates on whichever is the later of: the day following the expiration of the period beginning on the day on which notice is given and extending for a number of days equal to the number of days in the rent-paying period. TPC § (b)-(c). The termination can occur on any day of the month, as long as the termination date is at least one month from the date of the notice. If the tenant pays rent more than once a month and the lease is silent, it is sufficient for the tenant to give a termination notice equal to the interval between rental payments. Example: If the tenant pays rent weekly, then either party need give only one week’s notice in order to terminate the tenancy. If a tenancy terminates on a day that does not correspond to the beginning or end of a rent-paying period, the tenant is liable for rent only up to the date of termination. TPC § (d).

18 II. The Lease Ends These provisions do not apply if:
the written lease states otherwise or the tenant has breached the lease. TPC § (e).

19 II. The Lease Ends What if the lease contains a notice provision?
TAR’s Residential Lease (TAR-2001) provides a notice provision in Paragraph 4.

20 II. The Lease Ends If the TAR Lease continues on month-to-month basis, how long will it continue? Until either party provides the required written notice to the other party. P. 4B. If written notice is given, when is the notice of termination effective? The lease gives 2 options: on the last day of the month following the month in which the notice is given or on the date designated in the notice but not sooner than 30 days after the notice is given, and if necessary, rent will be prorated on a daily basis. Note: This means that either the landlord OR the tenant can provide written notice. This falls under P. 4B of the TAR Lease, which deals with a lease that has automatically renewed on a month-to-month basis.

21 If a box is not checked under P. 4A, P. 4A(1) is the default. P. 4C.
*Paragraph 4A refers to the Primary Term of the Lease. On the other hand, Paragraph 4B applies if the lease is on a month-to-month basis. If a box is not checked under P. 4A, P. 4A(1) is the default. P. 4C. Example: The lease provides that Tenant A has a 1 year lease term in which the expiration date of the primary term expires on May 18th, Paragraph 4A(1) is checked requiring 30 days notice of termination before the expiration date. Here, neither Landlord B nor Tenant A have provided the necessary written notice of termination that was required (30 days in this example). Hence, the lease will automatically renew on a month-to-month basis. Paragraph 4B will now apply for notice of termination. Again, it depends on whether 4B(1) or 4B(2) is checked.

22 III. Breach What happens if a tenant violates a provision of the lease? The landlord may be able to terminate the lease. Possible grounds for termination: failure to pay rent severely disturbing neighbors committing crimes on the property If you’re not using the TAR Lease, see your lease to determine whether the particular violation permits the landlord to terminate the lease.

23 III. Breach Consequences for breach or early termination by a tenant:
The tenant will be liable for: remaining rental payments under the lease and damages to the property. Note: Under the TAR Lease, even if the landlord accepts late rent, it is not a waiver of any other breach by the tenant. P. 33D. If the amount exceeds the amount of the security deposit, the landlord may pursue other actions. Other actions include: Sue for deficiency and report charges to credit bureaus. Remember: The tenant remains personally liable for all damages that exceed the amount of the security deposit.

24 III. Breach Under the TAR Lease, is there a right to terminate the lease prior to the termination date? No unless otherwise agreed or there is a special statutory right.

25 III. Breach What happens if a party terminates early in violation of the lease? If the landlord fails to comply with the lease, the tenant may seek any relief provided by law. P. 27A. Landlord will be liable to the tenant for damages resulting from the failure to comply with the lease. TPC § (a). If the tenant fails to timely pay all amounts due under the lease or fails to comply with the lease, the tenant will be in default. P. 27B. What relief may the tenant seek? If the tenant is not in default under the lease, but the landlord fails to comply with the lease (ex. repair), the landlord is liable to the tenant for damages resulting from the failure. To secure payment of the damages, the tenant has a lien on the landlord’s nonexempt property in the tenant’s possession and on the rent due to the landlord under the lease. TPC § (b). For the lien to arise, the tenant must not be in default under the lease and the landlord’s nonexempt property must be in the tenant’s possession. TPC § Note: Even if the landlord accepts late rent, it is not a waiver of any other breach by the tenant. P. 33D.

26 If tenant violates a provision of the lease, the tenant will be in default and:
(1) Landlord may terminate Tenant’s right to occupy the Property by providing Tenant with at least one day written notice to vacate; (2) all unpaid rents which are payable during the remainder of this lease or any renewal period will be accelerated without notice or demand; (3) Landlord may exercise Landlord’s lien under Paragraph 23 and any other rights under this lease or the Property Code; and (4) Tenant will be liable for: (a) any lost rent; (b) Landlord’s cost of reletting the Property including but not limited to leasing fees, advertising fees, utility charges, and other fees reasonably necessary to relet the Property; (c) repairs to the Property for use beyond normal wear and tear; (d) all Landlord’s costs associated with eviction of Tenant, including but not limited to attorney’s fees, court costs, costs of service, witness fees, and prejudgment interest; (e) all Landlord's costs associated with collection of amounts due under this lease, including but not limited to collection fees, late charges, and returned check charges; and (f) any other recovery to which Landlord may be entitled by law. Remember: Even if the landlord terminates the lease, the landlord cannot physically remove the tenant from the premises because the landlord is required to follow the eviction procedures.

27 III. Breach Does a tenant have a right to sublease?
No, there is no right to sublease unless the landlord gives permission. TPC § & P. 28B. Remember: The landlord has a duty to mitigate damages. TPC § & P. 27D. Can the tenant find a subtenant or replacement tenant to eliminate their liability? Not without the landlord’s consent. TPC § & P. 28B. If a new tenant is found, can the landlord charge double rent? No.

28 IV. According to Law Tenants may special statutory rights to terminate a lease early in certain situations involving: Family Violence Sex Offenses Military Deployment or Transfer Property owners and property managers must strictly follow these laws and be sensitive to victims of family violence and sex offenses. 2009 Statistics obtained from the THHSC (Texas Health and Human Services Commission): 196,713 Family Violence Incidents 111 women killed by their intimate partner 12,213 Adults received shelter from their abusive relationships 15,905 children received shelter

29 IV. According to Law Family Violence: How is family violence defined?
Family Violence – An act or threatened act by a member of a family or household against another member of the family or household intended to result in physical bodily harm or sexual assault. TPC § (a)(2). In 2005, the legislature passed a law giving certain victims of family violence rights to unilaterally terminate their lease. The property owner/manager is still protected because requirements are imposed on the tenant and property owner/manager can still hold the perpetrator (if a tenant/occupant) or other tenants liable under the lease. In 2009, the legislature expanded the right to include violence committed by someone other than a cotenant or occupant. Under Section of the Family Code, Family Violence is defined as: (1)  an act by a member of a family or household against another member of the family or household that is intended to result in physical harm, bodily injury, assault, or sexual assault or that is a threat that reasonably places the member in fear of imminent physical harm, bodily injury, assault, or sexual assault, but does not include defensive measures to protect oneself; (2)  abuse, by a member of a family or household toward a child of the family or household; or (3)  dating violence. Dating Violence means an act by an individual that is against another individual with whom that person has or has had a dating relationship and that is intended to result in physical harm, bodily injury, assault, or sexual assault or that is a threat that reasonably places the individual in fear of imminent physical harm, bodily injury, assault, or sexual assault, but does not include defensive measures to protect oneself. FC § For purposes of this title, "dating relationship" means a relationship between individuals who have or have had a continuing relationship of a romantic or intimate nature. The existence of such a relationship shall be determined based on consideration of: (1)  the length of the relationship; (2)  the nature of the relationship; and (3)  the frequency and type of interaction between the persons involved in the relationship. (c)  A casual acquaintanceship or ordinary fraternization in a business or social context does not constitute a "dating relationship.”

30 IV. According to Law Family Violence: What is the statutory right?
A tenant may terminate a lease early and avoid liability for future rent and any other sums due if the tenant is a victim of family violence. TPC § (b). It does not affect a tenant’s liability for delinquent, unpaid rent or other sums owed to the landlord before the lease was terminated by the tenant. TPC § (d) unless the lease does not contain the statutory required language.

31 IV. According to Law Family Violence:
May the tenant avoid liability for delinquent, unpaid rent or other sums owed to the landlord before the lease was terminated? Yes, unless the lease contain language substantially equivalent to the following: “Tenants may have special statutory rights to terminate the lease early in certain situations involving family violence or a military deployment or transfer.” TPC § (f). This is rent and other sums already owed under the lease.

32 TAR’s Lease contains the language in P
TAR’s Lease contains the language in P. 28, so tenants will not be able to avoid liability for delinquent, unpaid rent and other sums due under the lease.

33 IV. According to Law What are the requirements for a tenant to terminate a lease early for family violence committed by a cotenant or occupant? The tenant must obtain the following: a temporary injunction or a protective order. After the tenant obtains one of the above, the tenant must: provide a copy of the court document to the landlord and vacate the premises. TPC § (c-1). Occupant  a person who has the landlord’s consent to occupy a dwelling but has no obligation to pay the rent for the dwelling. TPC § (a)(2). Once the document has been delivered to the landlord and the unit is vacated, the tenant’s obligation for future rent and other sums ends. Note: When the violence is committed by a cotenant/occupant, the tenant does not need to provide written notice of lease termination to the landlord.

34 IV. According to Law Does the tenant still have a right to terminate if the violence is committed by someone other than a cotenant or occupant? Yes. At one time, a tenant could only terminate under this statute if the perpetrator was a cotenant or occupant. However, in 2009, the legislature expanded the right to include situations in which the abuser is not a cotenant or occupant. 34

35 IV. According to Law If the violence is committed by someone other than a cotenant or occupant, what are the requirements? The tenant must obtain the following: a temporary injunction, a protective order, or a temporary ex parte order. After the tenant obtains one of the above, the tenant must: provide a copy of the court document to the landlord, provide written notice of lease termination to the landlord on or before the 30th day before the lease term expires, and vacate the premises on the 30th day after the notice to vacate was delivered to the landlord. TPC § (b) and (c). If the perpetrator is someone other than a cotenant or occupant, the requirements are a little different. Here, the tenant may also provide a temporary ex parte order, and the tenant must give 30 days notice before lease termination. The tenant remains responsible for rent during those 30 days. In either case (cotenant/occupant or other), the tenant remains liable for any past due rent and other sums due.

36 IV. According to Law Do other parties to the lease remain liable under the lease? Yes. If a cotenant committed the violence, does the cotenant remain liable under the lease? 36

37 IV. According to Law May a tenant waive his right to terminate the lease under the family violence statute? No, a tenant’s right to terminate a lease before the end of the lease term, vacate the dwelling, and avoid liability may not be waived by a tenant. TPC § (g).

38 IV. According to Law What is the landlord’s liability for violation of the statute? A landlord in violation of the statute is liable to the tenant for: actual damages, a civil penalty equal to 1 month’s rent plus $500, and attorney’s fees. TPC § (e). 38

39 IV. According to Law Sex Offenses:
A tenant may terminate a lease early and avoid liability for future rent and any other sums due if the tenant or the tenant’s family member is a victim of a sexual offense. The offense must have taken place within the past 6 months on the premises or at any dwelling on the premises. TPC § (b). Effective Jan. 1, 2010, the legislature passed the statutory right to terminate a lease for survivors of sexual assault that occurred on the premises w/in the last 6 months. Language of the Statute: Protects a tenant, who is a victim of sexual assault or a parent or guardian of a victim of sexual assault, aggravated sexual assault, or continuous sexual abuse of a child, that takes place during the preceding 6 month period on the premises or at any dwelling on the premises.

40 IV. According to Law May the tenant avoid liability for delinquent, unpaid rent or other sums owed to the landlord before the lease was terminated? Yes, unless the lease contains language substantially equivalent to the following: “Tenants may have special statutory rights to terminate the lease early in certain situations involving sexual assault or sexual abuse.” TPC § (g). Except for Subsection (g), the Sex Offense statute does not affect a tenant’s liability for delinquent, unpaid rent, or other sums owed to the landlord before the lease was terminated by the tenant. TPC § (e). If the language is in the lease, a termination does not release the tenant for delinquent, unpaid rent, or other sums owed to the landlord before the termination. TPC § (e) and (g).

41 TAR’s Lease contains the language in P
TAR’s Lease contains the language in P. 28, so tenants will not be able to avoid liability for delinquent, unpaid rent and other sums due under the lease.

42 IV. According to Law What are the requirements for a tenant to terminate a lease early if a sex offense has been committed?

43 IV. According to Law The tenant must provide to the landlord a copy of the following: documentation of the assault or abuse from a licensed health care services provider who examined or evaluated the victim, documentation of the assault or abuse from a licensed mental health services provider who examined or evaluated the victim, documentation of the assault or abuse of the victim from an authorized individual, who provided services to the victim, or a protective order. TPC § (c). The tenant must also: provide written notice of termination to the landlord on or before the 30th day before the date the lease terminates and vacate the dwelling on the 30th day after delivering the notice to vacate to the landlord. TPC § (d). The tenant needs to provide a copy of documentation of the assault from a licensed health care services provider, a licensed mental health services provider, an authorized individual, or a protective order. Similar to family offense cases involving someone other than a cotenant/occupant, the tenant must also provide at least 30 days written notice. The tenant remains liable for the rent during thos 30 days.

44 IV. According to Law May a tenant waive his right to terminate the lease under the sex offense statute? No, a tenant’s right to terminate a lease before the end of the lease term, vacate the dwelling, and avoid liability may not be waived by a tenant. TPC § (h). A landlord in violation of the statute is liable to the tenant for: actual damages, a civil penalty equal to 1 month’s rent plus $500, and attorney’s fees. TPC § (f).

45 IV. According to Law Servicemembers:
A tenant who is a servicemember or a dependent of a servicemember may terminate a lease early and avoid liability for future rent and any other sums due under the lease. TPC § (b). The fed law, Servicemembers Civil Relief Act (SCRA), gives servicemembers special statutory rights to terminate a lease early. IT was passed in 2003 and amended in 2004. In Texas, the legislature expanded the federal law in 2005. Servicemembers include all members of the Army, Navy, Marine Corps, Air Force, Coast Guard, and all officers of the Public Health Service. 45

46 IV. According to Law What is required for a servicemember or dependent to terminate a lease? One of the following events must occur: the lease was executed by or on behalf of a person who subsequently enters military service before the lease terminates or a servicemember, while in military service, executes a lease and later receives military orders: for a permanent change of station or to deploy with a military unit for a period of 90 days or more. TPC § (b). Servicemembers include all members of the Army, Navy, Marine Corps, Air Force, Coast Guard, and all officers of the Public Health Service. 46

47 IV. According to Law What are the requirements?
The tenant must deliver to the landlord: a written notice of the termination of the lease and a copy of an appropriate government document evidencing the tenant’s entry into military service or a copy of the tenant’s military orders for a permanent change or deployment. TPC § (c). 47

48 IV. According to Law When is termination effective?
If the lease provides for monthly payment of rent, the effective date for termination occurs 30 days after the first date of the next rent payment. If the lease does not provide for monthly payments, the effective date for termination is the last day of the month in which the notice of termination is given. TPC § (d). A landlord, not later than the 30th day after the effective date of the termination of a lease, shall refund to the residential tenant terminating the lease all rent or other amounts paid in advance under the lease for any period after the effective date of the termination of the lease. TPC § (e). 48

49 TAR’s Lease provides for monthly payments, so the effective date is the 30th day after the first date on which the next rental payment is due on which the notice is delivered. 49

50 IV. According to Law May the tenant avoid liability for delinquent, unpaid rent or other sums owed to the landlord before the lease was terminated? Yes, unless the lease contain language substantially equivalent to the following: “Tenants may have special statutory rights to terminate the lease early in certain situations involving family violence or a military deployment or transfer.” TPC § (g). This is the same as under family violence. 50

51 IV. According to Law May a tenant to waive his right to terminate the lease? Yes, a tenant and landlord may agree to waive the tenant’s rights if the tenant or any dependent living with the tenant moves into: base housing or other housing within 30 miles of the dwelling. Note: The waiver must be signed and in writing in a document separate from the lease. The waiver does not apply if: the tenant or the dependent moves into housing owned or occupied by family or relatives of the tenant or dependent or the tenant and the dependent move, wholly or partly, because of a significant financial loss of income caused by the tenant's military service. TPC § (j). Generally, a tenant cannot waive his right, however there is an exception. TPC § (i). A waiver can occur only when the serviceperson or dependent is moving into base housing or into a non-relative’s home within 30 miles of the dwelling. TPC § (j). Significant financial loss of income means a reduction of 10 % or more of the tenant's household income caused by the tenant's military service. TPC § (k). A landlord is entitled to verify the significant financial loss of income in order to determine whether a tenant is entitled to terminate a lease if the tenant has signed a waiver under this section and moves within 30 miles of the dwelling into housing that is not owned or occupied by family or relatives of the tenant or the tenant's dependent.   For purposes of this subsection, a pay stub or other statement of earnings issued by the tenant's employer is sufficient verification. 51

52 IV. According to Law A landlord in violation is liable to the tenant for: actual damages, a civil penalty equal to 1 month’s rent plus $500, and attorney’s fees. TPC § (h). 52

53 If you are working with a tenant and any of these situations arises, the tenant can use TAR’s Notice of Tenant’s Intent to Vacate (TAR-2218). Recommended: Don’t take sides in a dispute. 53

54 Other: Emergencies: A landlord may not:
prohibit or limit a tenant’s right to summon police or other emergency assistance in response to family violence or impose monetary or other penalties on a tenant who summons police or emergency assistance in response to family violence. A landlord who violates this right is liable for: a civil penalty in an amount equal to 1 month’s rent, actual damages suffered by the tenant as a result, court costs, injunctive relief, and reasonable attorney’s fees. TPC § Remember: A landlord that has an on-site managmeent or superintendent’s office for a residential rental proeprty must provide a tenant a telephone number that will be answered 24 hours a day for the purpose of reporting emergencies related to a condition of the leased premieses that materially affects the physical health or safety of a tenant. TPC § (a). Only relates to conditions of the property. A provision in a lease is void if it: (1) waives a tenant's right to summon police or other emergency assistance in response to family violence; or (2)  exempts any party from a liability or a duty under this section. TPC § (b). 54

55 Other: Public Indecency:
Can the landlord terminate a lease if the tenant is convicted of a crime? Yes, if the tenant or occupant uses the property in a way that leads to a conviction for violating Chapter 43 of the Texas Penal Code (public indecency). TPC § Public Indecency can include: Deviate sexual intercourse, prostitution, sexual contact, sexual conduct, and sexual intercourse. Note: There are 3 other requirements necessary to terminate the lease for public indecency. They are as follows: 1) the lease or renewal was executed after June 15, 1981; 2) the convicted person has exhausted/abandoned all avenues of direct appeal; and 3) the fee owner or intermediate lessor gives written notice w/in 6 months after the appeals are exhausted/abandoned. If these are met, the right of possession to the property reverts to the landlord 10 days after notice is given. TPC §

56 TAR Forms The following TAR Forms are available for member use only:
Residential Lease (TAR-2001) Notice of Landlord's Intent Not to Renew (TAR-2217) Notice of Tenant’s Intent to Vacate (TAR-2218)

57 Common Questions & Answers
Q1: True or False. A landlord has a duty to mitigate damages by reletting the premises if the tenant breaches the lease by moving out early without legal cause. Questions obtained from Texas Real Estate Center, Austin Tenants’ Council, TexasRealEstate.com, Inman News, and property managers.

58 Common Questions & Answers
Q1 Answer: True. Since 1997, landlords have been required to mitigate rent in residential leases by trying to relet the vacated premises. 58

59 Common Questions & Answers
Q2: True or False. The landlord must have a reason for not renewing a lease. 59

60 Common Questions & Answers
Q2 Answer: False. Either the landlord or tenant may terminate a lease at the end of the term without any reason, except in low-income housing tax credit properties. The landlord may not refuse to renew a lease in retaliation or for reasons grounded in illegal discrimination. In these properties, the landlord must have good cause to terminate the lease. The landlord may not refuse to renew a lease in retaliation for the tenant having requested repairs within the previous six months or for reasons grounded in illegal discrimination. In the case of termination at the end of the lease, notice is for the same length of time as the rental payment period. 60

61 Common Questions & Answers
Q3: True or False. If a tenant breaks a lease, the tenant will only lose the security deposit. 61

62 Common Questions & Answers
Q3 Answer: False. Unless the landlord agrees otherwise in writing, the tenant will be liable for any damages incurred by the landlord because of the tenant’s breach and for all the monthly payments during the term of the lease as long as the property is not re-rented. Remember the duty to mitigate. 62

63 Common Questions & Answers
Three roommates signed a TAR Residential Lease for 12 months. One of the roommates does not get along with the other two, so he offers to move out. If he can’t find someone to replace him, what penalties will the remaining roommates incur? 63

64 Common Questions & Answers
Q4 Answer: The roommates will need the landlord’s permission to terminate the lease early or obtain a replacement under paragraph 28. Unless the landlord agrees in writing to any changes, all 3 of the roommates will remain liable under the lease. Even if a replacement is found, the replacement must be acceptable to the landlord. P. 28B(2). 64

65 Common Questions & Answers
Q5: True or False. A landlord wishing to move back into their property has a right to break the lease at any time before it expires. 65

66 Common Questions & Answers
False. Since the lease is a legally binding contract, a landlord cannot force a tenant to vacate the premises prior to the end of the lease. If done, the tenant could have a claim against the landlord for monetary damages. If the tenant commits a breach, the landlord could take legal action to terminate the lease. 66

67 Common Questions & Answers
Q6: True or False. There are 3 roommates. One of the roommates is sexually assaulted while in the apartment. All the tenants have the right to immediately terminate their leases without future liability for the balance of the lease term. 67

68 Common Questions & Answers
Q6 Answer: False. The right of termination exists for the tenant that was assaulted, but it is unclear as to the other tenants who were not assaulted. However, to terminate the lease, the attack has to be documented by a health-care provider (among others). Thereafter, the tenant who was assaulted (and possibly the other tenants) may then terminate the lease and avoid liability beginning on the date after the tenant: provides a copy of the document substantiating the attack to the landlord, provides written notice of termination of the lease to the landlord on or before 30 days before the lease terminates and vacates the premises on the 30th day after delivering the notice to vacate to the landlord. There is no right to terminate the lease immediately in this instance. See § 68

69 Common Questions & Answers
Q7: True or False. Same facts as Q6. Rather than telling anyone, the roommates keep the assault a secret for seven months. When the parent of the victim finds out, the parent attempts to terminate the lease on their daughters' behalf. The parent has the right do so under these circumstances. 69

70 Common Questions & Answers
Q7 Answer. False. The tenants' ability to terminate the lease for sexual assault requires the assault to occur within the prior six months. Thus, the right to terminate the lease expired. Other Questions: Three unrelated roommates lease a home and one is deployed. What happens to the other 2 roommates? Unless the 2 other roommates are dependents, they will remain liable under the existing lease. If a servicemember is entitled to early termination, is he entitled to a refund of this security deposit. Yes, and the landlord cannot deduct rent that would come due after the effective date of the lease termination (rent cannot be accelerated). 70

71 Thank you Thanks for your participation in our 7th PM Webinar!
Future Topics Foreclosures/Evictions – Aug. 17 Questions? Contact the Legal Hotline 800/ You can download this presentation by visiting the Property Management Page. View the Texas Property Code. Give us your feedback! Send to:


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