1. Renting Realty
Chapter 22

2. What is a Lease? (22-1) Lease Rent
An agreement in which one party receives temporary possession of another’s real property in exchange for rent
Rent
The consideration given in return for temporary possession

3. Those Involved in a Lease
Landlord
The person who actually owns the realty
Tenant
The person receiving the possession
Leasehold estate
The ownership interest of the tenant

4. The Agreement Lease or Rental Agreement Oral arrangements
A written document that describes the rental transaction
Oral arrangements
If the lease is for more than a year it has to be written or courts may not enforce them
If it is important include it in the lease agreement

5. Types of Leases Periodic Tenancy
The leasehold is for a renewable period of time with rent due at stated intervals
Sometimes a rental period is identified
Tenancy from Month-to-Month
When rent is paid monthly
Automatic renewal unless notice is given
Notice is generally equal to the length of the payment period

6. Types: Tenancy for Years
When a leasehold is for a definite period of time
6 months, one year, ninety-nine years
Different because there is a specific date for the ending of the lease
At the end of the lease period it terminates automatically without notice

7. Types: Tenancy at Sufferance
If tenants have a hard time leaving the rented property before the day when the lease ends
AKA: holdover tenant
Consequences
Eviction: The sheriff forcibly removes the tenant
Liable for reasonable rent for the holdover period
Can be double or tripled
Can be forced to pay for another lease period

8. Types: Tenancy at Will
Possession of land with the owner’s permission but without an agreement as to the term of the lease or amount of rent
May be terminated at any time by either party with minimal notice

9. Tenant’s Rights (22-2) Right of Possession
The tenant has the right of possession on the time agreed upon in the lease
Landlords GENERALLY don’t have a right to enter leased properties without that right being spelled out in the lease
Eviction
If the landlord blocks the tenant from possession of all the real property
If the eviction is improper the tenant may recover damages

10. Tenant’s Rights Constructive Eviction
IF the landlord fails to perform certain duties as defined in the lease or by statute
IF the tenant abandons the premises because of the breach

11. Tenant’s Rights
Right to use the property as stated in the lease or for any purpose for which it was designed

12. Tenant’s Rights Assignment of a lease Sublet
Takes place when the tenant transfers his or her entire interest in the lease to a third person
Sublet
Leases all of the property to a third person
For less than the remaining time on the lease
For the entire time remaining on the lease
The original tenant is still directly liable
Generally require the landlord’s prior approval

13. Tenant’s Duties Duty to Pay Rent
Pay the agreed-upon rent when it is due
It may also be a percentage of the profits of a business
Generally required to pay first and last month’s rent up front
Residential rentals may require a cleaning or security deposit
The deposit is refunded at the end of the lease if nothing is damaged

14. Tenant’s Duties Duty to take care of the property
The tenant must return the property in the same condition as when the lease began
Can include making all minor repairs
Tenants will be held responsible for misuse or negligence
Tenants can’t make major changes without permission
Notification of landlord is expected when major repairs are needed

15. Tenant’s Duties Torts Duty Renter’s Insurance
Duty to care for those who enter the property
An injury to an invitee caused by a tenant’s negligence
Exception is when the landlord knew about a danger but didn’t disclose the information
Renter’s Insurance
Insurance to protect against loss from injury claims and other loss when renting

16. Landlord’s Rights and Duties 22-3
Right to Rent
Tenant vacates early they are still responsible for the unpaid rent
Duty to mitigate
The landlord has to make an effort to rerent the property
The original tenant is liable for the remaining rent if it can’t be rerented
If it is rerented but at a lower rent the original tenant is responsible for the difference

17. Landlord’s Rights and Duties
Tenant Fails to Vacate
If the tenant fails to pay rent but remains in possession of the premises
The landlord may sue to evict
They may not do it themselves

18. Landlord’s Rights and Duties
Right to Regain the Realty and Fixtures
The landlord is entitled to regain possession at the end of the lease
Any added fixtures are to remain with the property
Trade fixtures added by business tenants are not subject to this same rule
Duty to Maintain the Premises
The landlord is responsible for the upkeep of the exterior and common or public areas
Hallways, stairs, elevators, yards, exercise rooms, pools, etc

19. Landlord’s Rights and Duties
Duty to Maintain the Premises
Warranty of habitability
Landlords are required to provide residential property in a condition fit for human living
Housing Code
In large cities this is law that prescribe in detail the required condition of housing properties
Can include
Electrical, roof, ceilings and walls, outside doors and windows, bathrooms,ventilation

20. Landlord’s Rights and Duties
Torts Duty
Landlords are responsible if someone is injured in common areas
Landlords can be held responsible for injuries sustained by renters
IF the injuries result from defective conditions of the property
IF the conditions are concealed or not readily apparent

21. Landlord’s Rights and Duties
Duty to Pay Property Taxes
Landlord’s generally pay all property taxes
Long-term leases of commercial property
The taxes can be paid by the tenant
Fire insurance can also be paid by the tenants

22. Landlord’s Rights and Duties
Fair Housing Act Duties
Cannot discriminate on the basis of race, religion, sex, national origin, handicap or family status
Duty to Voluntary Termination
A lease can be terminated by agreement before the expiration of the term
This has to be expressed to and accepted by the landlord