Presentation on theme: "Chapter 11 Rentors/Landlords. Vocabulary Tenant – a party to a lease who pays rent to the landlord in exchange for the possession and use of real property."— Presentation transcript:
Chapter 11 Rentors/Landlords
Vocabulary Tenant – a party to a lease who pays rent to the landlord in exchange for the possession and use of real property Landlords – the owner of residential property who leases is to a tenant, or renter, in exchange for rent Lease – contract, usually written, by which the relationship of landlord and tenant is created, and a property interest is created.
Rights and Duties Generally rights and duties are proscribed by the lease. Collect Rent/ Enjoy Premises Security Deposits Reasonable care by both parties
Leases Requirements –Express the intention to establish the relationship of landlord/tenant –State the exclusive possession transfers to the tenant at the beginning of the lease term –Provide for reversion of property to landlord –Adequately describe the premises –Provide terms of payment and duration
Types of Tenancy Tenancy for years – agreement is for a stated period of time. Periodic Tenancy – agreement is for a period but the agreement is automatically renewed at the end of the period unless notice is given by either party Tenancy at will – can end at anytime without any notice Tenancy at sufferance – tenant remains on the property after lease is up.
Public Policy Rent Control –Good idea or bad? Roommates –Can you discriminate based upon sex? - Can you discriminate based upon race? Nonrefundable security deposits
Damages and Eviction Abandonment – occurs when the tenant leaves before his/her agreement is up. –If you move out and pay up to the end of your lease, what happens if the landlord rents out the premises to someone else? Forcible eviction – physically removing tenants. Book says this type of eviction is now illegal.
Eviction Continued Peaceful eviction – is this legal? –Punitive damages available. Constructive Eviction How do you evict someone? –Unlawful detainer –Grace Period
Security Deposits Often set at the rate of one months rent –Why have them? Tenant is responsible for damages Ordinary wear and tear should not come out of your deposit.
Warranties Implied Warrant of Habitability - warranty that the premises are fit for residential use –Who is responsible for repairs? –How do you get hot water when your landlord refuses to fix the water heater. Covenant of Quiet Enjoyment – right to enjoy premises –Can a landlord enter at will?
Negligence Duties of landlord depends on state law. –Most states hold landlords responsible for common areas and walkways –Some states require the landlord to take reasonable measures to protect tenants from criminal activity. Gomez v. New York City. May have to prove the assailant was an intruder Duty to Inform Exculpatory Clauses
Assigning and Subletting Assignment is the transfer of a full lease Subletting is a transfer of a less than full lease. Duty to mitigate.