The Rental Agreement Section 33.1

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Section 33.1 The Rental Agreement Section 33.2 Responsibilities of Landlord and Tenant 33 Chapter Renting a Place to Live

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live What You’ll Learn How to define the main types of tenancies available to persons who rent real property (p. 712) How to describe some of the common covenants found in a lease (p. 714)

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live What You’ll Learn How to summarize rent control laws (p. 718)

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Why It’s Important Knowing all you can about rental agreements and the types of tenancies will help you choose a place to live and know how to address disputes that may arise.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Legal Terms lessee (p. 712) lessor (p. 712) tenancy (p. 712) tenancy for years (p. 713) periodic tenancy (p.713)

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Legal Terms rent day (p. 713) tenancy at will (p. 714) tenancy at sufferance (p. 714) lease (p. 714) sublease (p. 716)

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Tenancy Types of Tenancies Section Outline Tenancy for Years Periodic Tenancy Tenancy at Will Tenancy at Sufferance

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live The Lease Agreement Terms in a Lease Section Outline Rent Control

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Pre-Learning Question What is a tenant?

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Tenancy If you rent real property, such as an apartment or house, you are a tenant. If you own real property and rent it to someone else, you are a landlord.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Tenancy The contract between a tenant and a landlord is called a lease. In a lease, the tenant is known as the lessee, and the landlord is the lessor.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live 33.1 What to Look for in Selecting an Apartment Location   Near school, work   Near church, mosque, synagogue   Near shopping   Near public transportation   Near recreation: parks, museums

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live 33.1 What to Look for in Selecting an Apartment Finances   Amount of monthly rent   Amount of security deposit   Cost of utilities   Length of lease

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live 33.1 What to Look for in Selecting an Apartment Building   Condition of building and grounds   Parking facilities   Recreation on premises   Security system   Condition of hallways, stairs, and elevators   Access to mailboxes

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live 33.1 What to Look for in Selecting an Apartment Layout and Facilities   Size and condition of unit   Type and controls of heating and cooling systems   Plumbing and water pressure   Type and condition of appliances   Condition of doors, locks, windows, closets, and floors

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Pre-Learning Question What is a tenancy?

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Although they rent from someone else, tenants own an interest in the real estate they lease, called a leasehold estate or tenancy. Types of Tenancies

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Types of Tenancies The types of tenancies are tenancy for years periodic tenancy tenancy at will tenancy at sufferance

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Tenancy for Years A tenancy for years is the right to occupy property for a definite or fixed period of time. It may be for one week or 99 years, as long as the time period is definite.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live A periodic tenancy, also called a tenancy from year to year (or month to month, or week to week), is a tenancy that continues for successive fixed periods. Periodic Tenancy

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Periodic Tenancy One of the parties may terminate this tenancy by giving advance notice to the other party.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Periodic Tenancy The notice requirement differs from state to state, but it is often the period between rent days. The rent day is the day on which the rent is due.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Tenancy at Will A tenancy at will is an interest in real property that continues for an indefinite period of time. No written agreement is required to create this tenancy.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Tenancy at Will It is terminated when either the landlord or the tenant gives the notice required by state laws, which is usually 30 days.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Tenancy at Sufferance A tenancy at sufferance arises when a tenant doesn’t leave the premises after his or her tenancy has expired.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Tenancy at Sufferance This situation often occurs when a tenancy for years expires or when a tenancy at will has been properly terminated by the landlord but the tenant remains in possession.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Jill Stunzi signed a lease to rent an apartment for six months. What type of tenancy has she agreed to?

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live ANSWER Tenancy for years.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Jamal Youngston has an oral agreement with Mary O’Donnell to rent her basement apartment until he graduates from college. What type of tenancy has he agreed to?

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live ANSWER Tenancy at will.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Marcus Kennedy is a contract painter and often works for weeks on end away from home. During these times he often rents a hotel room from week to week. What type of tenancy is he agreeing to?

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live ANSWER Periodic tenancy.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Pre-Learning Question What is a lease agreement?

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live The Lease Agreement A written agreement between a lessor and a lessee is called a lease. The lease creates the landlord-tenant relationship. It provides the tenant with exclusive possession and control of the real property of the landlord.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Terms in a Lease The terms of a lease, known as covenants, set forth the rights and duties of the landlord and tenant.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Terms in a Lease Common terms, or covenants, found in a lease include security deposit decoration and repairs assignment and subletting option to renew or to purchase

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Security Deposit Landlords often require you to pay a security deposit and the last month’s rent at the beginning of a tenancy in order to secure the payment of rent or repairs for damages to the property.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Decoration and Repairs The landlord has no obligation to decorate the premises, unless the lease says so or it is required by statute or local ordinance.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Decoration and Repairs However, the landlord must make any repairs necessary to keep the premises fit for living. This includes repairs such as fixing a leaky roof or a broken furnace.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Assignment and Subletting An assignment of a lease occurs when you transfer the remaining period of time in a lease to someone else.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Assignment and Subletting A sublease occurs when you transfer part of the term of lease, but not the remainder of it, to someone else.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Assignment and Subletting If a landlord doesn’t want a tenant to assign or sublet the property, a covenant in the lease must say that. Otherwise, a tenant may either assign or sublet the property to someone else.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Option to Renew or to Purchase The option to renew the lease gives renters the right to a new lease, under the same terms, for an additional period.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Option to Renew or to Purchase The option to purchase the property is an agreement by the lessor to sell the property to the lessee for a stated price.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Pre-Learning Question What is rent control?

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Some large communities have passed rent control laws to keep rent within an affordable range. Rent Control

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live These laws limit what landlords can charge for rental property and also often contain procedures that must be followed before tenants can be evicted. Rent Control

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Reviewing What You Learned 1. 1.What is the difference between a tenancy for years, a periodic tenancy, and a tenancy at will? Section 33.1 Assessment

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Reviewing What You Learned A tenancy for years is for a fixed time period. A periodic tenancy continues for successive periods until one of the parities ends it by giving proper notice. Section 33.1 Assessment Answer

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Reviewing What You Learned A tenancy at will is for an indefinite time period and is often an oral agreement. Section 33.1 Assessment Answer

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Reviewing What You Learned 2. 2.Name the common covenants found in a lease. Section 33.1 Assessment

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Reviewing What You Learned Security deposit, decoration and repairs, assignment and subletting, and option to renew or to purchase. Section 33.1 Assessment Answer

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Reviewing What You Learned 3. 3.Explain rent control laws. Section 33.1 Assessment

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Reviewing What You Learned Rent control laws exist to keep rents within an affordable range. The laws limit the amount of rent the landlords may charge for rental property. Section 33.1 Assessment Answer

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Reviewing What You Learned They often contain procedures that must be followed before tenants can be evicted. Section 33.1 Assessment Answer

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Section 33.1 Assessment Critical Thinking Activity Leasing Terms Imagine you are ready to rent a place to live. Make a list of covenants you would want in your lease, and explain why you would want these covenants.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Section 33.1 Assessment Critical Thinking Activity Answer Leasing Terms Answers will vary but should reflect an understanding of the term covenant.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Section 33.1 Assessment Legal Skills in Action Maintaining the Premises The grounds surrounding the apartment complex where you live are full of trash. The grass hasn’t been mowed for weeks, and it looks pretty shabby.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Section 33.1 Assessment Legal Skills in Action Maintaining the Premises You’ve mentioned the problem to the landlord, but no action has been taken. Write a petition to circulate among the tenants to ask the landlord to hold a meeting to discuss the difficulty.

Understanding Business and Personal Law The Rental Agreement Section 33.1 Renting a Place to Live Section 33.1 Assessment Legal Skills in Action Answer Maintaining the Premises Petitions will vary, but should include the duties of the landlord in regards to the grounds of the property.

The Rental Agreement End of Section 33.1