Presentation on theme: "Renting or Owning??? Principles of Law Mrs. Pollison."— Presentation transcript:
Renting or Owning??? Principles of Law Mrs. Pollison
Landlord-Tenant Relationship Landlord – owner who rents real property to someone else. Lease – contract between tenant and landlord Lessee – tenant Lessor – landlord
Types of Tenancy – tenants interest in real estate they lease. Tenancy for years: Definite or fixed period of time May be required in writing Periodic tenancy: Continues for successive, fixed periods of time Notice required to terminate Tenancy at will: Indefinite period of time No writing required Notice required to terminate Tenancy at sufferance: Illegal occupancy Tenant does not leave when tenancy expires Must pay rent!
The Lease Agreement Written agreement between lessor and lessee General rules of contract apply Terms of lease – rights & duties of landlord and tenant Security deposit – often equals one month’s rent; returned at end of lease with interest if no damage; landlords often require 1 st & last month’s rent at contract signing Assignment – transfer remaining period of time in lease to someone else Subletting – transfer of part of term of lease, not remainder, to someone else Option to renew – right to renew for one or more additional periods
Landlord duties and obligations Refrain from discrimination Maintain the premises Transfer peaceful possession
Tenant’s duties and obligations Abide by terms of lease Avoid waste Return fixtures
Eviction!! Landlord deprives tenant of the possession of the premises! Reasons: Not paying rent Staying after lease expires Damaging the premises Violating provisions in the lease Constructive eviction: landlord breaches duty (no heat, no electricity) Tenant may terminate lease and leave