Renting & Buying Homes

1. Renting & Buying Homes

2. Renting a Place to Live Chapter 33 Section 33.1 The Rental Agreement Section 33.2 Responsibilities of Landlord and Tenant

3. 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)

4. What You’ll Learn • How to summarize rent control laws (p. 718)

5. 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.

6. Legal Terms • lessee (p. 712) • lessor (p. 712) • tenancy (p. 712) • tenancy for years (p. 713) • periodic tenancy (p.713)

7. Legal Terms • rent day (p. 713) • tenancy at will (p. 714) • tenancy at sufferance (p. 714) • lease (p. 714) • sublease (p. 716)

8. Section Outline Tenancy Types of Tenancies Tenancy for Years Periodic Tenancy Tenancy at Will Tenancy at Sufferance

9. Section Outline The Lease Agreement Terms in a Lease Rent Control

10. Pre-Learning Question What is a tenant?

11. 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.

12. 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.

13. 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

14. 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

15. 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

16. 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

17. Pre-Learning Question What is a tenancy?

18. Types of Tenancies Although they rent from someone else, tenants own an interest in the real estate they lease, called a leasehold estate or tenancy.

19. Types of Tenancies The types of tenancies are • Tenancy for years • Periodic tenancy • Tenancy at will • Tenancy at sufferance

20. 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.

21. Periodic Tenancy 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.

22. Periodic Tenancy One of the parties may terminate this tenancy by giving advance notice to the other party.

23. 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.

24. 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.

25. 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.

26. Tenancy at Sufferance A tenancy at sufferance arises when a tenant doesn’t leave the premises after his or her tenancy has expired.

27. 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.

28. Jill Stunzi signed a lease to rent an apartment for six months. What type of tenancy has she agreed to?

29. ANSWER Tenancy for years.

30. 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?

31. ANSWER Tenancy at will.

32. 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?

33. ANSWER Periodic tenancy.

34. Pre-Learning Question What is a lease agreement?

35. 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.

36. Terms in a Lease The terms of a lease, known as covenants, set forth the rights and duties of the landlord and tenant.

37. 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

38. 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.

39. 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.

40. 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.

41. Assignment and Subletting An assignment of a lease occurs when you transfer the remaining period of time in a lease to someone else.

42. Assignment and Subletting A sublease occurs when you transfer part of the term of lease, but not the remainder of it, to someone else.

43. 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.

44. 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.

45. 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.

46. Pre-Learning Question What is rent control?

47. Rent Control Some large communities have passed rent control laws to keep rent within an affordable range.

48. Rent Control These laws limit what landlords can charge for rental property and also often contain procedures that must be followed before tenants can be evicted.

49. Section 33.1Assessment Reviewing What You Learned • What is the difference between a tenancy for years, a periodic tenancy, and a tenancy at will?

50. Section 33.1Assessment Reviewing What You Learned Answer 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.