The Rental Game: What Are The Rules?

by M. Anthony Carr

What do you do when the dishwasher has spewed soapy water across the kitchen floor and leaked down on your neighbor below? Who's responsible? The landlord or the tenant? Across the country, tenant law differs as much as the geography. Nevertheless, some principles remain the same regardless of the local nuances of tenant and landlord rights. One of the first places to visit is the landlord/tenant area posted online by Cornell University's Law School.

Commonly speaking (because the biggest problem I find with legal websites is that they don't speak in such basic terms) there are certain rights reserved for the landlord and certain rights reserved for the tenant. Tenants, says Cornell, have "a property interest in the land...for a given period of time." The lease reflects the length of the landlord/tenant agreement and what the tenant is allowed to do with the property. "The lease," says Cornell, though not historically or strictly a contract, may be subject to concepts embodied in contract law."

"Basic to all leases is the implied covenant of quiet enjoyment. This covenant ensures the tenant that his possession will not be disturbed by someone with a superior legal title to the land including the landlord," according to the site. Now, I bring Cornell's Web site to the forefront as it is an official sounding, and at most of all, reputable place, for all of us to seek out what the law says. However, a site based in Cleveland puts the responsibilities of landlords and tenants into simple language.

NeighborhoodLink is a product of Levin College of Urban Affairs, a part of Cleveland State University. An easily navigable site with plenty of information on rental laws in Cleveland, the site also includes form letters for tenants who must deal with unresponsive landlords. (This is a very cool part of the site -- check it out.

Nevertheless, the lists of landlord and tenant duties found here give a simple approach to who's responsible for what in a lease agreement and are generally relevant across the country.

Here are a few sample landlord duties from the site:

• Keep the premises fit and habitable.
• Keep the common areas safe.
• Comply with building, housing, health, and safety codes.
• Keep all systems in good working order -- plumbing, electrical, heating, etc.
• Maintain all required appliances and equipment.
• Provide, in most cases, running water and reasonable amounts of hot water and heat.
• Provide garbage cans and trash removal.
• Give adequate notice, at least 24 hours in some jurisdictions, before entering a tenant's unit -- except in emergencies. Enter only at reasonable times.

And what about tenants? The school says that tenants have an obligation to:

• Keep the premises safe and sanitary.
• Dispose of rubbish in the proper manner.
• Keep the plumbing fixtures as clean as their condition permits.
• Use electrical and plumbing fixtures properly.
• Comply with housing, health, and safety codes that apply to tenants.
• Refrain from damaging the premises and keep guests from causing damage.
• Maintain appliances supplied by the landlord in good working order.
• Permit landlord to enter the dwelling unit if the request is reasonable and proper notice is given.
• Comply with state or municipal drug laws in connection with the premises and require house-hold members and guests to do likewise.

Oh -- who is responsible for that leaky dishwasher? Most likely, the tenant has an obligation to limit the damage by shutting off the machine and drying the floor. The landlord who supplied the appliance should have it repaired or replaced as soon as possible.

Keep in mind, tenant laws differ by jurisdiction. For details regarding your area, speak with local realty brokers, attorneys, and housing offices.

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For more information on real estate investing, resources and news, check out my Commonsense Real Estate Blog at http://commonsenserealestate.blogspot.com/.

Originally Published: May 4, 2001

Landlords Have Rights When Tenant Breaks Lease

QUESTION:

I am a real estate investor in the state of Colorado that purchases single family homes for rent. My question concerns my growing frustration over tenants that break their lease. Typically, we only make a lease for one year periods. The issue typically arises when the tenant finds a home and enters into a purchase contract, then sends a notice to me that they intend to break their lease sometimes within 3-4 months of signing the lease! My question actually has more then one part.

• What can I do to discourage this from happening? (The obvious issues are wear and tear and the expense of finding another tenant).
• What if I have negotiated terms with the tenant for a reduced rate in lieu of a multi-year lease and the same circumstances arise?
• Are there legal clauses that can be inserted into the contract lease that we can rely on for compensation? (It seems that collecting money from a tenant who is moving would be difficult to impossible).
• Are renters able to break a legal contract with impunity?
• Who would I contact in my state for guidance?

There are probably others, but you get the idea. Any advice would be greatly appreciated.

K. Bryant
Colorado Springs, CO

ANSWER:

You have issues, man! But, fortunately, you’re covered by the law. A good resource for landlords (investors) is http://www.findlaw.com/, (in particular for use: http://realestate.findlaw.com/). Here you’ll be able to get a handle on your rights and responsibilities as a landlord and what tenants are responsible as well.

First of all, tenants (and landlords) need to understand that the lease isn’t just a fly-by-night document. It’s a contract, enforceable by the courts. Yes, you can take their deposit money (but check your state’s Landlord/Tenant Act for particulars.) But as a landlord, you have given up the right of possession of the unit to the renters and they have agreed to pay you for that assignment. FindLaw.com says:

“The lease does not terminate just because the tenant moves out. The lease is a contract in which the tenant promises to pay the landlord for the right to possess the premises whether the tenant actually lives there or not.”

Now, what you want to do with the contract is up to you. If you consider that you’re talking thousands of dollars per year in rental dollars, then it would be worth a visit to the courthouse to force some of your home-buying tenants to pay up on the way out. In the D.C. market, we take that into account when renters want to become buyers and I’ve seen some sellers pay off the lease as part of the sales contract.

Make sure the tenants understand what they’re signing when you put the Deed of Lease under their noses. They may be willing to walk because you cave and say, “Okay…I guess you can go.” Rather than: “Sure, you can get out of it, as soon as you find a sublease or pay up for the remainder of your ‘legally-binding agreement’ called a lease.” There’s no need to get nasty. Simply point it to them when they sign it that it’s legally-binding and that you expect them to fulfill it.