The landlord and tenant relationship is often fraught with turmoil, especially when one violates the lease or rental agreement. In order to help manage expectations in the event of a default by either party, make sure you are familiar with the following terminology.
Duration:
The duration provision will define how long the lease or rental agreement will be enforceable. Most leases are for a defined period of time, generally six months or one year. Rental agreements are usually month-to-month, and they can be terminated upon the expiration of each month, as long as the tenant gives proper notice.
Deposit on Security:
Many landlord and tenant disputes occur because of the security deposit. The purpose of the security deposit is to allow the landlord to have a reserve in the event that the tenant causes damage to the property. A typical security deposit will be equal to the first and last months’ rent.
Monthly Rent:
The rent provision should state what the amount, the due date, any grace period, and the amount of any late fee. Look for unreasonable late fees or grace periods.
Utilities:
Someone has to pay for the electric, gas, and water bills. The lease or rental agreement needs to specifically state who is responsible for these utilities. Most agreements contain a provision whereby the landlord or the tenant is responsible for all utilities. But some agreements divide them in half, or state that one party is responsible for a specific utility. But this is an important provision, since utilities can often be several hundred or even thousands of dollars per month.
Use and Occupancy:
Both residential and commercial leases will generally contain certain restrictions on the use and occupancy of the property. An example of a use restriction would be if the tenant cannot have pets on the property. Additionally, most residential leases contain restrictions on loud noise or music. Finally, the lease may limit specific types of property or items. For example, the agreement may state that waterbeds are not allowed.
Right to Enter the Premises:
The landlord will most likely have the right to enter the premises, either to inspect or do some other at. The rights of the landlord, and also of the tenant, should be specifically outlined. That is to say, the who, what, where, when, why, and how of the landlord coming onto the property should all be set out in detail.
Maintenance:
Maintenance of the property can be a big issue, especially when the building is old or contains expensive appliances. The maintenance provision should answer the questions of who will be responsible for maintenance and in what situations.
Default and Remedies:
What constitutes default? What happens in the event of default? How much and what type of notice does the landlord have to give to the tenant in the event of default before initiating proceedings in court? What are the tenant’s rights in the event of the landlord fails in his or her obligations? These are questions that must be answered in the default and remedies sections of the lease agreement.
Leases and rental agreements are living, breathing documents. While the above provisions are generally included in every lease, there are other provisions which are jus as important. Whether you are landlord or tenant, you should thoroughly review every word of the lease and, if necessary, seek the aid of an experienced attorney to help you interpret each paragraph.
Landlord-tenant laws are both complex and specific to each State. If you need a Maryland real estate attorney or Virginia real estate attorney, we are here to help.