What Is A Lease Agreement?
A lease agreement is what is commonly referred to as a rental agreement. In general terms, it is the contract between a landlord and the individual who is renting a space (known as the tenant) with regard to the apartment or home that is not owned by the tenant or customer. A lease agreement is an essential document only for the duration of the rental period for which it is valid. A lease agreement identifies all parties involved in the rental agreement, as well as the rights and obligations of those parties. a) Lease Agreement Basics The lease agreement serves two basic purposes: First, it is a way to ensure that the tenant has a place to live and the landlord has the confidence that rent will be paid by the tenant. Second, it provides an accurate summary of the rights and obligations of both parties (landlord and tenant) so that everyone is aware of his or her responsibilities. It also prevents possible revocation of the lease . For instance, if a tenant is late on the payment of rent, the lease provides the specific timeline for when rent is due, which helps the landlord determine whether the tenant has violated the lease agreement. This lets the landlord know where their expectations were not met. b) The Tenant’s Obligations A tenant has a wide range of obligations with regard to the lease agreement. Some examples may include: The tenant should also familiarize themselves with anti-discrimination and fair housing laws in their state and local government. They should also know the difference between a lease and a rental agreement. c) The Landlord’s Obligations The landlord also has obligations with regard to the lease agreement, including: Most importantly, the landlord should familiarize themselves with local laws. In certain areas, a landlord may be required to provide a specific amount of notice before entering the apartment or house in question. This is in contrast to areas where there is no law require this notice. Additionally, in some areas, landlords may be limited about the amount of rent that they can charge for specific properties.
Types Of Landlord Breaches
Landlords are strictly bound to the terms of a lease agreement, and after a signing, they must honor its terms. Breach occurs when a landlord fails to do so and subsequently harms the tenant in any way. Below is a list of some of the most common forms of landlord breach:
Failure to Maintain the Rental
According to a Federal Trade Commission article, a residential landlord must make all necessary repairs to a rental unit "in order for clothes to get clean, food to get cooked and families to be safe." California law also requires landlords to "furnish fit premises" (California Civil Code Section 1941). This means that the landlord must keep the bathrooms and kitchens "in good working order" and "take reasonable steps to repair the roof and exterior walls so that the rental unit is weatherproof."
Generally speaking, if a part of a unit that is under lock and key, such as a heater, is not functioning correctly, it is the landlord’s responsibility to make repairs. However, if the space is not secure or contains holes or leakages, the landlord is responsible to supply security or fill the holes and leakages. This applies to every other aspects of a rental, as long as it is included in the lease agreement, as well.
Unlawful Entry
As a general rule, the landlord should not enter the rental unit without giving proper notice. However, this rule has some exceptions, including emergencies and rent payment collection. To be safe, if you are entering the unit when the tenant is not there, give the tenant a quick phone call to alert them. Some lease agreements specifically spell out a timeline for landlord access to a rental, and some set parameters for an acceptable reason for entry, such as for monthly maintenance.
Health and Safety Issues
If mold begins growing in the property, the landlord is responsible for remediation. Other major issues including pests must be inspected and possibly addressed as soon as possible, and in some cases within a certain period of time that has been agreed upon in the lease agreement. In fact, state laws require the landlord to maintain safe and livable conditions in a rental property. This makes mold and pest infestations extremely serious issues that must be addressed in a timely manner.
Legal Rights Of Tenants
Eviction Actions in California require a landlord to utilize and follow the rules set up by California statute. In California, for a residential lease, some of the important rights for a tenant include:
- The landlord must be in "substantial compliance" with certain safety and health laws and regulations of the rental housing. (Civil Code Section 1941.1) What does that mean? If you have a hot plate for a stove, no outside vent for a dryer, or the toilet does not work, there are health and safety violations.
- The furnished property must be kept in good repair and clean and safe. (Civil Code Section 1941)
- The tenant is entitled to quiet enjoyment of the property. (Civil Code Section 1927). (Quiet enjoyment means that you can enjoy the property and not be invaded by the landlord.)
- Landlord cannot exclude tenant from the property. (Civil Code Section 789.8)
- Landlord has an obligation to provide habitable premises. (Civil Code Sections 1941 and 1941.1)
In California, a landlord has an obligation to provide housing where the property is habitable. Habitable means that the landlord has complied with all local and state laws that materially affect health and safety (Civil Code Section 1941). In a previous post, I discussed what a landlord needs to do under a commercial lease (see A Commercial Lease: What is Habitable and What Can I Do about It?).
In California there is a quick remedy for a tenant against a landlord that is not complying with a lease. Not only does a tenant have an obligation not to pay rent, the tenant can get three months of rent paid back as a penalty for the landlord’s breach of the lease. Under California Civil Code Section 1942 if the landlord breaches the lease and fails to remedy the condition within 30 days the tenant is permitted to deduct from his rent whatever amounts are reasonably necessary to remedy the defects. It also allows the tenant to recover a penalty. This penalty is equal to the amount for one month’s rent for each month that wrongdoing continues, which is limited to a maximum of three months.
What To Do When A Breach Occurs
When you suspect your landlord has breached your lease agreement, there are several steps you should take to protect your rights and seek a resolution. These steps will guide you in addressing the issue and ultimately serve as evidence of a breach if the problem is not resolved and you need legal recourse.
Document the Breach
Make sure to document all actions that may constitute a breach of your lease agreement. This could include a lack of repair of mold or broken pipes that were the landlord’s responsibility, as well as interference with your ability to enjoy the property or other actions. Make sure to note the date and time of any incidents, as well as the names of any witnesses you may have.
Notify the Landlord
Next, you should send your landlord a letter that explains your concerns in writing. If you have already notified your landlord verbally, make sure to document that communication, too, such as in a text message, email or voicemail. There’s no guarantee that a property owner will respond to this letter, but it is an important step in the process to follow.
Seek Legal Advice
You also have the option of contacting a lawyer to discuss your situation. This is particularly important if you think the issue warrants legal action. Even if the problem seems relatively minor to you, it’s best to have clarity about your options before making a decision on the course of action you wish to pursue. A real estate attorney may be able to provide advice about how to resolve the issue through informal means or send your landlord a letter requesting a resolution.
Tenants May Seek Remedies
A tenant can employ several remedies when a landlord is found to be in breach of the lease agreement. Among these are the repair and deduct remedy, withholding rent, and ultimately legal action against the landlord such as injunctive relief, retaliation defenses and withhold damages.
Repair and Deduct Options
The repair and deduct remedy allows tenants to repair defective premises conditions at their own expense, and deduct the costs from their future rent. In an Indiana case wherein a tenant was denied the right to repair and deduct, it was held that "a landlord may implicitly waive his right to object to the remedy sought by the tenant by his failure to assert a valid reason for doing so." Varnadore v. Lawrence, 490 N.E.2d 162 (Ind. App. 1986), citing Stump v. Weiss, 130 Ind. App. 556, 161 N.E.2d 257 (1959). The Indiana Court of Appeals stated in a recent opinion that an important factor in determining whether a landlord has breached the lease agreement and whether a tenant may properly repair and deduct is whether the tenant has substantially performed under the lease terms. Tomoyasu v. Liberty Park Apartments , 585 N.E.2d 1076 (Ind. App. 1992).
Withholding Rent
Indiana courts will allow a tenant to withhold rent for a landlord’s failure to make repairs despite what may be stated in the lease. This can be accomplished by filing an affidavit to the county treasurer who will then hold the rent until the issues between the tenant and landlord are resolved. In Indiana, tenants may utilize the statutes and collect in a full amount against the landlord (rental payments plus tenant damages).
Legal Action
Tenants may bring an action for damages against a landlord for acts and omissions based on breach of contract, negligence and other theories. In addition, tenants may seek equitable relief from a court.
Injunctive Relief
The most common form of injunctive relief is specific performance. Under this form of relief, a court may require a landlord to perform its obligations under a lease including the repair of specified defects. Injunctions are available against a tenant as well as landlords.
Preventing Future Breaches
If a breach has occurred, it is now time to put your attention on how to remedy the situation. However, it is generally far more preferable to focus on preventing problems before they arise. The best way to do that is to make sure everyone understands their rights and obligations under the lease. Having a clear and well drafted lease will go a long way toward avoiding the issues that cause a breach. A good lease will specifically outline the process necessary to address issues or concerns with either the landlord or other tenants. A good lease will require clear and complete notices outlining the issues. By following the agreed upon avenues, all parties can agree to the problems before things escalate into confrontation.
Another important tactic in avoiding potential breach issues is to make sure tenants feel comfortable talking to the landlord. Tenants can be nervous about bringing up issues with the landlord and are very often concerned that if they raise an issue with the landlord, it will cause the landlord to retaliate by being hostile, or more problems will arise out of the one they were addressing. Tenants should be told not to be afraid to bring up any issues with the landlord or property manager. These types of discussions can often be dealt with in a quick and cordial manner which helps to build good landlord/tenant relationships and avoid more serious issues.
If there is a dispute between the landlord and tenant over a performed service, such as a landscaping job or replaced window, a walk around tour with the complaints addressed sometimes goes a long way. This way the tenant and landlord can address the issue and come to an agreement before any serious animosity arises.
Get Legal Assistance
Knowing When to Seek Legal Help
While pursuing a breach of lease agreement claim against your landlord is often best handled with an attorney, not all violations require legal action. In many cases, violations can be resolved informally between the landlord and the tenants. However, it is recommended that tenants who experience grievous harm resulting from a breach of lease agreement should consult with a qualified attorney.
Other factors that may increase the likelihood that pursuing a breach of lease agreement claim is warranted include:
If any of these circumstances apply to your situation, you should consider consulting with a qualified lawyer who specializes in landlord-tenant law .
If a breach of lease agreement results in damages to you, you may be entitled to remedy damages. Remedies can take many different forms, including monetary damages. Generally, these damages are designed to compensate and mitigate a tenant’s loss and need to be quantifiable. As mentioned above, certain lease violations may result in the landlord losing her security deposit, but usually the damage is more than monetary. Therefore, remedies may also involve court orders, injunctive relief, or even in some cases, termination of the lease.