07.10
The landlord and tenant branch of most local courts is often overloaded with cases, usually pertaining to some part of the lease or rental agreement between the two parties. The more specific the agreement, the easier it will be for each case to be decided or, better yet, worked out between the landlord and tenant. To that end, every lease or rental agreement should contain the following terms or provisions, or some derivative thereof.
Duration:
The duration of the lease is very important. Many lease agreements are either for six months or one year, and are renewable upon the expiration of the duration. Many rental agreements are month-to-month, meaning that they can be terminated at any time, with the requisite notice. Holdovers after the expiration of the lease are generally not allowed.
Deposit:
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.
Rental Amount:
The rental amount defines how much rent should be paid monthly. Additionally, it will most likely define the day of the month by which the rent should be paid and if there is any grace period. Finally, the rent provision should define any late fees.
Utilities:
The lease or rental agreement should enumerate who pays what utilities. Utilities can be quite costly, especially those for electricity and/or gas. Often times, the utility payments are the “make-or-break” element of the agreement. Past utility payments should be utilized by the tenant to determine whether the cost of renting the property is affordable.
Use/Occupancy Terms:
The tenant can’t have free reign to do with the property what he or she wishes. The agreement should expressly state any restrictions on the use or occupancy of the premises. For example, if only one person can reside there, the lease should state that. If a certain type of television network or cable company must be used, then that should be outlined in the agreement. The point is not to leave any questions as to what can and can’t be done, within reason. Both parties will be better off with a more specific provision on the terms of use.
Right of Landlord to Enter the Premises:
In some instances, the landlord needs to be able to enter the premises. For example, if the landlord needs to show the property to prospective tenants, or if the building is undergoing a repair where each unit needs to be specifically inspected, then the landlord may need to come onto the property. The right to enter provision must state how much notice and what kind of notice should be given to the tenant prior to the landlord entering.
Maintenance Obligations:
Who will maintain the premises? This can be a blanket statement that the landlord or tenant is obligated to repair things when they break down. Or it could be specific (for example, the landlord repairs any appliances, but the tenant repairs any aesthetics). In any event, maintenance can become quite expensive, especially in older buildings, so be sure each party’s obligations are specifically enumerated.
Remedies upon Default:
People often break their lease or rental agreement. Or they don’t do something they are supposed to do under the agreement. It happens every day all over the country. That is why we have leases and rental agreements in the first place, because they outline each party’s rights and responsibilities and what should be done in the event that the parties don’t respect the rights and responsibilities. Naturally then, the agreement needs to outline what each party can do in the event of default or breach.
Generally speaking, the above provisions must be included in every lease or rental agreement. However, they aren’t the only provisions that must be included in the agreement. What each agreement contains will depend on the facts and circumstances of the particular parties and the property in question, but it is important to know the basics of where to start.
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.