Chapter 29Chapter 29

LANDLORD AND TENANTLANDLORD AND TENANT

WHAT IS A LEASE?WHAT IS A LEASE? LeaseLease an agreement in which one party receives an agreement in which one party receives

temporary possession of another’s real property in temporary possession of another’s real property in exchange for rentexchange for rent

RentRent the consideration given in return for temporary the consideration given in return for temporary possessionpossession

LandlordLandlord the lessor or the person who gives the lease the lessor or the person who gives the lease TenantTenant the lessee or the person who receives the the lessee or the person who receives the

leaselease Leasehold estateLeasehold estate the ownership interest of the tenant the ownership interest of the tenant A lease may be oral, but under the statute of frauds, A lease may be oral, but under the statute of frauds,

leases that extend for more than one year must be in leases that extend for more than one year must be in writing or courts may refuse to enforce them.writing or courts may refuse to enforce them.

WHAT TYPES OF LEASEHOLD WHAT TYPES OF LEASEHOLD ESTATES MAY BE CREATED?ESTATES MAY BE CREATED?

There are four types.There are four types.– Periodic TenancyPeriodic Tenancy when a leasehold is for a when a leasehold is for a

renewable period of time with rent due at stated renewable period of time with rent due at stated intervalsintervals

most commonmost common Tenancy from Month to MonthTenancy from Month to Month if the rent is paid if the rent is paid

by the monthby the month

– Tenancy for YearsTenancy for Years is created when a is created when a leasehold is for a definite period of timeleasehold is for a definite period of time

has name even when period for lease is less than has name even when period for lease is less than one yearone year

Tenancy at SufferanceTenancy at Sufferance If a If a tenant remains in tenant remains in possession after the lease possession after the lease has expiredhas expired– landlord may treat tenant landlord may treat tenant

as a trespasseras a trespasser Tenancy at WillTenancy at Will If a party If a party

possesses land with the possesses land with the owner’s permission but owner’s permission but without an agreement as to without an agreement as to the term of the lease or the the term of the lease or the amount of the rentamount of the rent– this leasehold may be this leasehold may be

terminated at any time by terminated at any time by either partyeither party

WHAT ARE THE RIGHTS AND WHAT ARE THE RIGHTS AND DUTIES OF A TENANT?DUTIES OF A TENANT?

The right to possessionThe right to possession– the tenant has the right to the possession of the real the tenant has the right to the possession of the real

property starting at the time agreed upon in the property starting at the time agreed upon in the leaselease

– evictioneviction if the landlord removes the tenant from if the landlord removes the tenant from possession of all the real propertypossession of all the real property

– partial evictionpartial eviction depriving the tenant of the depriving the tenant of the possession of only one partpossession of only one part

– constructive evictionconstructive eviction when property becomes so when property becomes so unfit for habitation through fault of landlord that the unfit for habitation through fault of landlord that the tenant is forced to abandon ittenant is forced to abandon it

The right to the use of the propertyThe right to the use of the property– The tenant is allowed to use the leased property in the The tenant is allowed to use the leased property in the

manner specified in the lease. If a use is not stated in manner specified in the lease. If a use is not stated in the lease, the tenant my use the property for any the lease, the tenant my use the property for any purpose for which it is designed or customarily usedpurpose for which it is designed or customarily used

The duty to pay rentThe duty to pay rent– The tenant’s most important duty is to pay the agreed The tenant’s most important duty is to pay the agreed

upon rent when it is dueupon rent when it is due The duty to take care of the propertyThe duty to take care of the property

– duty of reasonable careduty of reasonable care a tenant must take a tenant must take reasonable care of the leased property and return it in reasonable care of the leased property and return it in the same condition it was in when the lease beganthe same condition it was in when the lease began

The right to assign the lease or to subletThe right to assign the lease or to sublet– a tenant may assign the lease or may sublet the premisesa tenant may assign the lease or may sublet the premises– assignment of leaseassignment of lease takes place when the tenant transfers his or takes place when the tenant transfers his or

her entire interest in the lease to a third personher entire interest in the lease to a third person– sublettingsubletting tenant’s transferring part of interest to another tenant’s transferring part of interest to another

leases all of the property to a third person for a period of time that is leases all of the property to a third person for a period of time that is less than the term remaining on the leaseless than the term remaining on the lease

or leases part of the property to a third person for part or all of the or leases part of the property to a third person for part or all of the term remainingterm remaining

The duty to satisfy conditionsThe duty to satisfy conditions– leases contain two kinds of duties a tenant must fulfillleases contain two kinds of duties a tenant must fulfill

lease covenantlease covenant a promise made by a tenant which, if violated, allows a promise made by a tenant which, if violated, allows the landlord to sue for damages while the lease remains in effectthe landlord to sue for damages while the lease remains in effect

lease conditionlease condition if violated, allows the landlord to terminate the lease if violated, allows the landlord to terminate the lease and evict the tenantand evict the tenant

WHAT ARE THE RIGHTS AND WHAT ARE THE RIGHTS AND DUTIES OF A LANDLORD?DUTIES OF A LANDLORD?

The right to rentThe right to rent– The landlord’s primary right is to the rent agreed The landlord’s primary right is to the rent agreed

upon in the leaseupon in the lease– If the tenant fails to pay the rent, the landlord may If the tenant fails to pay the rent, the landlord may

take legal action to recover the rent and sue to evict take legal action to recover the rent and sue to evict the tenantthe tenant

The right to regain the realty and fixturesThe right to regain the realty and fixtures– At the end of the lease term, the lessor is entitled to At the end of the lease term, the lessor is entitled to

regain possession of the real property, such as any regain possession of the real property, such as any fixtures added by the tenantfixtures added by the tenant

The duty to maintain the The duty to maintain the premisespremises– The duty to maintain the The duty to maintain the

leased property generally leased property generally falls on the tenant. falls on the tenant. There are exceptions.There are exceptions.

The duty to pay taxesThe duty to pay taxes– In the absence of In the absence of

contrary agreement, the contrary agreement, the landlord pays all the landlord pays all the property taxes and property taxes and assessments on the lease assessments on the lease property.property.

– Long-term leases of Long-term leases of commercial property commercial property commonly provide that commonly provide that the tenant will pay such the tenant will pay such taxes and assessmentstaxes and assessments

HOW CAN A LEASE BE HOW CAN A LEASE BE TERMINATED?TERMINATED?

A lease can be terminated in several ways:A lease can be terminated in several ways:– the end of a definite period of timethe end of a definite period of time

neither the lessor nor the lesse is required to give neither the lessor nor the lesse is required to give advance notice before terminationadvance notice before termination

– by agreement before the expiration of the termby agreement before the expiration of the term In a periodic tenancy, the party seeking to In a periodic tenancy, the party seeking to

terminate must notify the other party. There is terminate must notify the other party. There is usually a requirement in the lease that this notice usually a requirement in the lease that this notice be in writing and be given so many days before the be in writing and be given so many days before the end of the lease period.end of the lease period.