Guidelines for Landlord and Tenant Responsibilities: Residential Lease

The conditions of a Landlords lease agreement are designed to be balanced to avoid disputes but they are also designed to protect and observe state legislation for both the landlord and tenant.

The Landlords Responsibilities

Most U.S. States have in place laws and codes for people to follow who wish to lease or rent-out residential property; there exists an implied guarantee that the premises offered as rental accommodation is in habitable condition as a minimum prerequisite. This means that the property is safe for a family to use having working and unhindered sanitation, water and electricity supply making the premises suitable as a minimum standard to people to rent as a home. The implied guarantee that is enforced by the state is a responsibility for the landlord to maintain and repair the property during the lifetime of the lease agreement. The state housing related codes actually define a minimum standard for the landlord to follow in order to be continuously compliant. For some properties this can be expensive especially if a building is dilapidated or has historical interest and is a protected or listed building. In any event the landlord has to set aside a budget for not only remedial repairs caused by the fair wear and tear of people renting but also vandalism, weather damage and general acts of God. Those costs and the cost of administration with an “all risks property and public liability insurance policy” are bottom line costs that are factored into the monthly rental price.

The Tenants Responsibilities

The responsibilities of the tenant are rather more simple but crucial for the success of gaining an income for the landlord and a stable home for the tenant especially when the landlord you are renting or leasing from has a fair, reasonable attitude and approach towards property and people management. The rules of engagement are carefully laid out in the lease agreement and are namely: regular and timely payment of rent which is usually at monthly intervals, reasonable and careful use of the premises and a respectful and tolerant approach towards neighbors.

Because tenants are often moving into a new neighborhood they are frequently unaware about the reputation of the area and especially the prospective neighbors and landlord. It is well worth making discreet enquires in the immediate neighborhood to establish if there are commonly known issues that cause people to move-on quickly.

Before a tenant can move into the new home the landlord will need to retain a deposit which is often a months rent in advance and it can be as much as six months advance rent for those who do not have an past references, employment or a residential leasing history and in some cases higher deposits are required if a tenant has a pet or waterbed. The deposit helps to reduce the landlords range of risks such as failure to pay the rent and violations to the terms of the lease agreement that include damage to the property; perhaps if a waterbed bursts the landlord would become liable to refurbish part of a neighbors property.

The lease agreement deposit is however protected by State Laws which can impose a heavy fine on a landlord who misuses or fails to return the money without proper notification and management. In the event that the deposit is not returned in full the landlord has to give a formal written explanation about the costs and reasons involved in the deductions. In many states landlords are deterred from withholding deposits without very good reasons by state laws that charge high fines to rouge landlords or landlords who fail to observe state legislation and codes of conduct.

For example in some states the security deposit must be kept in an bank deposit account so that it accrues interest for the tenants and the deposit cannot be used to pay rent the final months rent. And the deposit cannot be retained indefinitely; state law defines the maximum duration which means that people who are in the business of renting or leasing out residential property are to a large extent regulated by the states legislature. Which by its very nature changes and evolves constantly so it is well worth checking before getting involved with renting a family home especially if you have children, pets or dependents.

Lease Termination Agreement

It is often the norm for a landlord and tenant to enter into a residential lease agreement for a fixed length of time instead of having an open-ended agreement that might be rendered obsolete as state legislation changes and continues to evolve. With a fixed term agreement the landlord and tenant may mutually agree to terminate the lease agreement prematurely; in this circumstance both parties need to document and sign the Lease Termination Agreement that explains the reasons why the contract has been canceled to avoid any future misunderstandings and potential legal conflicts.