Section 33.1
The Rental Agreement
Renting
a
Place
Section
33.1
The
Rental
Agreement
Chapter 33
to Live
Section 33.1
The Rental Agreement
Section 33.2
Responsibilities of Landlord and Tenant
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
What You’ll Learn
How to define the main types of tenancies
available to persons who rent real property
(p. 712)
How to describe some of the common
covenants found in a lease (p. 714)
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
What You’ll Learn
How to summarize rent control laws
(p. 718)
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Why It’s Important
Knowing all you can about rental agreements
and the types of tenancies will help you
choose a place to live and know how to
address disputes that may arise.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Legal Terms
lessee (p. 712)
lessor (p. 712)
tenancy (p. 712)
tenancy for years (p. 713)
periodic tenancy (p.713)
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Legal Terms
rent day (p. 713)
tenancy at will (p. 714)
tenancy at sufferance (p. 714)
lease (p. 714)
sublease (p. 716)
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Section Outline
Tenancy
Types of Tenancies
Tenancy for Years
Periodic Tenancy
Tenancy at Will
Tenancy at Sufferance
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Section Outline
The Lease Agreement
Terms in a Lease
Rent Control
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Pre-Learning Question
What is a tenant?
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Tenancy
If you rent real property, such as an
apartment or house, you are a
tenant.
If you own real property and rent it
to someone else, you are a
landlord.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Tenancy
The contract between a tenant and a
landlord is called a lease.
In a lease, the tenant is known as the
lessee, and the landlord is the lessor.
Understanding Business and Personal Law
Renting a Place to Live
33.1 33.1 The Rental Agreement
Section
What to Look for
in Selecting an Apartment
Location
 Near school, work
 Near church, mosque,
synagogue
 Near shopping
 Near public
transportation
 Near recreation: parks,
museums
Understanding Business and Personal Law
Renting a Place to Live
33.1 33.1 The Rental Agreement
Section
What to Look for
in Selecting an Apartment
Finances
 Amount of monthly rent
 Amount of security
deposit
 Cost of utilities
 Length of lease
Understanding Business and Personal Law
Renting a Place to Live
33.1 33.1 The Rental Agreement
Section
What to Look for
in Selecting an Apartment
Building
 Condition of building and
grounds
 Parking facilities
 Recreation on premises
 Security system
 Condition of hallways,
stairs, and elevators
 Access to mailboxes
Understanding Business and Personal Law
Renting a Place to Live
33.1 33.1 The Rental Agreement
Section
What to Look for
in Selecting an Apartment
Layout and Facilities
 Size and condition of unit
 Type and controls of heating
and cooling systems
 Plumbing and water
pressure
 Type and condition of
appliances
 Condition of doors, locks,
windows, closets, and floors
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Pre-Learning Question
What is a tenancy?
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Types of Tenancies
Although they rent from someone
else, tenants own an interest in the
real estate they lease, called a
leasehold estate or tenancy.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Types of Tenancies
The types of tenancies are
Tenancy for years
Periodic tenancy
Tenancy at will
Tenancy at sufferance
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Tenancy for Years
A tenancy for years is the right to
occupy property for a definite or fixed
period of time.
It may be for one week or 99 years, as
long as the time period is definite.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Periodic Tenancy
A periodic tenancy, also called a
tenancy from year to year (or month to
month, or week to week), is a tenancy
that continues for successive fixed
periods.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Periodic Tenancy
One of the parties may terminate this
tenancy by giving advance notice to
the other party.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Periodic Tenancy
The notice requirement differs from
state to state, but it is often the period
between rent days.
The rent day is the day on which the
rent is due.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Tenancy at Will
A tenancy at will is an interest in real
property that continues for an
indefinite period of time.
No written agreement is required to
create this tenancy.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Tenancy at Will
It is terminated when either the
landlord or the tenant gives the notice
required by state laws, which is
usually 30 days.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Tenancy at Sufferance
A tenancy at sufferance arises when
a tenant doesn’t leave the premises
after his or her tenancy has expired.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Tenancy at Sufferance
This situation often occurs when a
tenancy for years expires or when a
tenancy at will has been properly
terminated by the landlord but the
tenant remains in possession.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Jill Stunzi signed a lease to rent an
apartment for six months. What type
of tenancy has she agreed to?
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
ANSWER
Tenancy for years.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Jamal Youngston has an oral
agreement with Mary O’Donnell to
rent her basement apartment until he
graduates from college. What type of
tenancy has he agreed to?
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
ANSWER
Tenancy at will.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Marcus Kennedy is a contract painter
and often works for weeks on end
away from home. During these times
he often rents a hotel room from week
to week. What type of tenancy is he
agreeing to?
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
ANSWER
Periodic tenancy.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Pre-Learning Question
What is a lease agreement?
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
The Lease Agreement
A written agreement between a lessor
and a lessee is called a lease. The
lease creates the landlord-tenant
relationship. It provides the tenant with
exclusive possession and control of
the real property of the landlord.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Terms in a Lease
The terms of a lease, known as
covenants, set forth the rights and
duties of the landlord and tenant.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Terms in a Lease
Common terms, or covenants, found
in a lease include
Security deposit
Decoration and repairs
Assignment and subletting
Option to renew or to purchase
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Security Deposit
Landlords often require you to pay a
security deposit and the last month’s
rent at the beginning of a tenancy in
order to secure the payment of rent or
repairs for damages to the property.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Decoration and Repairs
The landlord has no obligation to
decorate the premises, unless the
lease says so or it is required by
statute or local ordinance.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Decoration and Repairs
However, the landlord must make any
repairs necessary to keep the
premises fit for living. This includes
repairs such as fixing a leaky roof or a
broken furnace.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Assignment and Subletting
An assignment of a lease occurs
when you transfer the remaining
period of time in a lease to someone
else.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Assignment and Subletting
A sublease occurs when you transfer
part of the term of lease, but not the
remainder of it, to someone else.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Assignment and Subletting
If a landlord doesn’t want a tenant to
assign or sublet the property, a
covenant in the lease must say that.
Otherwise, a tenant may either assign
or sublet the property to someone
else.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Option to Renew or to Purchase
The option to renew the lease gives
renters the right to a new lease, under
the same terms, for an additional
period.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Option to Renew or to Purchase
The option to purchase the property is
an agreement by the lessor to sell the
property to the lessee for a stated
price.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Pre-Learning Question
What is rent control?
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Rent Control
Some large communities have passed
rent control laws to keep rent within an
affordable range.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Rent Control
These laws limit what landlords can
charge for rental property and also
often contain procedures that must be
followed before tenants can be
evicted.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Section 33.1 Assessment
Reviewing What You Learned
1. What is the difference between a
tenancy for years, a periodic
tenancy, and a tenancy at will?
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Section 33.1 Assessment
Reviewing What You Learned
Answer
A tenancy for years is for a fixed time
period. A periodic tenancy continues for
successive periods until one of the parities
ends it by giving proper notice.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Section 33.1 Assessment
Reviewing What You Learned
Answer
A tenancy at will is for an indefinite time
period and is often an oral agreement.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Section 33.1 Assessment
Reviewing What You Learned
2. Name the common covenants found
in a lease.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Section 33.1 Assessment
Reviewing What You Learned
Answer
Security deposit, decoration and repairs,
assignment and subletting, and option to
renew or to purchase.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Section 33.1 Assessment
Reviewing What You Learned
3. Explain rent control laws.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Section 33.1 Assessment
Reviewing What You Learned
Answer
Rent control laws exist to keep rents within
an affordable range. The laws limit the
amount of rent the landlords may charge
for rental property.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Section 33.1 Assessment
Reviewing What You Learned
Answer
They often contain procedures that must
be followed before tenants can be evicted.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Section 33.1 Assessment
Critical Thinking Activity
Leasing Terms
Imagine you are ready to rent a place to
live. Make a list of covenants you would
want in your lease, and explain why you
would want these covenants.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Section 33.1 Assessment
Critical Thinking Activity Answer
Leasing Terms
Answers will vary, but should reflect an
understanding of the term covenant.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Section 33.1 Assessment
Legal Skills in Action
Maintaining the Premises
The grounds surrounding the apartment
complex where you live are full of trash.
The grass hasn’t been mowed for weeks,
and it looks pretty shabby.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Section 33.1 Assessment
Legal Skills in Action
Maintaining the Premises
You’ve mentioned the problem to the
landlord, but no action has been taken.
Write a petition to circulate among the
tenants to ask the landlord to hold a
meeting to discuss the difficulty.
Understanding Business and Personal Law
Renting a Place to Live
Section 33.1 The Rental Agreement
Section 33.1 Assessment
Legal Skills in Action Answer
Maintaining the Premises
Petitions will vary, but should include the
duties of the landlord in regards to the
grounds of the property.
Understanding Business and Personal Law
Renting a Place to Live
End of Section 33.1
The Rental Agreement