Chapter 29
LANDLORD AND TENANT
WHAT IS A LEASE?
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Lease an agreement in which one party receives
temporary possession of another’s real property in
exchange for rent
Rent the consideration given in return for temporary
possession
Landlord the lessor or the person who gives the lease
Tenant the lessee or the person who receives the lease
Leasehold estate the ownership interest of the tenant
A lease may be oral, but under the statute of frauds,
leases that extend for more than one year must be in
writing or courts may refuse to enforce them.
WHAT TYPES OF LEASEHOLD
ESTATES MAY BE CREATED?
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There are four types.
– Periodic Tenancy when a leasehold is for a renewable
period of time with rent due at stated intervals
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most common
Tenancy from Month to Month if the rent is paid by the
month
– Tenancy for Years is created when a leasehold is
for a definite period of time
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has name even when period for lease is less than one
year
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Tenancy at Sufferance If a
tenant remains in possession
after the lease has expired
– landlord may treat tenant as
a trespasser
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Tenancy at Will If a party
possesses land with the
owner’s permission but
without an agreement as to
the term of the lease or the
amount of the rent
– this leasehold may be
terminated at any time by
either party
WHAT ARE THE RIGHTS AND
DUTIES OF A TENANT?
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The right to possession
– the tenant has the right to the possession of the real
property starting at the time agreed upon in the lease
– eviction if the landlord removes the tenant from possession
of all the real property
– partial eviction depriving the tenant of the possession of
only one part
– constructive eviction when property becomes so unfit for
habitation through fault of landlord that the tenant is forced
to abandon it
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The right to the use of the property
– The tenant is allowed to use the leased property in the
manner specified in the lease. If a use is not stated in the
lease, the tenant my use the property for any purpose for
which it is designed or customarily used
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The duty to pay rent
– The tenant’s most important duty is to pay the agreed upon
rent when it is due
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The duty to take care of the property
– duty of reasonable care a tenant must take reasonable care
of the leased property and return it in the same condition it
was in when the lease began
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The right to assign the lease or to sublet
– a tenant may assign the lease or may sublet the premises
– assignment of lease takes place when the tenant transfers
his or her entire interest in the lease to a third person
– subletting tenant’s transferring part of interest to another
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leases all of the property to a third person for a period of time
that is less than the term remaining on the lease
or leases part of the property to a third person for part or all of
the term remaining
The duty to satisfy conditions
– leases contain two kinds of duties a tenant must fulfill
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lease covenant a promise made by a tenant which, if violated,
allows the landlord to sue for damages while the lease remains
in effect
lease condition if violated, allows the landlord to terminate the
lease and evict the tenant
WHAT ARE THE RIGHTS AND
DUTIES OF A LANDLORD?
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The right to rent
– The landlord’s primary right is to the rent agreed upon in the
lease
– If the tenant fails to pay the rent, the landlord may take
legal action to recover the rent and sue to evict the tenant
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The right to regain the realty and fixtures
– At the end of the lease term, the lessor is entitled to regain
possession of the real property, such as any fixtures added
by the tenant
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The duty to maintain the
premises
– The duty to maintain the
leased property generally
falls on the tenant. There
are exceptions.
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The duty to pay taxes
– In the absence of contrary
agreement, the landlord
pays all the property taxes
and assessments on the
lease property.
– Long-term leases of
commercial property
commonly provide that the
tenant will pay such taxes
and assessments
HOW CAN A LEASE BE
TERMINATED?
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A lease can be terminated in several ways:
– the end of a definite period of time
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neither the lessor nor the lesse is required to give advance
notice before termination
– by agreement before the expiration of the term
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In a periodic tenancy, the party seeking to terminate
must notify the other party. There is usually a
requirement in the lease that this notice be in writing and
be given so many days before the end of the lease period.