Lease Laws: Understanding Your Rights And Responsibilities

A lease is a contract between a landlord and a tenant, outlining the terms and conditions of the rental. In the US, lease agreements are governed by state laws, which can vary depending on the county or town. For instance, in Texas, a lease agreement longer than a year must be in writing, whereas in New York, leases for apartments that are not rent-stabilized may be oral or written. In California, tenants are legally bound to pay rent for the full lease term, typically a year, whether or not they continue to live in the rental unit. However, there are exceptions, such as if the tenant is a victim of domestic violence or is starting active military duty. Understanding lease laws is crucial for both landlords and tenants to ensure a smooth rental experience and avoid legal issues.

Lease termination

California

In California, tenants are generally required to provide notice before ending a lease, with the amount of notice depending on the type of lease:

• Weekly leases: seven days of notice
• Monthly leases: 30 days of notice

Tenants who break a fixed-term lease early without a valid reason may be considered to be "breaking" the lease and may face financial penalties. However, there are several situations in which tenants can legally break a lease early without penalties, including:

• Early termination clause: Landlords can include an "Early Lease Termination Clause," allowing both parties to end the agreement early, usually with a penalty fee of two months' rent and 30 days' notice.
• Active military duty: Tenants entering active military service are protected and can terminate their lease early.
• Uninhabitable unit: If the rental unit violates health or safety codes and the landlord fails to make repairs, the tenant may be considered "constructively evicted" and can break the lease.
• Privacy violations: If the landlord repeatedly violates the tenant's privacy rights, such as by entering the rental unit without proper notice, the tenant may be able to break the lease.
• Domestic violence or specified crimes: California law provides early termination rights for tenants who are victims of domestic abuse, sexual abuse, or certain other crimes.

Texas

In Texas, the requirements for ending a lease early depend on the type of lease and specific circumstances:

• Month-to-month leases: Either the tenant or landlord can end a month-to-month lease by providing notice. The tenancy ends on the day stated in the notice or one month after the notice is given, whichever is later.
• Statutory rights to terminate: Texas law gives both the landlord and tenant explicit rights to end a lease early in certain situations, including military deployment, family violence, sexual assault, and landlord failure to make repairs.
• Lease termination fees: Landlords can charge "reasonable" fees for reletting a property, but these fees must cover actual expenses and cannot be used to penalize tenants for breaking a lease.

New York

In New York, the lease termination process depends on the type of tenancy and specific circumstances:

• Non-rent regulated leases: Landlords are not required to renew non-rent regulated leases. If the landlord does not intend to renew, they must provide advanced written notice, with the amount of notice depending on the length of the tenant's occupancy.
• Rent-regulated leases: Rent-stabilized tenants have the right to a one- or two-year renewal lease on the same terms and conditions as the original lease. Landlords can only refuse to renew under certain circumstances, such as the tenant not using the premises as their primary residence.
• Month-to-month tenants: Month-to-month tenancies can be terminated by either party by providing notice. Outside of New York City, tenants must give one month's notice.
• Senior citizen or individuals with disabilities: Tenants or their spouses/dependents who are 62 or older, or living with a disability, can terminate their leases if they can no longer live independently or plan to move to a facility for seniors or individuals with disabilities.
• Military personnel: Individuals entering active duty in the military can terminate their residential lease if it was executed before entering active duty and the premises were occupied by them or their dependents.
• Victims of domestic violence: Tenants who are victims of domestic violence and reasonably fear further violence can terminate their lease by providing notice and documentation to the landlord.

Month-to-month leases

A month-to-month lease is a periodic tenancy created when a renter is granted possession of the property with no definite expiration date and pays the owner on a monthly basis. This type of tenancy is most commonly found in residential leases.

Month-to-month tenancy falls under the real estate laws that cover leases. In legal real estate terminology, a lease is a contract between the owner of a property, also known as the landlord, and a tenant, who rents the property. The lease transfers the owner's rights to the exclusive possession and use of the property to the tenant for an agreed-upon period. The lease sets forth the period of time for which the contract is to run and the amount of rent the tenant is contracted to pay.

In a month-to-month tenancy, the renter is not tied down to a long-term lease and can choose to leave with relative impunity, with a maximum of 30 days' notice. Similarly, landlords can choose to end the arrangement with the same impunity, giving them greater control of their property. This type of tenancy offers financial fluidity, as landlords can change the rental amount every month if they wish, and renters can take advantage of a better offer elsewhere in quick fashion.

However, month-to-month tenancy also comes with its drawbacks. Renters generally pay higher rents than with long-term leases due to the possibility of sudden vacancies that can't be immediately filled. Landlords can also suffer from less predictable income than they would be afforded by a long-term lease. Additionally, renters cannot be sure of their tenancy beyond the span of one month and so must have a quick move plan always in place.

In New York, non-rent-regulated renters who do not have leases and pay rent on a monthly basis are called "month-to-month" tenants. A month-to-month tenancy may be terminated by either party. If the landlord plans to terminate, they must give notice on the same timeline as terminating non-regulated leases. Outside of New York City, the tenant must give one month's notice to terminate the lease.

In Texas, according to Section 91.001 of the Texas Property Code, a month-to-month lease may be ended by either the tenant or the landlord. Once they notify the other party, the tenancy ends on whichever of the following is later: the day stated in the notice, or for rental periods of at least one month, one month after the day notice is given. For rental periods of less than one month, the day following the expiration of the period beginning on the day on which notice is given and extending for a number of days equal to the number of days in the rent-paying period.

Lease succession

In New York State, for example, a "family member" who lives with a tenant in a rent-regulated apartment may have the right to lease succession. This means they can take over the rent-stabilized lease in their name or continue to occupy a rent-controlled apartment. To be eligible, the family member must have resided in the apartment as their primary residence for at least two years before the tenant's death or departure. If the family member is a senior citizen or has a disability, this minimum period is reduced to one year.

In Thailand, lease succession is not an automatic right. The lease agreement must include specific clauses granting the right of succession to the lessee's heirs. Without these clauses, the lease agreement is terminated upon the death of the lessee, and the owner can take possession of the property.

It's important to note that lease succession laws can vary depending on the location and type of tenancy, so it's always best to refer to local regulations and seek legal advice for specific situations.

Lease renewal

Benefits of Lease Renewal for Landlords:

• Eliminates the cost of finding new tenants: Finding new tenants can be expensive and time-consuming due to advertising costs, repairs, maintenance, and screening potential candidates.
• Reduces the risk of vacancy: A vacant property results in lost rental income and increases the vulnerability to break-ins, vandalism, and undetected damage.
• Reduces the risk of having a bad tenant: Screening new tenants may not always be effective, and ill-fitting tenants can cause property damage, non-payment of rent, and difficulties with neighbours.
• Tenants are already familiar with the lease terms: This reduces the time spent on fielding tenant questions and allows for a smoother rental process.

Considerations Before Offering Lease Renewal:

• Only renew with good tenants: Consider whether the tenant pays rent on time, takes care of the property, and respects neighbours.
• Rent increase: Decide if you need to increase the rent and send a rent increase notice before the lease renewal offer.
• Notify tenants in advance: Landlords should offer a lease renewal notice 90 days before the lease expires to receive a reply within 30 days and have enough time to find a new tenant if needed.

Steps to Renew a Lease Agreement:

• Determine if you want to present lease renewal options: Consider the past year of renting and whether you want to continue the tenancy.
• Inquire about the tenant's desire to renew: Contact the tenant via email, text, or through a rental property management platform to understand their plans.
• Provide an updated lease agreement: Once both parties agree on the new rental terms, create a written agreement and have it signed by all parties.
• Provide move-out instructions if not renewing: If the tenant does not plan to renew, provide instructions on moving out, returning keys, and vacating the unit.

Common Misconceptions About Lease Renewal:

• A landlord must have a reason for not renewing a lease: In most cases, either party may terminate a lease at the end of the term without any reason, except for specific cases like low-income housing tax credit properties.
• A tenant can withhold rent if the landlord fails to make repairs: Withholding rent is seen as retaliation, and the tenant risks eviction and may forfeit certain rights.
• A tenant can break the lease if the landlord fails to make repairs: There are specific procedures that tenants must follow when requesting repairs before they can terminate a lease due to the landlord's failure to make repairs.

In conclusion, lease renewal can be beneficial for landlords to retain good tenants and avoid the costs and hassles of finding new ones. However, it is important to carefully consider the pros and cons before making a decision and to follow the necessary steps to renew the lease agreement.

Landlord's duty to mitigate damages

In the state of Texas, a landlord has a duty to mitigate damages if a tenant abandons the leased premises in violation of the lease. This means that the landlord must make a reasonable effort to re-rent the property to a suitable tenant. This duty to mitigate damages exists even if the lease includes a clause waiving this right; such a clause is void and the landlord is required to use objectively reasonable efforts to re-lease the premises.

If a landlord fails to make reasonable efforts to mitigate damages, their recovery may be precluded to the degree that damages could reasonably have been avoided. For example, in the case of *White v. Harrison*, a commercial landlord in Dallas, Texas complied with their duty to mitigate by preparing the property for a new tenant, posting signs and online advertisements, and listing the property with the appropriate services. Ultimately, they succeeded in re-renting the property four years before the original lease expired.

However, it is important to note that the burden is on the tenant to prove in court that the landlord did not make reasonable efforts to mitigate damages. The tenant must also make a case for the amount of damages that could have been avoided. Even if the court agrees that the landlord failed to mitigate, the tenant may still owe a month's rent as a landlord who makes no effort to mitigate is still entitled to damages for the reasonable amount of time needed to find a new tenant.

Frequently asked questions