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Lease Contracts and Security Deposits
Types of Lease Contracts
Security Deposits
Types of Lease Contracts
A lease is a contract between a tenant and a landlord that states the
date the tenancy begins, the date the tenancy ends, and the obligations
of the landlord and tenant.
Be sure you know which kind of lease you have; you might think it has
ended while your landlord continues to charge you.
Types of leasing contracts:
- a fixed-term lease which concludes on the date specified and can
be extended if agreed to by the landlord.
- a self-extending lease which renews itself each year until either
the landlord or the tenant decides to cancel the lease.
- a Tenancy At Will lease (TAW) in which a landlord rents to the
tenant from rental period to rental period. This tenancy may be
terminated by either the tenant or the landlord by a written notice
given by either party to the other before the first day of any rental
period effective on the last day of that rental period, or thirty days
after such notice (whichever is longer).
- Subleasing is an agreement between a residential tenant and
someone else allowing the subtenant to live in the tenant's dwelling
for a portion of the original lease term, while the tenant is away. It
is a common practice for students to sublease their apartment or a
room in their rental house while they go home for the summer.
Subleasing allows the tenant to collect a portion of their rent while
they are not living in the dwelling. Keep in mind that your
name will remain on the lease, so you will be ultimately responsible for
rent and damages.
Click to view:
Sample leases can be found by contacting the Greater Boston Real
Estate Board. The website is
http://www.gbreb.com/, or contact 617-423-8700.
Signing the Lease
When you have found the accommodation you wish to rent, discuss the
terms of the lease with the landlord. It is to your advantage to have
a lease in writing. A written lease protects both you and your landlord
by specifying the rights and obligations of each party. Any verbal agreements
are difficult to enforce or to prove if problems develop. Read the lease carefully
before signing! It is a legally binding document. If there are any terms
or conditions that seem unreasonable or unclear, discuss them with the
landlord. You may wish to take the lease to a legal aid service or an
attorney to have it checked over for you. Any changes or additions to
the lease should be agreed to by both you and your landlord. They should
appear in the lease before it is signed, and should be initialed by
both you and the landlord. A rider or addendum may be attached to the
lease and should be signed and dated by both parties. If the landlord
has agreed to make repairs, for example, this statement should be included
in the rider. Some landlords require a co-signer on a lease if a student
is under 21 years of age and has no prior rental references. After you
have signed the lease, the landlord may mail it to whomever you designate
(usually a parent) to obtain another signature. The co-signer will be
held responsible if the rent is not paid or if any problems arise. Keep
accurate records of any initial transactions or negotiations, and
make sure that you keep a copy of the signed lease.
Some conditions written into a lease include:
Rent
The amount of the rent and the date it is due are stated in the lease.
Late rent penalties are illegal while discounts for early payment are
not.
Compliance with Governmental Health and Safety Codes
The lease should state the landlord's legal obligation to ensure that
the unit complies with all applicable health and safety codes and
regulations.
Other Charges
The landlord may require the first and last month's rent in advance,
a security deposit equal to the first month's rent, and an amount to
cover the cost of replacing the locks. S/he may not request any other
deposits.
Maintenance & Repairs
You are required to pay only for the damages caused to the apartment
by yourself or your guests. Reasonable wear or tear does not constitute
such damage.
Subletting
A sublet is an agreement between you and another person whereby
s/he agrees to occupy your apartment before the lease expires. You may
not legally sublet without the agreement of your landlord.
If you are a sub-tenant, you have the same legal rights and obligations
as the original tenant, and the landlord may not impose any additional
costs or deposits above those which were legally charged to the original
tenant. Be sure the original tenant has the legal right to sublet the
apartment. Click here to view sample sublet
form
Notices In Writing
In order for information to be officially received by you or
your landlord, it must be in writing, sent by certified or registered
mail, and signed by the recipient. You can also hand deliver the written
message and have it and a copy signed.
A complete summary of the points that should be covered in the
lease:
- Names and addresses of landlord and tenant(s).
- Description of the property being rented.
- The number of people allowed to live in the unit.
- Dates covered by the lease, when and if the lease can be renewed,
and when and how the lease can be ended. If the lease is terminated
early, is there a penalty?
- Are you allowed to sublet?
- What is the amount of the rent and when is it due? Is there any
grace period if not paid on this date? Is there a penalty for late
payment? When can the rent be increased?
- Are utilities included in the rent? If some are included, they
should be specified.
- Who is responsible for maintenance and repairs? How will these
costs be handled? Are you expected to pay any part?
- Has the landlord reference his/her obligation to ensure that the
unit complies with all applicable health and safety codes?
- Have you called the Board of Health to determine any history of
complaints?
- Is extermination part of the maintenance? How often will it be
done? Who will pay for it?
- Are pets allowed? If so, is there an extra charge?
- If the accommodation is furnished, a list of the furniture and
its condition should be included in the lease. Who is responsible
for the furnishings in case of fire or theft?
- Who has the right of entry to the rental unit? May the owner enter
for inspection or repairs?
- Is a security deposit required? If so, how much? When and under
what conditions will it be returned?
- If renting a room within a house, what areas may you use and when?
Are there any kitchen restrictions? What are the guest policies?
- How would the landlord provide notice to vacate?
- Is a parking space included? Fee or no fee? Have it
written into the lease.
- Make sure all repairs are written into the lease before you sign
it.
Illegal Lease Clauses
When a lease clause violates a law or denies a tenant a right provided
by local law, the clause has no legal effect. You may encounter clauses
such as the following:
- "Tenant will pay all attorney and court fees" - The judge
decides who pays the court costs. Tenants rarely have to pay their
landlord's attorney fees.
- "Waiver of liability" - A lease cannot limit the landlord's
financial responsibility if a tenant or guest is injured because of
the landlord's negligence or failure to make repairs.
- "Waiver of warranty of habitability or duty to repair"
- The court will not enforce a clause that requires the tenant to
make repairs of housing code violations. It is the landlord's responsibility.
- "Tenant waives the right to a jury trial" - When faced with
eviction, a tenant has the right to a trial by jury or judge. This
right cannot be waived by a lease.
Be sure to get a copy of the signed lease from your landlord and
keep it in a safe place. You may need it for future reference if any
problems occur during the term of the lease.
Negotiating a lease
Finally, remember a lease can be negotiated. You should not sign a lease
containing sections that are so one-sided that they jeopardize your
rights. To change a lease, cross out the sections you wish to delete,
initial the cross outs, and have your landlord initial before you sign
the lease. Additional provisions should be written out, dated, and signed
by you and your landlord. Make sure all changes are noted on all copies
of the lease. Read the document carefully. Do not hesitate to question
closely any section of the lease that puzzles you. Remember, only that
which is in writing is legally binding (because an oral contract/lease
is only as good as the paper it is written on). Be sure to retain a
copy of the lease for your records.
Apartment Condition Statement
Once your landlord receives your security deposit, s/he must provide
you with a list of any existing damages or certified violations of the
Sanitary Housing Code. If you agree that the list is accurate, you must
sign and return it to the landlord within fifteen days. It is best to
hold the list for the entire fifteen-day period because some potential
damages like a leaky roof, are not readily noticeable. If you discover
any existing defects which are not on the list, add them before you
sign the sheet. Keep a copy of the list.
Remodeling
Discuss any remodeling like painting or wallpapering, along with a list
of the project costs, with your landlord. Sometimes landlords do agree
to reimburse tenants for materials necessary for improving the apartment.
However, when you move, the repair of any damages from what you consider
an improvement could be deducted from your security deposit
READ EVERYTHING CAREFULLY BEFORE YOU SIGN!! Tenancy-at-Will
You are a tenant-at-will if you have a verbal agreement with
your landlord, have not renewed your lease but continue to pay rent,
have signed a lease which does not have a termination date, or have
signed a tenancy-at-will agreement. Your rights, like those of tenants
with a lease, are covered under government statutes and housing codes.
It
is important to request a letter from your landlord stating the amount
of rent agreed upon and the date it is due. You should also be provided
with a receipt for any charges paid, such as a security deposit. Your
landlord cannot request deposits greater than those for tenants with
a lease. There are some conditions of tenancy-at-will that are different
from those of a tenancy with a lease. Your landlord may raise your rent if you are notified
thirty days in advance. If you are behind in your rent, your landlord
may send you a notice to quit, and your agreement will be terminated
within fourteen days. Also, you or your landlord may terminate your
tenancy for no cause with thirty days written notice. This may be convenient
if you don't want the apartment for an entire year, but there always
exists the possibility of your landlord terminating your tenancy at
any time.
Boarding House Tenancy
If you have lived in a rooming or lodging house for more than thirty
days and less than three months, you are entitled to seven days notice
of termination of your tenancy. If you have lived in a rooming or lodging
house for three consecutive months, you are a tenant-at-will.
Security Deposits
A security deposit equal to one month's rent protects your landlord in
case you damage the apartment or move out without paying rent.
When your landlord receives your deposits for the last month's rent +
security deposit, s/he is required by law to put the security deposit
amount in an interest-bearing account within thirty days of taking the
deposit. The landlord is required to identify the bank, address,
account number, and the amount of the deposit held; and pay 5% interest or
any lesser amount of interest actually received from the bank where the
deposit is held, if the tenant resides in the unit for at least one year.
There is no requirement for a landlord to escrow the last month's rental
amount in a separate interest-bearing account. However, yearly
interest is paid on the last month's rent as well.
You must receive a statement of the account once a year on the date your
lease began and are entitled to the interest earned. You may receive it
in full or deduct the amount from your rent. If the building is sold during
your tenancy, the previous owner must transfer the account to the new
owner.
Your deposit must be returned to you within thirty days of your moving
out. If any deductions are made, a statement sworn to under the pains
and penalties of perjury listing the damages for which the landlord is
deducting, along with documentation showing the actual or estimated costs
of these repairs such as bills, receipts, or invoices must be provided to
the tenant. The deductions must be reasonably priced, and cover only damages
beyond normal wear and tear caused by your tenancy. "Normal wear
and tear" is defined as damage or deterioration caused by ordinary
and reasonable use of the property. A landlord should expect to have to
repaint the walls every few years, especially the kitchen. Furniture normally
becomes worn with age; walls acquire small nail holes; carpets become
worn. The law requires the landlord to pay for ordinary wear and tear.
You must pay for accidental or intentional damages and for cleaning made
necessary by extreme dirtiness. Read your lease carefully to ensure
you are clear about these expectations!
*Apartment Condition Statement
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