2.02Financial and Legal Aspects of

Renting

Landlord

• Owner of the Property• Expects the following from tenant:

– Rent to be paid on time– Keep the property in reasonable conditionWill make repairs to property. Can charge if the tenant

is at fault.Cannot enter the property without written notice to the

tenantCannot increase rent until the lease endsAlthough no one can refuse to rent to people with

children, the owner can limit the number of people living in the apartment.

Tenant

• Person who rents a property from the owner

Lease

• The legal document signed by landlord and tenant agreeing to rent a property for a specific period of time and stating the rights and duties of both parties. Most binding type of agreement. – Amount of rent, late fees, when rent amount can be

changed– Address of unit– Who pays utilities– Pets (types and sizes)

Getting the Rental Unit

• Application Fee: fee for filling out the application. Helps the landlord to know that the renter is serious.

• Usually $25-100 or higher depending on city or town

Credit Check

• Tells the landlord if the renter is paying bills on time. Usually checked through a credit agency and confidential.

Security Deposit

• Fee that covers costs for any future damage that the renter might cause to the property. Does not include normal “wear and tear” to the property.

• May equal 1 or more month’s rent

• Can be returned partially or in full

Pet Deposit

• Fee that covers damages made by pets.

• Many rental properties only allow certain types of pets and there may be a weight range.

• Many properties will also charge an extra fee per month per pet as well as the deposit.

Advance on Rent

• Landlord requires one or more month’s rent in addition to the security deposit

Renter’s Insurance

• Insurance to cover the renter in the event of flood, fire, theft or any other hazard.

• VERY inexpensive

Utilities

• Water, gas, sewer, electricity, phone, cable, trash collection

• Sometimes the landlord will pay some or all utilities, BUT usually the tenant pays all.

• This should be a MAJOR consideration when leasing a property

Assigning the Lease

• This means to transfer the remainder of the lease to another person.

• The original tenant is NO LONGER responsible for any rent or damages.

• Original tenant moves to another city and will not be returning to unit.

Subletting Your Pad: More Hassle Than It’s Worth?

• Tenant lease the property to another person.

• Original tenant is still responsible for all rent, utilities and damages.

• EX: college student leaving for semester abroad and lets friend rent apartment

EVICTION

• Legally removing people from the property

• Landlord may only start proceedings after the tenant has failed to meet the terms of the lease

• The tenant must receive written legal notice of eviction

• KNOW YOUR RIGHTS AS A TENANT

Breach of Contract

• Legal phrase for failure to meet the terms of a contract/lease.

• Non payment of rent is usually the most common type of breach