2.02
Financial 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 condition
Will make repairs to property. Can charge if the tenant is
at fault.
Cannot enter the property without written notice to the
tenant
Cannot increase rent until the lease ends
Although 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 is 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