Leases

WHAT IS A LEASE?

A lease is an agreement, either written or oral, between a landlord and a renter. The lease or rental agreement creates the legal relationship between the two parties. For the length of time the rental agreement specifies, the renter has the duty to pay rent and live in a way not harmful to the premises or the neighbors. The terms of the rental agreement are subject to state rental statutes and ordinances. It is important to note that rental applications and agreements to hold an apartment are usually not the same as an apartment lease; however, their terms and conditions may be legally binding.

READ YOUR AGREEMENT CAREFULLY

Before signing any rental agreement, read it carefully. Remember that it is a legal document that may commit you to circumstances with which you don't agree. If you do not fully understand any part of the rental agreement, get advice before signing it. BYU Off-Campus Housing officials are a good source of free information and help. Bring a copy of the lease in for review.

BEWARE OF VERBAL AGREEMENTS

In an oral agreement, both parties agree to rental terms without having anything in writing. Obviously, this can cause problems if one party remembers the agreement differently from the other. We advise that lease agreements always be in writing, including any additional verbal promises made by the parties that are not in the written lease. A rental agreement for more than one year must be in writing to be enforceable.

If a landlord and renter have made any agreements about changes to the unit, such as new furniture or renovation, get them in writing. Those really intending to follow through on such promises should not object. Some may balk at the idea, however, and you will have to decide if you want to risk going ahead and then dealing with problems, if they do develop, once the tenancy begins.

TYPES OF RENTAL AGREEMENTS

In general, almost all rental agreements fall within two categories: (1) fixed-term agreements and (2) periodic or month-to-month agreements. Both fixed-term and periodic agreements have advantages and disadvantages for landlords and renters.

FIXED-TERM AGREEMENTS

The fixed-term agreement allows the renter to occupy the premises for a specific period of time, including a date of commencement and a date of termination. To be released from the fixed-term agreement, the renter must have the permission of the landlord to assign the contract to another person. Finding a replacement tenant in the middle of a semester is very difficult. If a renter abandons the rental unit before the expiration date of the agreement without finding a replacement, he or she could be held liable for the rent the landlord loses. Landlords usually include clauses in their contracts allowing students to terminate before the contract expires provided they find suitable replacements. Most rental agreements are of this type.

PERIODIC AGREEMENTS

The periodic agreement has the advantage of flexibility. Renters can, with proper notice, terminate the agreement for any reason and in any month they desire. Landlords can do the same and can raise the rent any month they wish. A periodic agreement usually extends from month to month. Unless stated otherwise in the contract, the notice required to terminate such an agreement is at least 15 days before the end of the rental month.

APARTMENT RULES AND REGULATIONS

The landlord has the right to set reasonable rules and regulations for the management of dwelling units, shared areas and facilities, and the grounds. Such rules must be designed to ensure the convenience and safety of renters, to preserve the property, or to allocate or govern the fair use of joint services and facilities such as laundry rooms, storage areas, swimming pools, or parking areas.

Such rules and regulations concerning the renter's use and occupancy of the premises are usually enforceable against the renter only if:

1. The purpose is to promote the convenience, safety, or welfare of all renters on the premises; to preserve the landlord's property from abusive use; or to make a fair distribution of services and facilities for all renters.
2. They apply to all persons occupying the premises in a fair and nondiscriminatory manner.
3. They are sufficiently explicit in their prohibition, direction, or limitation of your conduct.
4. They are not for evading the obligations of the landlord.
5. The renter has been given notice of them at the time he or she entered into the rental arrangement.
6. They do not directly contradict lease provisions.

UNLAWFUL CONTRACT PROVISIONS

Although most landlords are fair, there may be some who will take unfair advantage of a renter. Consequently, some leases may contain some provisions generally forbidden by law. The following are examples:

• A provision that forces the renter to agree to accept the blame in any future dispute with the landlord. Such a clause will usually stipulate that you will pay your landlord's legal fees in any court action taken against you.
• A provision permitting the landlord to exert unfair leverage on the renter, such as requesting and failing to return "security deposits" or "prepaid rent" under false pretenses or unproved evidence.
• A provision permitting the landlord to take possession of the renter's personal property for lack of payment of rent without following legal procedures.
• A provision freeing the landlord from responsibility for negligence in causing the renter or renter's guests injury.
• Even though these unlawful clauses may not be binding, the renters may be forced to go to court to pursue their rights, and therefore, it is a better practice to try to strike illegal clauses before signing the lease agreement. A landlord who offers a lease containing illegal clauses and refuses to strike them when asked may not be the type you wish to rent a unit from.

IF YOU MOVE BEFORE THE RENTAL AGREEMENT EXPIRES

If you, as a renter, move from the apartment before the contract expires, please realize this breaches a legal agreement, and the landlord may be entitled to damages. Although your reasons seem valid to you, you might forfeit your security deposit and be sued for the rent owing through the end of the contract.

The signed rental contract is a legally binding document that can be terminated only for reasons expressed in the contract. Marriage, mission, or moving to another apartment are not valid reasons for breaching a rental agreement unless written in the contract. A contract should never be signed with the intent of breaking it before the expiration date.

The renter should not assume that he or she may vacate the apartment anytime without penalty just because there is no language in the agreement about early termination. When a contract does not express any terms for early termination, it implies a legally binding commitment to pay rent from its commencement date to its termination date.

If you must move, you may lessen the damage of breaking your contract and reduce your risk in the following ways:

1. Negotiate. You can try to negotiate with the landlord to allow you to move and to lose only your deposit or prepaid rent. If you and your landlord reach a compromise, make sure that the agreement is in writing and signed by both parties.
2. Find a Replacement Renter. To be released from your contract obligations, you must find a person who is willing to "buy" the remainder of your contract. However, do not rely on the landlord to find your replacement renter. Make arrangements with the landlord to either (1) assign your contract to the new renter or, better, (2) create a new contract between your replacement renter and your landlord. By the way, a landlord can refuse either method if the cause is just. If a new contract is created, your contract obligations terminate; however, if your contract is assigned to the new renter, your obligation remains. If the new renter defaults you can be held liable. After the transfer is complete, you are entitled to your security deposit, less damages and other contracted deductions, within 30 days after moving out and leaving a forwarding address.
3. Subletting. No Subleasing is permitted.