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Landlord Tenant Law Real Estate Terms and Examples

By Edited Jun 24, 2015 0 1

1) Fixed Lease-

Definition: A lease where the rent is a fixed amount, which often includes operating expenses.

Example: Tara rents an apartment with a fixed amount of rent of $1200/month. All the apartments around Tara go up to $1600/month, but Tara’s rent will not raise because it is fixed at $1200. Tara’s rent also includes the fee for any repairs needed.

Elements:

a)     A lease- Tara rents an apartment.

b)    Fixed rent- Tara has a fixed rent of $1200 and does not raise even when her neighbors rent raises to $1600.

c)     Includes repairs- Tara’s rent also includes the fee for any repairs needed.

2) Graduated Lease-

Definition: A lease where the rent is stable, but leaves room for bumps in the rent to account for the current state of the economy and value of the property.

Example: Sarah rents an apartment at $1000 in 1999. She is on a lease agreement that allows for bumps in the cost of living, but is still stable. She stays at her apartment through the mid 2000’s economic boom. Sarah’s rent rises to $1400 in 2005 because the value of the apartments jumped so high.

Elements:

a)     A lease- Sarah is renting an apartment.

b)    Rent is stable- Sarah is on a lease agreement that allows for bumps in the cost of living, but is still stable.

c)     Rent fluctuates with the economy- Sarah’s rent jumped from $1000 to $1400 in the economy boom.

3) Net Lease-

Definition: A lease that includes the rent and all operating expenses.

Example: Paul rented a commercial building for $4,000/month. The rent includes all utilities and an allowance for repairs if needed.

Elements:

a)     A lease that is commonly commercial- Paul rented a commercial building at $4,000.

b)    Commonly includes utilities- Paul’s rent includes utilities.

c)     Commonly includes repairs- Paul’s rent includes repairs on the commercial building.

4) Assignment-

Definition: The transfer of occupancy to a new tenant in a lease.

Example: Karen is the owner of a townhouse. She rented her townhouse out to Tod for three years. After three years Tod moves out and she rents her townhouse to Fred. She transfers the right of occupancy from Tod to Fred.

Elements:

a)     A lease- Karen rents out her townhouse to tenants.

b)    Two separate tenants and a lease- Karen rented her townhouse out to Tod for 3 years and then Fred rented it after.

c)     Transfer of occupancy- Karen transfers the right of occupancy from Tod to Fred.

5) Novation-

Definition: A lease that replaces the lease between the landlord and the current tenant with a lease between the landlord and a new tenant and releases the current tenant.

Example: Arnold rented his house out to Terry for one year. After 6 months Terry found a house he wanted to buy and wanted out of his lease. Terry found a new tenant, Brandon, to rent the house for 6 months to replace Terry. Arnold agreed to rent his home to Brandon for the remaining 6 months of Terry’s lease and release Terry from any responsibilities.

Elements:

a)     A lease with a landlord and tenant- Arnold rented his house out to Terry for one year.

b)    A tenant that wants out of their lease early- After 6 months Terry found a house he wanted to buy and wanted out of his lease.

c)     Current tenant finds a replacement tenant- Terry found a new tenant, Brandon, to rent the house for 6 months to replace Terry and rid Terry of all his responsibilities.

6) Actual Eviction-

Definition: When the landlord forces a tenant to leave either verbally or physically.

Example: Holly rented her house to Gary for year. After three months Gary stops paying the rent. Holly sends him a notice that says he has 7 days to pay or he has to leave the house. Gary does not pay and does not leave. Holly has to move his stuff out into the yard and change the locks to keep Gary out.

Elements:

a)     Landlord needs a tenant to leave the property- Gary stopped paying the rent to Holly.

b)    Landlord verbally asks the tenant to leave- Holly tells Gary he must pay up or leave within a week.

c)     Landlord physically forces the tenant to leave- Holly move his stuff out into the yard and changes the locks to keep Gary out.

7) Covenant of Quiet Enjoyment-

Definition: A rule that gives tenants the right to private and undisturbed possession of the property during their lease term.

Example: John rented a house out from Bob for one year. Three months into the lease Bob asked if he could show his sister the property because she was visiting from far away. Bob said he would just come by when John was not there because he had a key. John said no way and it was an invasion of his right of privacy while he lived on the property. Bob agreed not to show the property and respect John’s privacy.

Elements:

a)     Tenant rents a property- Bob rented John a house.

b)    Tenant has a problem with landlord and privacy- Bob said he would just come by when John was not there because he had a key.

c)     Tenant has a right to private possession of the property- John said no way and it was an invasion of his right of privacy while he lived on the property. Bob agreed not to show the property and respect John’s privacy.

8) Notice to Remedy or Quit-

Definition: A notice from a landlord that states an amount due to a tenant that must be paid within three days or the tenant must move out.

Example: Mary rented her condo out to Simon for $1000 on a year lease. After three months Simon stops paying his rent. Mary really wants her money so she gives Simon a notice that says he must pay the money he owes Mary or he must leave the property within three days.

Elements:

a)     Tenant is not paying rent to the landlord- After three months Simon stops paying his rent.

b)    Tenant must pay money within three days- Mary sends a notice to Simon to pay the money owed in three days.

c)     Tenant must leave the property if they chose not to pay within three days- Mary really wants her money so she gives Simon a notice that says he must pay the money he owes Mary or he must leave the property within three days.

9) Abandonment-

Definition: When a tenant leaves a property relinquishes possession.

Example: Ron rented a house for $2000/month for two years. After one year and a half Ron lost his job and could no longer afford the $2000/month.  He left the property with all his things, without telling the owners and stopped paying.

Elements:

a)     Tenant leaves a property- Ron lost his job and then leaves the property.

b)    Tenant stops paying- Ron stops paying the rent because he lost his job.

c)     Tenant relinquishes possession- He left the property with all his things, without telling the owners and stopped paying.

10) Rent control-

Definition: A law that sets a maximum limit on the amount of rent a landlord can charge.

Example: Bob rented an apartment from a city that has a rent control. Bob pays $1300/month and the max amount they can charge him for his apartment is $1500.  If the economy turns around and the property values raise, the apartment complex cannot raise his rent to match the economy. He will never pay more than $1500.

Elements:

a)     A tenant rents a property- Bob rents an apartment.

b)    Maximum limit on rent- He will never pay more than $1500.

c)     Cannot fluctuate with the economy- If the economy turns around and the property values raise, the apartment complex cannot raise his rent to match the economy.

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Comments

Mar 24, 2011 9:27am
bh25
Good examples.
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