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FACT SHEETS - The Rental Agreement
by Susan Forrest
When you have been approved to move into a rental you and your landlord will enter into one of two kinds of agreements: a lease or a periodic rental agreement. These agreements can be written or oral.Oral Rental Agreements:
An oral rental agreement is legally binding, but it is much harder to prove anything should a problem arise between you and your landlord. The written lease or rental agreement is of benefit to both the landlord and the tenant especially in a situation where there are extenuating circumstances (for example, you have a pet, or a waterbed).
Any time you and a landlord agree to the lease of property in which you'll be living for more than one year, the agreement must be in writing. If it's not, the agreement probably isn't enforceable.
Written Rental Agreements
In California, the two typical kinds of written rental agreements are the month-to-month rental agreements and the lease.
Month-to-month agreements
The month-to-month agreement is a very common kind of written rental agreement. Unless the written agreement states otherwise, the rental period is the amount of time between rental payments. For example, if you pay rent on a monthly basis, you have a month-to-month tenancy. If you pay rent on a weekly basis, you have a week-to-week tenancy. In effect, the tenancy expires at the end of each period for which rent has been paid, and is renewed with the next payment of rent. These kinds of tenancies are also known as periodic.
The length of time between your required rent payments is important. It determines the required length of notice a landlord must give you before raising the rent, changing other terms of the tenancy, or lawfully ending the rental agreement. The length of time between required payments also determines how much notice you must give the landlord before moving out of the unit. In other words, if you have a month-to-month rental agreement (usually 30 days) you are required to give at least a month's notice before you move out.
Similarly, if a landlord no longer wants to rent to you, and you have a month-to-month rental agreement, the landlord must give you a month's notice. Also, if the landlord decides to raise the rent, you must receivce a month's notice.
The rule of thumb is that the required length of notice for any change to the rental agreement (be it your moving, the landlord asking you to move, or the landlord raising the rent) must be equal to the length of time of the rental agreement. There is an exception to this rule: The required length of notice can only be shorteer than the length of the agreement if it is stipulated in the rental agreement. Even if your agreement is a week-to-week agreement, the length of notice can never be less than seven days unless your landlord has reason to give you a three-day eviction notice.
Leases
A lease is usually created for a longer rental term. Most residential leases are for six months to one year, even though rent is usually paid monthly. If you have a lease, your rent can't be raised while the lease is in effect, unless the lease agreement provides for rent increases. The landlord cannot evict you during the period of the lease except for certain reasons (for example, failing to pay rent or damaging the property).
A lease gives the tenant the security of a long-term agreement at a known cost. Even if the lease allows increases in the rent, it normally provides limits on how much and how often the rent can be raised. The disadvantage is that if you need to move, a lease may be difficult for you to break, especially if the landlord can't find another tenant to take over the lease. If you signed a lease for a year's tenancy, for example, and decide 3 months into it that you want to move, you may be responsible for paying the remaining 9 months rent, even if you vacate the premises.
You may want to talk with an attorney or legal aid society before signing a lease agreement to make sure that you understand all of the lease's terms and your obligations.
What Information Should the Lease Include?
Most landlords use a standard printed form for their leases and rental agreements. It is your responsibility to read the entire form thoroughly and carefully before you sign it. If you don't understand the form, discuss it with the landlord, or perhaps with a legal aid society or an attorney.
Most periodic rental agreements won't set a limit on exactly how long you may live in the rental unit, as long as you continue to pay rent, however, leases will contain an end date. With a periodic rental agreement, it is assumed that unless you or your landlord provide the appropriate written notice, that you will remain there indefinitely. You do not have to sign a new rental agreeement every month. With a lease, however, you may need to re-negotiate at the end of the term of tenancy. You may be required to sign a new lease, or your agreement may change from a lease to a periodic tenancy. If you are unclear about what is happening when your lease expires, talk to your landlord. Find out whether you can (if you want to) re-negotiate the lease for a set period of time, or, if you rather, if it can become a periodic tenancy.
The rental agreement or lease must contain several important items:
- The amount of the rent
- When rent is due
- The number of people allowed
- The amount of any late charge
- Whether pets are allowed
- Whether attorney's fees can be collected in the event of a lawsuit between you and the landlord
An agreement or lease may also may contain other terms, such as whether you can repair your car in the parking lot or driveway of the rental unit, or whether you must obtain permission from or give notice to the landlord before having a party.Never sign an agreement if you don't understand it or if you think it's unfair. Always ask for a copy of the complete agreement after you and the landlord have signed it. Make sure that the correct person (property manager, landlord, or property owner) signs the lease, and if there are any changes to the standard form, for any fill-in-the-blank areas (ie: allowing pets) that both you and the appropriate party initial. Keep the agreement in a safe place. If a disagreement arises, this is the legal document that will protect both you and the landlord.
Disclaimer of Liability:
The information contained in this material is for the sole purpose of providing general information only, and must not be construed as legal advice, or take the place of competent legal counsel. Do not rely on these materials without consulting an attorney concerning your situation. The dissemination of this information does not create an attorney-client relationship and does not seek to represent you based upon your visit or review of this information.
Every effort has been made to ensure the information contained in the material is current. However, the law does change and the general information contained within may become dated. You should seek the advice of legal counsel for specific situations and advice to the "then existing" status of the law.