State laws shape what can and can’t be in a rental agreement. Laws discuss the rights and obligations of the parties, and when written into an agreement, ideally both sides will comply (or at least try to) in good faith. But all too often that is not the case, which is why we’re in business. Parties frequently misunderstand their legal rights, and obligations then take actions that lead to trouble.
Laws impacting rental agreements include local ordinances, state statutes, and common law (judicial decisions made over the years). They could fill a book, and it definitely would not be a best seller. I wouldn’t wait for the movie.
What Kinds of Agreements Can the Parties Make?
A rental agreement can be written or verbal and is for a fixed period (month-to-month or week-to-week). This periodic agreement, unlike a lease, doesn’t state how long it will be in effect.
An agreement can also be a lease. It’s written or oral and covers a specific period, such as six or 12 months. A lease covering more than a year must be in writing. Both types of agreements create a tenancy.
What’s Required by Law to Make the Agreement Valid?
The agreement must:
- Show the parties’ intent to create a landlord-tenant relationship
- Identify the parties
- Describe the premises
- State the time, amount, and how rent payments are made
- State a definite time that the agreement involves (month-to-month, a year)
- Show both parties agree
- They both have obligations (neither has an unrestricted right to withdraw)
- They have the legal capacity to enter a contract (they’re not minors or mentally impotent)
- Be for a lawful reason
A party can’t waive obligations imposed by statutory law through this contract. Provisions requiring a tenant to give up their procedural rights, rights concerning security deposits, or ability to sue a landlord would be invalid and unenforceable.
Legal Rights and Obligations That May Be Included in an Agreement
If a party has a right or obligation under a local ordinance or state statute, it applies whether it’s in an agreement or not, though some disclosures are required by law. Some of these issues covered by statute that may appear in an agreement include:
- The landlord is responsible for HVAC equipment, stairs, railings, fire exits, smoke detectors
- The landlord’s disclosures concerning known bedbug, asbestos, lead paint, and mold problems
- The consequences if the tenant fails to pay rent, breaches the agreement, or criminal activity happens in the unit
- How the security deposit will be handled
- How the lease can be terminated
- The notices the tenant will receive if the rent increases
- What happens to the tenants if the landlord sells the property
Many laws and court decisions impact the parties. If you’re accused of breaking the law, ignorance is no defense.
We’re Here to Help
If you’re a landlord and have questions about your rights and how to protect them or need legal representation, call Anthony Burton at (949) 244-4207 or fill out our online contact form today.
