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The landlord and tenant relationship is often fraught with turmoil, especially when one violates the lease or rental agreement. In order to help manage expectations in the event of a default by either party, make sure you are familiar with the following terminology.

Duration:

The term of the agreement will delineate the length of time that the landlord and tenant are obligated under the terms of the lease or rental agreement. Many leases are enforceable for a definite period of time, usually six or twelve months. Still other leases are renewable on a month-to-month basis, meaning that either party may terminate the lease at the end of any month, with proper notice to the other. What type of lease is best will depend on the specific situation of the parties.

Deposit:

Many landlord and tenant disputes occur because of the security deposit. The purpose of the security deposit is to allow the landlord to have a reserve in the event that the tenant causes damage to the property. A typical security deposit will be equal to the first and last months’ rent.

Rental Amount:

The rental amount defines how much rent should be paid monthly. Additionally, it will most likely define the day of the month by which the rent should be paid and if there is any grace period. Finally, the rent provision should define any late fees.

Payment of Utilities:

The lease or rental agreement should enumerate who pays what utilities. Utilities can be quite costly, especially those for electricity and/or gas. Often times, the utility payments are the “make-or-break” element of the agreement. Past utility payments should be utilized by the tenant to determine whether the cost of renting the property is affordable.

Use/Occupancy Terms:

Both residential and commercial leases will generally contain certain restrictions on the use and occupancy of the property. An example of a use restriction would be if the tenant cannot have pets on the property. Additionally, most residential leases contain restrictions on loud noise or music. Finally, the lease may limit specific types of property or items. For example, the agreement may state that waterbeds are not allowed.

Right of Landlord to Enter the Premises:

In some instances, the landlord needs to be able to enter the premises. For example, if the landlord needs to show the property to prospective tenants, or if the building is undergoing a repair where each unit needs to be specifically inspected, then the landlord may need to come onto the property. The right to enter provision must state how much notice and what kind of notice should be given to the tenant prior to the landlord entering.

Maintenance:

Who will maintain the premises? This can be a blanket statement that the landlord or tenant is obligated to repair things when they break down. Or it could be specific (for example, the landlord repairs any appliances, but the tenant repairs any aesthetics). In any event, maintenance can become quite expensive, especially in older buildings, so be sure each party’s obligations are specifically enumerated.

Remedies:

People often break their lease or rental agreement. Or they don’t do something they are supposed to do under the agreement. It happens every day all over the country. That is why we have leases and rental agreements in the first place, because they outline each party’s rights and responsibilities and what should be done in the event that the parties don’t respect the rights and responsibilities. Naturally then, the agreement needs to outline what each party can do in the event of default or breach.

While these are the basic terms to look for in any lease, every provision contained in the lease and should be closely scrutinized. Additionally, jurisdictions will vary as to what rights of both the landlord and tenant.

Learn more about Virginia and Maryland real estate law from a Virginia real estate attorney or a Maryland real estate attorney.

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