The Uniform Residential Landlord and Tenant Act (URLTA) is a model law enacted as a blueprint for state laws to regulate leasing and management practicesof landlords with residential properties.
The act aims to:
A lease is both an instrument of conveyance and a contract between principal parties to uphold certain covenants and obligations. The legal essence of a valid lease is that it conveys an exclusive right to use and occupy a property for a limited period of time in exchange for rent and the return of the property after the lease term is over.
Leasehold estates are distinguished from freeholds by their temporary nature. Every leasehold has a limited duration, whether the term is 99 years or not stated at all. While the lease conveys exclusive use, it may also restrict such use to conform to the landlord's desires.
Like other contracts, a lease becomes a binding agreement when the parties accept the terms of the agreement and communicate their agreement to the other party.
In a lease arrangement, the owner is the landlord, or lessor, and the renter is the tenant, or lessee.
There are four basic types of leasehold estates:
A lease agreement is a legally enforceable contract where an agent or owner of a property gives the exclusive right of possession for a specific amount of time in exchange for money.
Once a lease is in effect, the tenant’s leasehold interest in the property is considered personal property.
California's Statute of Frauds requires a lease to be in writing if:
The covenants (agreements or promises) in the lease are very important.
A gross lease requires the landlord to pay the property's operating expenses, including utilities, repairs, and maintenance, while the tenant pays only rent.
In a net lease, the tenant pays not only the rent for occupancy, but also pays maintenance and operating expenses such as taxes, insurance, utilities, and repairs.
In a graduated lease, the rent payments start at a fixed amount but increase as the lease term matures.
A ground, or land lease, concerns the land portion of a real property. The owner grants the tenant a leasehold interest in the land only, in exchange for rent.
A percentage lease is a lease whose rental is based on a percentage of the monthly or annual gross sales made on the site.
A proprietary lease conveys a leasehold interest to an owner of a cooperative.
An index lease provides for the adjustment of rent according to changes in a price index.
A security deposit is money that a tenant deposits with the owner of the apartment, in advance of possession, for the repair of any damages to the apartment for which the tenant is responsible. The maximum allowed security deposits in California are 2 months’ rent for an unfurnished rental and 3 months’ rent for a furnished rental.
A security deposit is always refundable. Fees are nonrefundable.
A sublease is the transfer by a tenant of a portion of the leasehold interest to another party.
An assignment of the lease is a transfer of the entire leasehold interest by a tenant to a third party.
Landlords have the following rights:
Landlords have the following obligations:
In most cases, a landlord may enter a dwelling unit upon giving 24-hour notice. However, in emergency situations, under a court order, where the tenant has abandoned or surrendered the premises, or when the lease agreement stipulates other situations, no notice is required.
Tenants have the right to:
Obligations the tenant has to the landlord:
Tenants are entitled to a safe and livable home, often referred to as the landlord’s “implied warranty of habitability.”
A tenant must provide notice to a landlord if repairs are needed. If the landlord receives this notice and fails to make the repairs necessary within a reasonable amount of time, the tenant has the right to:
The repair-and-deduct option allows the tenant to arrange and pay for repairs, then deduct the amount from rent payments. The tenant must wait a “reasonable time” (in California that is 30 days) for the landlord to fix the items before choosing to fix them his or herself.
A lease may terminate for any of the following causes.
Tenant default occurs most commonly from failure to pay rent or maintain the premises. If a tenant is in default, the landlord may file a suit for possession, also called a suit for eviction.
The most common form of landlord default is failure to provide services and maintain the property condition.
A successful suit for specific performance compels the defaulting party to perform the contract obligation that was breached.
Eviction is the legal procedure of removing a tenant from a property because there is a breach of the lease or rental agreement.
The required steps for a legal eviction in California include:
Rent control is a government regulation of the amount of rent a landlord may charge a tenant.
California currently has two types of rent control ordinances:
Although they are called “mobile”, mobilehomes are not easily moveable since many are on foundations and have additional features such as decks and patios. Special rules apply to the rental of mobilehomes or lots in mobilehome parks. Chapter 2.5 of the California Civil Code outlines the Mobilehome Residency Law.
No. | Subject |
---|---|
339 | culmination |
338 | Exclusive agency vs Exclusive right to sell |
337 | ground floor handicapped accessible |
336 | violation of the Federal Fair Housing Act |
335 | Valuable consideration |
334 | quiet title |
333 | Subrogation |
332 | Quiz 15 |
331 | Chapter 15 Conclusion |
330 | Real Estate Law 107 |
329 | Real Estate Law 106 |
328 | Real Estate Law 105 |
327 | Real Estate Law 104 |
326 | Real Estate Law 103 |
325 | Real Estate Law 102 |
324 | Quiz 14 |
» | Chapter 14 Conclusion |
322 | Real Estate Law 101 |
321 | Real Estate Law 100 |
320 | Real Estate Law 99 |