Click to edit Master text styles
Second level
Third level
Fourth level
Fifth level
‹date/time›
‹footer›
‹#›
------=_NextPart_01C64058.BD0F6400
Content-Location: file:///C:/EE889234/RE11Ch14LeaseholdsLandlordandTenant_files/master03.xml
Content-Transfer-Encoding: quoted-printable
Content-Type: text/xml; charset="utf-8"
![](3D"slide0021_background.gif")
LESSON 14<=
/b>
TENANT
RELATIONS
![](3D"slide0021_image001.gif")
I’M
LOOKING FOR A
GOOD TENANT
Chapter 14
1.Define a lease and the 4 types of leasehold
estates.
2.Outline the requirements for a valid lease or rent=
al agreement.
3.Explain the difference between a sublease and an <=
/span>assignment of a lease.
4.Discuss the duties and responsibilities landlords =
and tenants owe each other.
5.Describe how tenants may be lawfully evicted.
=
6.Explain the role played by professional property <=
/span>managers.
![](3D"slide0023_image003.gif")
LEASE
•A lease or rental agreement is a legally
binding contract between an owner (lessor/landlord)
and a tenant (less<=
b>ee)
where a tenant has possession and use in exchange
for rent or services.
![](3D"slide0002_image005.gif")
TYPES OF LEASEHOLD ESTATES
(Less-than-fre= ehold estates)
(Less-than-fre= ehold estates)
1.Estate for years
•(Tenancy for years or lease)
2.Estate from period to period
<=
/span>
•(Periodic tenancy or month-to-month)=
3;
3.Estate at will
•(Tenancy at will)
4.Estate at sufferance
•(Tenancy at sufferance)
A VALID LEASE
1.Be in writ=
ing, if more than one year
•(Statute of
frauds)
2.Names of lessor and lessee
3.Sufficient description of the property
4.Show amount of rent and manner of payment
5.Give date lease term begins and length of term
=
;
6.Be signed by =
lessor
7.Involve capable parties
8.Renewal
provision in boldface type
•(Residential pro=
perty)
![](3D"slide0005_image007.gif")
A
RESIDENTIAL RENTAL AGREEME=
NT
SHOULD CONTAIN A DISCUSS=
ION
OF:
1.Utilities
2.Maintenance
3.Tenant improvements
![](3D"slide0006_image009.gif")
![](3D"slide0006_image011.gif")
4.Use of the property
5.Maximum number of occupants
6.Security and damage deposits
<=
/span>
7.Property taxes and insurance
<=
/span>
8.Rules regarding pets, guests, park=
ing,
anything else of importance
Maximum duration:
<=
span
class=3DB1B style=3D'position:absolute;left:-4.23%'>–99 years
![](3D"slide0018_image013.jpg")
![](3D"slide0018_image015.gif")
•<=
/span>Agricultural Land
–<=
/span>51
years
SECURITY DEPOSITS =
(Legal
Maximums)
<=
span
style=3D'mso-special-format:bullet;position:absolute;left:-4.43%'>•<=
/span>Total
security limits, including pets:
•Unfurnished =3D 2 months
•Furnished =3D 3 months
<=
span
style=3D'mso-special-format:bullet;position:absolute;left:-4.43%'>•<=
/span>Legal
deposits including:
–Waterbed (or insurance)
–Pet Deposit
–Key Deposit
![](3D"slide0007_image017.gif")
RENTAL TERM CHANGES
1.Sublease:&nb=
sp;
A transfer by the lessee of only part of his interest to
another (sub-lessee) at the time of the sub-letting
LESSOR
Leases
to
LESSEE
“A”
Who
sublets to
SUB-LESSEE
“B”
Who pays
Lessor $1,000
LESSEE “A”
<=
/b>
Sandwich
Pays Lessee
$2,000
![](3D"slide0008_image018.gif")
![](3D"slide0008_image019.gif")
![](3D"slide0008_image020.gif")
![](3D"slide0008_image021.gif")
![](3D"slide0008_image022.gif")
![](3D"slide0008_image023.gif")
RENTAL =
TERMS
CHANGES (cont’d)
2.ASSIGNMENT:
holds=
at
the time of the assignment
3.&=
nbsp;
NOVATION =3D NEW
A new agreement by new parties for new agreements<=
/span>
![](3D"slide0009_image024.gif")
LESSOR
Leases
to
LESSEE “A”
Who assigns
Lease to
ASSIGNEE “B”
ASSIGNEE “B” pays dire=
ctly
to LESSOR
Important Leasing Terms
•Extension of a lease is the
continuation of an old lease
•Renewal – Lessee and less=
or
negotiate a new lease
<=
span
class=3DBB style=3D'position:absolute;left:-3.96%'>•Escala=
tor
clause – allows lessor to raise rent under certain conditions.=
TYPES OF LEASES
1.Gross Lease
•Landlord pays
operating expenses (Utilities, taxes, insurance, maintenance)
2.Net Lease
•Tenant pays oper=
ating
expenses (Utilities, taxes, insurance,
maintenance)
3.Percentage Lease
•Tenant pays rent=
based
on tenant’s gross income
•The greater the
tenants gross sales, the smaller the %
•The smaller the
tenants gross sales, the larger the %
4.Fixed lease (Month-to-Month)
•Tenant pays a fi=
xed
rent amount
5.Graduated Lease (Lease)
•Tenant pays a fi=
xed
rent amount for the period with periodic
rent increases at specific times
UNLAWFUL
ACTS BY A LANDLORD
1.Tenant lockout
=
;
2.Seizure of tenant
property
3.Removal of doors a=
nd
windows
4.Shutting off utili=
ty
services
5.Causing
uninhabitability
6.Interfering with
tenant’s use and quiet enjoyment
![](3D"slide0012_image025.gif")
Landlord Duties and Rights
•Keep property habitable (implied
right)
•Periodically inspect the
premises
•Insure outside of living quarters
=
•Maintain quiet use and enjoyment
<=
/span>
•Prohibit discrimination by all subordin=
ates
THE
CALIFORNIA FAIR EMPLOYM=
ENT
AND HOUSING ACT (FE=
HA)
•Prohibits Housing Discrimination Based on:
1.Race
2.Religion
3.National Ancestry
4.Sex
5.Martial Status
6.Physical H=
andicap
![](3D"slide0016_image027.jpg")
Landlord may terminate tenancy with 30 day
written notice and need=
not
give reason
TENANT
OBLIGATIONS
=
3. Keep
the premises occupied, clean and sanitary
=
4. Liable
for negligence to others
<=
span
style=3D'font-size:75%'>7.Right
to use and enjoy property, if interfered with, tenant may vacate property without paying further rent. K=
nown
as constructive eviction
<=
span
style=3D'font-size:75%'>8.Refrain
from willfully or wantonly destroying, defacing, impairing or removing any part of the structure or=
appurtenances
=
9. Occupy
and use the premises only for the intended or designed use
REPAIR & DEDUCT
•<=
/span>Notify landlord of necessary repairs
•<=
/span>If landlord refuses:
–Abandon the property w/ no fu=
ture
rent
–Spend up to one month’s
rent on repairs, send receipts for repairs, offset amount =
on
next month’s rent payment.
•NOTE: Can only u=
se use
twice in any 12 month time
• Cannot be used for decorati=
ve
purposes, only for habitability.
SPECIAL
RULES FOR MOBILE HOMES
•<=
/span>Lease must be written
•<=
/span>Rental term 12 months unless homeowner desires shorter term or mutual agreement on longer term=
3;
•Landlord may terminate only for specific reasons
![](3D"slide0013_image029.gif")
RENT CO=
NTROL
•<=
/span>Intent is to make property available for rent at <=
/span>reasonable rates when there is a shortage of available space
•<=
/span>May not be effective because artificially low rent=
may increase demand and discourage new construction
![](3D"slide0014_image031.gif")
![](3D"slide0017_image032.gif")
THE
EVICTION PROCESS
Landlord
serves tenant =
with notice terminating
tenancy of =
rent. Typically
a 3 day n=
otice <=
span
style=3D'font-size:50%'>to pay rent or
quit.
If
tenant does not pay or otherwise comply,
landlord files lawsuit. (Unlawful detainer)
Typically
tenant has =
5 days to respond
to lawsuit
Tenant
files answer to lawsuit
Trail
date is set =
within 2 to 3
weeks
Case
is tried before a judge or jury
Ruling
in favor of tenant
Tenant
remains in possession of premises
Ruling
in favor of landlord for possession
and rent
Tenant
files petition in bankruptcy creating
automatic stay. <=
/span>Can be filed at anytime delays eviction
process 3-6 weeks<=
/span>
TENANT VACATES
PREMISES
Tenant
fails to respond
Court
issues default judgment
Within
7-15 days county marshal posts notice
to vacate on <=
/span>tenants door
Tenant
does not voluntarily vacate
by required date
Marshal’s
lockout forcibly removes =
tenant, landlord changes locks and regains possession
After
judgment 3rd party claim of right to possession can be filed (arrieta) 2-10 days delay of lockout
![](3D"slide0017_image033.gif")
![](3D"slide0017_image034.gif")
![](3D"slide0017_image035.gif")
![](3D"slide0017_image036.gif")
![](3D"slide0017_image037.gif")
![](3D"slide0017_image038.gif")
![](3D"slide0017_image039.gif")
![](3D"slide0017_image040.gif")
![](3D"slide0017_image041.gif")
![](3D"slide0017_image042.gif")
![](3D"slide0017_image043.gif")
![](3D"slide0017_image044.gif")
![](3D"slide0017_image045.gif")
![](3D"slide0017_image046.gif")
![](3D"slide0017_image047.gif")
![](3D"slide0017_image048.gif")
![](3D"slide0017_image049.gif")
![](3D"slide0017_image050.gif")
![](3D"slide0017_image051.gif")
30 day n=
otice
of termination of tenancy
Small cl=
aims
court – up to $5,000 on residential
Municipal
court – Use of attorneys
TERMINA=
TION
OF A LEASE
1.Expiration of
the term
2.Mutual
agreement (surrender)
3.Violation of terms and conditions
4.Destruction of
the premises
•Or government
action: condemnation
5.Breach=
of
terms
a.Notice
b.Unlawful detainer action
c.Non-payment of rent
d.Illegal use of premises
e.Sheriff serves the eviction
![](3D"slide0010_image053.gif")
PROPERTY
MANAGER
<=
span
style=3D'font-size:88%'>•Maintains
property by keeping it in repair and modernizing
or renovating when needed
<=
span
style=3D'font-size:86%'>–for reside=
ntial
apartments of 16 or more units.
and agreed amount per month
![](3D"slide0015_image055.gif")
![](3D"slide0022_background.gif")
![](3D"slide0022_image056.gif")
![](3D"slide0022_image057.gif")
HURRAY!
CLASS IS OVER, LET’S GO
HOME
' + ENDSHOW_MESG + '
![](3D"notes_flag.gif")
No=
tes![](3D"buttons.gif")
![](3D"slide0018_image012.jpg"){kind=link}
![](3D"slide0016_image026.png"){kind=link}