Rental Agreements and Leases

General Information

Before you decide on a rental unit, there are several other points to consider. For example: Is an oral rental agreement legally binding? What are the differences between a lease and a rental agreement? What are some of the advantages and disadvantages of each? These and other questions are answered in this section.

Before you can rent a unit, you and the landlord must enter into one of two kinds of agreements: a periodic rental agreement or a lease. The periodic rental agreement or lease creates the tenant’s right to live in the rental unit. The tenant’s right to use and possess the landlord’s rental unit is called a tenancy.

A periodic rental agreement states the length of time between the rent payments - for example, a week or a month. However, a periodic rental agreement does not state the total number of weeks or months that the agreement will be in effect.

A periodic rental agreement that requires one rent payment each month is a "month-to-month" rental agreement, and the tenancy is a "month-to-month" tenancy.If the periodic rental agreement requires that rent be paid once a week, it is a "week-to-week" rental agreement, and the tenancy is a "week-to-week" tenancy. In effect, the rental agreement expires at the end of each period for which the tenant has paid rent, and is renewed by the next rent payment. The tenant can continue to live in the rental unit as long the tenant continues to pay the rent, and as long as the landlord does not ask the tenant to leave.

In a periodic rental agreement, the period between rent payments determines three things:

How often the tenant must pay rent;
How much notice the tenant must give the landlord if the tenant decides to leave; and
How much notice the landlord must give the tenant if the landlord decides to change the terms of the rental agreement or not renew the rental agreement.

Oral rental agreements

In an oral rental agreement, you and the landlord agree orally (not in writing) that you will rent the rental unit. In addition, you agree to pay a specified rent for a specified period of time - for example, a week or a month. This kind of rental agreement is legally binding on both you and the landlord, even though it is not in writing. However, if you have a disagreement with your landlord, you will have no written proof of the terms of your rental agreement. Therefore, it’s usually best to have a written rental agreement.

It’s especially important to have a written rental agreement if your tenancy involves special circumstances, such as any of the following:

You plan to live in the unit for a long time (for example, nine months or a year);
Your landlord has agreed to your having a pet or water-filled furniture (such as a waterbed); or
The landlord has agreed to pay any expenses (for example, utilities or garbage removal) or to provide any services (for example, a gardener).
Any time that a tenant and a landlord agree to the lease of a rental unit for more than one year, the agreement must be in writing. If such an agreement is not in writing, it is not enforceable.

Written rental agreements

A written rental agreement is a periodic rental agreement that has been put in writing. The written rental agreement specifies all the terms of the agreement between you and the landlord - for example, it states the rent, the length of time between rent payments (the rental period), and the landlord’s and your obligations. It may also contain clauses on pets, late fees, and length of notice.

A written rental agreement does not state the total number of months or weeks that the rental agreement will be in effect. The month-to-month rental agreement is by far the most common kind of written rental agreement, although longer or shorter rental periods (for example, week-to-week) can be specified.

The length of time between rent payments is important. It determines the amount of advance notice that the landlord must give you before changing the terms of the tenancy (for example, increasing the charge for parking) or lawfully ending the rental agreement. The length of time between rent payments also determines how much advance notice you must give to the landlord before you move out of the rental unit.

For example, under a month-to-month rental agreement, both the tenant and the landlord must give at least thirty days’ advance written notice to end the rental agreement, and the landlord is required to give the tenant at least 30 days’ advance written notice of any increase in the rent.

A week-to-week rental agreement can be ended by seven days’ advance written notice.

The required notice period cannot be shorter than the length of time between the rent payments, unless the landlord and tenant have specifically agreed, in writing, to a shorter period. For example, the landlord and tenant might agree to a 10-day notice period in a month-to-month rental agreement. (Special rules in the cities of Los Angeles, Santa Monica and West Hollywood may not allow shorter notice periods.) The notice period can never be fewer than seven days, unless the landlord has a lawful reason to give the tenant a three-day eviction notice.

Leases

A lease states the total number of months that the lease will be in effect - for example,
6 or 12 months. Most leases are in writing, although oral leases are legal. If the lease is for more than one year, it must be in writing.

It is important to understand that, even though the lease requires the rent to be paid monthly, you are bound by the lease until it expires (for example, at the end of 12 months). This means that you must pay the rent and perform all of your obligations under the lease during the entire lease period.

There are some advantages to having a lease. If you have a lease, the landlord cannot raise your rent while the lease is in effect, unless the lease expressly allows rent increases. Also, the landlord cannot evict you during the period of the lease, except for reasons such as your damaging the property or failing to pay rent.

A lease gives the tenant the security of a long-term agreement at a known cost. Even if
the lease allows rent increases, the lease should specify a limit on how much and how often the rent can be raised.

The disadvantage of a lease is that if you need to move, a lease may be difficult for you to break, especially if another tenant can’t be found to take over your lease. If you move before the lease ends, the landlord may have a claim against you for the rent for the rest of the lease period.

Before signing a lease, you may want to talk with an attorney, legal aid organization, housing clinic, or tenant-landlord program to make sure that you understand all of the lease’s terms, your obligations, and any risks that you may face.




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