Leases

The terms of any rental agreement are stated in the lease, which can be an oral agreement or a written document. There are two general types of leases-periodic leases and term leases. A periodic lease continues for a specific time period and is automatically renewed at the end of the period for an indefinite time without a specific end date. For example, parties may agree on a month-to-month lease without specifying how many months the renter will stay and the lease continues until one party terminates it. Most periodic leases will state the timing of a termination notice and the form the notice must take. If the periodic lease does not specify when or how notice is to be given, state law requires that notice be given at least one full rental period plus one day before the lease ends.

A term lease is a rental agreement specifying a definite time period. For example, a lease for one year is a term lease. Term leases are almost always written. If they are for more than one year, the law requires that they be in writing. If the parties to the lease do not state when and what kind of termination notice is required, the lease automatically ends on the last day of the time period.

Landlords have a right to insist that renters pay a security deposit before moving in. The security deposit is used to pay for any damage beyond ordinary wear and tear that the tenant might do to the rental property, or to satisfy any debts between the tenant and landlord under an agreement or any unpaid rent. The deposit cannot be used by the renter to pay rent. There is no limit to how much the landlord can require for a security deposit. The landlord can increase the security deposit at any time during a periodic lease if the tenant is given proper notice-generally, one rental period plus one day. If the lease is a term lease, no changes can be made to the deposit until the lease comes up for renewal or the parties agree otherwise. At the end of the tenancy, the landlord must return the deposit to the renter with interest (four percent non-compounded per year). The landlord is allowed to keep the amount necessary to repair damages, or to pay off debts owed to the landlord as part of the lease. If the landlord fails to return all or part of the security deposit, he or she must give the tenant, within 21 days after the tenancy ends and the tenant has given the landlord a forwarding address, a written explanation as to why money is being withheld.

Owners of rental property are required to keep the property in reasonable repair. This requirement cannot be waived by the parties, but the tenant can agree to make repairs or perform maintenance if the arrangement is in writing and the tenant receives compensation in return. For example, a renter might agree to make routine plumbing repairs in return for a reduction in rent or payment from the owner. If the owner refuses to make repairs, the renter has five options.