INFORMATION ABOUT
LANDLORD-TENANT RELATIONSHIPS

A landlord-tenant relationship exists when, as part of an agreement, the landlord provides the tenant with living space in exchange for rental payments from the tenant.

We hope that the questions and answers presented here will assist you in familiarizing yourself with Landlord-Tenant issues and terms. While the material below attempts to answer common questions in this area, State and local laws may significantly modify the facts set forth. Because all legal problems are unique, nothing provided here is a substitute for the advice of competent counsel. We strongly urge you to consult with an attorney licensed to practice in your state about any particular legal problem you may have.

WHAT IS A LEASE?

A lease is an agreement between the landlord and the tenant that sets forth the particulars of the tenant's use of the property. The lease defines how long the of the tenant is entitled to possession of the property, the rent to be paid, responsibilities for taxes, utilities, maintenance and the like, limitations on the types of use for the property, legal rights and remedies available to both parties in the relationship and so forth. In essence, the lease is the agreement that forms the basis of the relationship between the landlord and the tenant. This is seen as a contract between the parties. Federal, state and local laws control other aspects of the relationship, and may impose other duties on the parties that are not contained in the lease. For example, under Federal law, a landlord may not discriminate against tenants with regard to race.

Both the landlord and the tenant benefit from having the lease in writing. Either party may negotiate for any terms or other particulars he or she may want in the lease before it is signed. However, once both parties sign the lease, it is a legally binding document. If a conflict later arises between the parties regarding the property that must be decided in the courts, the court will look to the lease to determine the parties' agreement as to their respective rights and obligations. Therefore, it is very important that each party read and understand the lease before it is signed.

WHAT ARE MY RIGHTS AS A RESIDENTIAL TENANT?

First and foremost in many states, the residential tenant is protected by the implied warranty of habitability. "Habitability" means that the leased premises must meet those minimum standards to make it safe for the tenant to live there. For example, a dwelling must have heat in the winter, drinkable water, sanitary and safe conditions. This warranty exists no matter what the lease says. If the warranty is breached, the tenant may be able to withhold the rent or pay it into an escrow account until the conditions or problems are remedied. In extreme or prolonged situations, the tenant is able to terminate the lease agreement. Defects and unappealing cosmetic problems which do not affect the habitability of the premises, such as squeaky door or old carpeting, are not covered by the warranty of habitability. However, the tenant may be able to force the landlord to correct these conditions if the repair or replacement of such defects were negotiated terms in the lease.

Residential tenants in many states are also entitled to the benefit of the covenant of "quiet enjoyment". This is the right of the tenant to fully use and enjoy the premises within the terms and conditions of the lease, without interference or disturbance from the landlord or anyone acting on her/his behalf. This does not mean, however, that the landlord is necessarily responsible for the acts of others that the landlord cannot control.

DOES A SUBLESSOR HAVE ANY RIGHTS AGAINST THE LANDLORD?

As a general rule, if the sublessor and the landlord both signed the sublease, the sublease constitutes a valid contract. In that case, any rights which the sublessor are granted under the sublease are generally held up in a court of law. Hence, to determine a sublessor's rights, you must refer to the written sublease itself.

WHAT IS A SECURITY DEPOSIT?

Before the tenant takes possession of the property, the landlord generally requires that the tenant pay an additional amount of money as a security deposit. The purpose of this money is to cover any losses the landlord may incur if the tenant breaches the lease or physically damages the property. In Pennsylvania, for example, the collection, holding and return of this security is controlled by statute, the provisions of which cannot be changed in the lease. Since each state has its own rules relating to the return of security deposits, you should certainly consult with the local laws to see what is required in your state.

Pennsylvania law provides that a landlord may not legally require a security deposit in excess of two (2) months rent for the first year's lease. For every year after the first year, a deposit equal to one month's rent is all that may be required. After two (2) years, deposited funds in excess of $100.00 must be placed in a separate account, in an institution regulated by Pennsylvania or by federal authorities and the landlord must notify the tenant, in writing, of the name and address of the depository and the amount of the deposit. Within thirty (30) days after the termination of a lease, or upon surrender and acceptance of possession of the premises, the landlord is obligated to provide the tenant with a written list of any damages. The landlord may deduct the amount to fix the damages and return the balance of the escrow monies, if any, to the tenant. This reimbursement is not required if the landlord claims nonpayment of rent or other material breach of the lease. Any interest earned on the security deposit must be paid to the tenant at the termination of the lease, after the landlord deducts up to the allowable one percent (1%) administration fee.

Other states have different laws concerning security deposits and some states have no statutes at all on this subject. If you have a dispute with your landlord over the amount or return of a security deposit, you must check your local law to find out what rights you have.

WHAT ARE THE LANDLORD'S DUTIES?

In addition to any obligations imposed upon the landlord in the lease, the landlord assumes the obligation of keeping the structural and mechanical elements of the premises in good repair, particularly the common areas. The exception to this obligation is when the tenant is in possession and control of the entire property.

The landlord may not restrict the right of the tenant to invite people into the premises for business, family or personal reasons. However, the landlord may add reasonable rules and regulations regarding the tenant's use of the premises to the lease. Further, the tenant may be responsible to the landlord if a guest of the tenant damages the landlord's property.

The landlord may not restrict the right of tenants to organize a Tenant's Association. Further, a landlord may not engage in any retaliatory conduct against his tenant for participating in a tenant's association.

HOW CAN THE LANDLORD/TENANT RELATIONSHIP END?

Most leases provide that either the landlord or tenant may end the landlord/tenant relationship by giving the other party written notice that the lease will not be renewed. The lease normally sets forth how many days notice must be given before the lease ends in order to be effective. The relationship may end before the end of the lease term if both parties to the lease agree to terminate the relationship, if outside events such as a fire destroy the leased premises, or if one or both of the parties breaches the terms and conditions of the lease. The rights and remedies of either party in these situations is dependent on the nature and cause of the termination and the provisions of the lease.

DO I NEED AN ATTORNEY?

Although some landlords and tenants negotiate the lease terms on their own, many parties want an attorney to represent them in negotiating and preparing a lease. Similarly, both parties generally wish to have legal representation if litigation is inevitable.

HOW IS MY ATTORNEY PAID?

Your lawyer will probably want to be paid an hourly fee plus costs for preparation of documents and/or negotiating on your behalf. Some attorneys may agree to a fixed or flat fee for court appearances on your behalf. Depending on the circumstances of your case, you and your lawyer may agree on a different arrangement. You should, however, discuss with your lawyer what his or her fee will be for representing you at the very beginning of your case and you should insist that your lawyer set forth in writing the fee arrangements before any work is performed on your case.

DESSEN, MOSES & ROSSITTO is happy to assist you in any legal matter that involves either Pennsylvania or New Jersey, the two states in which our attorneys routinely practice. If you have other questions or comments about the Landlord-Tenant area, or any other area in which we practice, please send us an E-mail message with your questions or comments and we will be happy to try to assist you.

LINKS TO OTHER INTERESTING INFO

Department of Housing and Urban Development
Home Buyer Real Estate Service
Home Scout Internet Real Estate Search Directory
Homebuyers Fair - Real Estate Sales & Financing
Insurance Information Institute
Multi-Family Foreclosure Rules
Residential Real Estate for Sale by State

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INFORMATION ABOUT LANDLORD-TENANT RELATIONSHIPS