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Do you own real estate that can be rented to tenants? Whether you are an apartment landlord, leasing commercial property or renting a room in your home, you should know some basic facts about real estate leases. This article explains the ABCs of real estate leases so that you can make informed decisions about your property and the rights and rules that will govern your relationship with your tenants. In the future, we will explore in detail various types of real estate leases, such as commercial leases, apartment leases and residential leases. This article focuses on the basic real estate lease.

What’s a Real Estate Lease?

A real estate lease is a written agreement between a Landlord and a Tenant establishing the rights and responsibilities of each party. The Landlord is the owner of the real estate (also known as the "premises") who rents that property to a Tenant for the Tenant's use. A "residential" lease applies to real estate used as a residence, while a "commercial" lease applies to business property.

What are the Responsibilities Landlords and Tenants?

Although the Landlord's exact responsibilities may vary from state to state, the Tenant can expect the Landlord to perform certain responsibilities that are imposed by state or local law. These responsibilities may be voluntarily increased or clarified by the terms of the lease agreement, but cannot be escaped. For example, the Landlord generally must provide the Tenant with "quiet enjoyment" of the property, and maintain safe and healthy living conditions (in the areas under the Landlord's control). The Landlord must also ensure that the property complies with all health and safety building codes, must keep the premises in good repair, must maintain all electrical, plumbing, and heating facilities (if such services are supplied by the Landlord), must keep all common areas safe and clean, and usually must provide certain types of services such as adequate heat, running water, and trash collection services.

Virtually every state prohibits the Landlord from escaping these basic responsibilities, despite the Landlord's attempts to do so by inserting escape language in the lease agreement. Any such lease provisions are usually unenforceable. Furthermore, the Tenant may have the right to withhold rent and/or to "repair-and-deduct" as necessary to remedy a problem. On the other hand, it is not uncommon for the Landlord to delegate minor repair responsibilities to the Tenant, especially in a single-family dwelling lease.

Although a tenant's responsibilities may vary by state, tenants generally must: keep their portion of the property in reasonably clean and healthy condition (including the deposit of garbage in the appropriate receptacles); not abuse or damage the building, furnishings, or appliances; not interfere with others' quiet enjoyment (including offensive noise, odors or activities); and not allow or participate in illegal activities on the property.

When is a Real Estate Lease Agreement Necessary?

A written real estate lease contract should be prepared and signed whenever property is rented to reduce the likelihood of misunderstandings between the Tenant and the Landlord regarding the rental arrangement.

RocketLawyer.com provides standard leases that contain a comprehensive set of provisions and options. For basic real estate leasing situations, the Quick Form Lease automatically includes many of the common lease provisions that most users would select if given the choice, and therefore is designed for easy use.

Labels: apartment, commercial lease, lease agreement, lease contract, real estate, real estate lease, real property, rental contract, rental property, residential lease