Chapter 9 The Landlord Tenant Relationship residential focus Introduction This chapter introduces general landlord tenant law with a focus on residential Relevant to everyone especially college students Type of property interest Leasehold non freehold present possessory We will cover Types of tenancies Some of the key terms and provisions Some of the key rights and obligations Slide 2 Ch 8 Slide 2 Types of tenancies Types of tenancies defined by lease term duration Tenancy for years Periodic tenancy Fixed beginning and ending ends automatically No ending date repeating periods until notice to end Period typically coincides with rental period payment Requires notice to end up to full period CO 7 days for mo to mo Termination occurs at the end of the period not mid period Tenancy at will Terminable upon immediate notice impractical Often minimum notice required per statute CO 3 day s notice cf periodic tenancy notice Tenancy at sufferance Holdover tenant w out landlord objection rent new tenancy Slide 3 Ch 8 Slide 3 Wilson v Fieldgrove Facts Lessee under oral year to year cash farm lease dies heir continues farming term March Feb landlord notifies tenant of termination on 2 20 effective 3 1 tenant files notice of leasehold prior to landlord s sale landlord sues for slander of title TC ruled for tenant finding landlord failed to provide 6 month notice Issue Did death terminate lease or did lessor owe 6 month notice Holding Death didn t terminate lease lessor owed 6 month notice Rationale Unlike share crop lease which are contracts for personal services cash lease survives death of lessee and both rights and obligations continue Rule of law Death of cash farm lease tenant does not terminate lease year to year farm lease requires minimum 6 month prior notice to quit otherwise the lease continues for another year season Slide 4 What about the buyer did he she have notice Ch 8 Slide 4 Written lease agreements Statute of frauds Leases 1 year must be in writing formal lease E g emails or other correspondence which contains the essential terms may suffice E sign and e version leases enforceable Essentials four P s parties signatures premises description period term payment rent Leaseholds very complex so leases can be very complex Very expensive valuable Not a one time transaction a daily transaction lasting years Lease are a combination of an instrument of conveyance and an ongoing contract Slide 5 Ch 8 Slide 5 Landlord s duty regarding condition Historic common law no duty upon landlord concerning the condition of the property lease at your risk Based on agrarian society and rural leases Today duty imposed upon residential landlord by case law or statutory law implied warranty of habitability with remedies available to tenants under several legal theories Constructive eviction affirmative defense requires duty breach so sever it renders property un tenantable notice opportunity to cure vacate voids terminates lease Self help tenant makes repairs and deducts from rent setoff requires duty breach notice opportunity to cure not vacate residential leases maybe commercial leases not usually Equitable relief make the landlord fix the problem Slide 6 Ch 8 Slide 6 Bender v Green Facts Bedbugs withheld rent setoff FED eviction tenant claims affirmative defense of breach of IWH is this constructive eviction IWH landlord warrants the premises fit for human habitation and occupants not subjected to conditions that are dangerous hazardous or detrimental to life health or safety however does not apply if caused by misconduct of occupants Issue Do bedbugs breach of IWH Holding rationale Bugs detrimental to health safety breach What about landlord s efforts and misconduct exception Court limited damages finding credibility issues with tenants Rule of law Landlord strictly liable absolute for conditions in the premises cf typically only reasonable actions required Cf Consider 9 1 Tenant sues for personal injuries IWH does not impose Slide 7 duty for a cause of action for personal injuries Tort liability Ch 8 Slide 7 Deposits Security deposits Security for overall performance by tenant not just rent Not normal wear and tear that which occurs based on the intended use without negligence carelessness accident or abuse Required accounting to tenant CO 30 days or up to 60 per lease May be state or local law requirements re interest trust account Cleaning deposits Refundable or non refundable Pet deposits or smoking etc Pets smoking etc result in excess wear and tear Typically non refundable form of liquidated damages Prepaid rent e g first last month s rent Protect landlord at end of lease how Slide 8 Ch 8 Slide 8 Furlan v Farrar Facts Oral lease 800 rent 800 deposit no end date and dispute re commencement 9 1 vs 10 1 tenant attempts to cancel on 10 6 w out having taken possession landlord rejects but prohibits possession tenant sues for return of 800 TC finds lease commenced 9 1 and awards landlord rents thru 10 6 ad costs Issue What rents and other damages are owed Holding M to m starting 9 1 rents owed 9 1 10 6 Rationale No specific end w monthly rents m to m but 30 day notice N A due to landlord s refusing possession Rule of law Oral lease without specific term and rents paid monthly month to month lease with rents due first of month landlord s prohibiting possession excused 30 day notice requirement for termination of mo to mo lease Slide 9 Ch 8 Slide 9 Rents Leases and rents Amount Adjustments type Due date Late charge interest Rent control cities regulate max rents 2 3 of apts in NY SF rent controlled Rents for remaining apts more than 2x Non rent controlled apts in poor shape waiting lists Little turnover in rent controlled apts fraud Many rent controlled apts being converted Slide 10 Ch 8 Slide 10 Lease term Type defines term tenancy for years periodic tenancy etc Normally the leasehold ends at the end of the term Options to renew extend benefits tenant penalizes landlord Specify rents and other terms Renew vs extend Renew new lease can result in loss waiver of claims Extend continuation of existing lease Slide 11 Ch 8 Slide 11 Landlord s damages remedies Attorney fees and other costs of collection must be expressly recoverable per lease still may not recover Landlord s duty to mitigate damages Landlords accelerate the future rents can only collect what s due CO Landlord s damages is the amount to put landlord in the position it would have been had the breach not occurred after giving effect to the