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off-campus housing services
Section 2: Signing Your Lease
Part 1: LEASE BASICS
A Lease is an agreement between landlord and tenant to transfer possession of property to the tenant for a certain period of time in exchange for rent payments. Leases may be verbal or written. Arizona law does not require a written agreement for a rental under one year, but there are advantages to having your rental agreement in writing.
Written leases offer protection by giving both tenant and landlord a permanent record of their agreement. Even month-to-month rental agreements can be made in writing. A written lease fixes all terms of the agreement so that no changes can be made for a given period of time. All obligations are set out clearly, rent cannot be increased during the period, and tenants may not be evicted unless they violate a term of the lease.
Sounds good, yes? That depends. If you have to move before the end of the period, you may be liable for the entire period. Be sure to read the lease carefully before you sign. Whether you have an oral or written agreement, when you plan to move out, you must give written notice, usually at least 30 days before the agreement ends. Written leases are binding contracts that are difficult to break once signed. You should understand and be comfortable with ALL provisions of a lease before signing.
Oral agreements have the advantage of being less formal than a written one. Unless the agreement is for a certain term (three months, six months, 20 minutes), it is considered a month–to–month agreement, and you can move out with proper notice (30 days on or before your periodic rental date if hand delivered, 35 days if notice is mailed registered or certified).
The disadvantage of a verbal contract is the lack of clarity. If you end up in court, it is your word against theirs. If your agreement is a month-to-month agreement, the landlord can raise your rent or evict you with proper notice (30 days on or before periodic rental date).
PART 2: PRE-LEASE AGREEMENTS
In order to hold a space for you in their complex, many landlords will ask you to sign a “pre-lease agreement.” We do not recommend entering into this type of agreement with a landlord. You might find yourself bound by contract to a lease before you are really ready to commit.
PART 3: BEFORE YOU SIGN THE LEASE
Landlords usually ask for a security deposit at the time the lease is signed. You may be asked to pay the last month’s rent as well. Regardless of what it is called in the lease or rental agreement, any sum you pay the landlord to hold as security for damages to the premises or unpaid rent is considered “security.”
Here are some important facts to know about deposits:
1. The total amount of such charges cannot be more than one and one-half month’s rent.
Example: Monthly rent is $350. The lease calls for a $175 security deposit, and last month’s rent of $350. The total security charged is $525. Since this equals one and one-half month’s rent, it is an acceptable amount under the law.
2. Cleaning and redecorating charges are not part of the security deposit. But if those charges are nonrefundable, the landlord must state that fact in writing. If it is not in writing, these charges cannot automatically be withheld when you move out.
Example: Your lease specifies a security deposit and a cleaning deposit. However, the lease does not say that the cleaning deposit is “nonrefundable.” When you move out, you clean the place thoroughly, but the landlord does not return the cleaning deposit. In order to legally withhold the cleaning deposit in this situation, the landlord must treat it as any other security deposit and give you a written, itemized statement of the amount spent for cleaning your former residence. (See the excerpt of the law for a complete description of the law concerning the return of security deposits.)
3. Make sure the charges you pay at the beginning of your tenancy are clearly explained in your lease or rental agreement.
Example: Your lease specifies a security deposit of $350, which is equal to a month’s rent. When you sign the lease, the apartment manager tells you that you can use the security deposit in lieu of your last month’s rent. However, the written lease says nothing about this arrangement. In this case, insist that the lease be changed to reflect this agreement. If you do not, and you later get into a dispute about this provision, the written lease provision will probably determine the outcome.
Part 4: TYPES OF LEASES
Written Monthly Agreements
Written monthly agreements contain the amount of rent and any rules and regulations. This clarifies the rules by which a tenant must abide. It also helps to avoid disagreements and misunderstandings on landlord or tenant promises. The disadvantage is that the landlord can raise your rent, terminate your tenancy or change any of its terms with a written notice delivered to you at least 30 days before your next periodic rental date. The tenant can terminate this type of agreement the same way. Refer to Sample Letter #3, “Notice of Termination for a Month-to-Month Rental Agreement.”
Joint & Several Liability
Under most leases, roommates are jointly and severally liable for the lease. This means any one roommate can be held responsible for the actions of any or all other roommates. Any or all roommates can be sued for the damage done by one roommate. And all roommates can be evicted if one roommate fails to pay the rent. (YIKES!)
So, before you sign a lease, make sure potential roommates are responsible and able to pay their share of rent and other expenses. To protect themselves, roommates should make some sort of written contract between themselves to determine what will happen if one roommate decides to leave. For an example see the Roommate Contract.
Separate Leases
Roommates with separate leases have a relationship comparable to that of tenants who live in separate apartments in the same building, including higher rent. The landlord is directly responsible for resolving serious problems between roommates, either by working with them directly or serving an eviction notice to any roommate who violates the lease. Since everyone has a separate lease, other roommates don’t have to worry about being evicted along with the rotten apple, nor do they have to make up rent payments or fill that roommate’s place. Although the issue is between the tenant and the landlord, it’s still a good idea to document serious problems (click for more on Roommates).
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Your Lease SHOULD:
- state lease beginning and ending dates
- show amount and type of deposit (no more than 1-½ x the rent)
- list name of the owner
- list name of manager or person authorized to receive notices
- state the rules for behavior (may be on a separate document provided for you— remember, you can be evicted if you do not abide by the landlord’s rules)
- state who’s responsible for payment of utilities—you or the landlord?
Your lease should NOT:
- disagree with the Arizona Residential Landlord and Tenant Act (see excerpt)
- contain any provision in which you agree to waive any right or remedy under the AZ Residential Act
** Take a copy of your lease to ASUA Legal Services and have it reviewed before you sign it.
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