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Lapeer County Information Depot

What is a Lease?

Leases contain a variety of legal terms:  there are a few terms with which you should be familiar in order to understand a leasing situation.  A Landlord is a person or business firm in control of property who allows others to occupy and use it.  An landlord may be the owner, an agent or employee of the owner, or a management company.  A Tenant (renter) is a person who occupies and uses property owned by someone else.  A tenant's right to occupy and use land or buildings is called a leasehold or lease.  The term "lease" is also used to mean the rental agreement that creates the leasehold.  A rental agreement is the contract between landlord and tenant.  Generally, such a contract governs the tenant's use and occupancy of rental property and provides for the payment of rent.  Rental agreements may be written or oral as long as there is some type of agreement between the landlord and the tenant.  A plaintiff is a person who complains or sues in a civil action to seek judicial relief for some injury to his or her rights.  A defendant is the party against whom relief or recovery is sought in an action or lawsuit. 

Rights And Responsibilities

Landlord

The landlord has a right to receive rent on time, to expect that the property will not be damaged or used for illegal purposes, and to receive payment for damages from the tenant at the end of the lease.  The landlord has the right to expect that the tenant will not create a nuisance and will abide by the responsibilities contained in the lease agreement. 

When the landlord and tenant agree to a specific amount of rent for a specific period of time, that agreement remains in force during that period of time unless both parties agree to something else.  In the case where a tenant vacates a rental unit before the end of the lease period, the tenant may continue to be liable for rental payments.  If a tenant leaves without giving timely notice, he/she may be held liable for additional rent payments because notice was not given at all or was insufficient.  The tenant may owe rent for the full term of the lease; that could be a number of months, payable according to the terms of the lease.  (The landlord must, however, make a good faith effort to re-rent the property and thereby mitigate the damages for the tenant.)  The tenant may also, in some instances, be held liable for advertising costs to find a new tenant. 

Where there is no lease spelling out the period of the tenancy, a landlord is entitled to 30 days' notice of the tenant's intent to vacate the premises.  Generally, the timing of this notice depends on the length of the rental period.  If the agreement is for monthly rent, a month's notice should be given.  If the rental period is a week, a week's notice is usually sufficient, and so on. 

The landlord also has maintenance rights.  These include access to the unit to inspect and repair at reasonable intervals (with notice to the tenant) and in times of emergency.  In addition, the landlord has recourse to court procedures to evict and sue tenants who cause damage to the property through action or neglect. 

On the other hand, the landlord has maintenance responsibilities.  The landlord must provide as safe and habitable dwelling, comply with state and local laws and carry out repairs that are not the fault of the tenant.  The landlord is also required to return the unclaimed portion of the security deposit.  The landlord's specific duties and responsibilities area very important and basic part of a lease.  Before entering into either a written or oral lease, these rights and responsibilities should be clearly understood by both parties. 

Tenant

The tenant has the right to "quiet enjoyment" of the rented premises, to timely repair and maintenance of the premises, to receive a written notice as provided by law, to the return of the unused portion of the security deposit, and to expect that the landlord will discharge the responsibilities contained in the lease agreement.  Also, the tenant has the right to remain in the rental unit if the landlord sells it, unless there is a "condition of sale" clause as part of the lease arrangement.  This holds until the expiration of the lease agreement.  The new landlord must abide by the terms of any existing lease. 

A tenant generally is expected to make timely rental payments and other agreed-upon payments to keep the property in good condition, and not to engage in actions that are illegal or bothersome to others.  A tenant can be charged late fees for missing deadlines on the payment of rent, but the late fees can only be an amount to recover the landlord's cost, rather than being some type of penalty.  Again, the written or oral lease will usually contain the tenant's specific duties and responsibilities.  Also, the tenant is required to inform the landlord of necessary repairs. 

Evictions

Eviction is the legal process used by landlord to remove a tenant from the rented premises with or without the consent of the tenant.  The landlord may want the tenant evicted if the tenant's conduct includes any of the following: 

1. nonpayment of rent;
2. damage to property;
3. causing a "serious and continuing" health hazard;
4. engaging in illegal activities related to controlled substances;
5. engaging in illegal activities no related to controlled substances;
6. violation of the terms of the rental agreement (lease);
7. failure to vacate the premises after the lease expires; and
8. failure to vacate the premises after the landlord has given timely notice to terminate the lease. 

If a tenant is renting under either a fixed-term or a periodic tenancy and the landlord wishes to evict for reasons 1, 2, or 3 above, it may be done with a seven-day notice to quit.  This eviction notice gives the tenant seven days to either correct the situation or move.  In those instances where the illegal activities relate to controlled substances, and the lease specifically prohibits such activities, or for violations of the terms of the rental agreement, a seven-day notice to quit may be used.
NOTE:  Regarding damage to the property or presence of a serious and continuing health hazard, if there is a major violation of the local housing or zoning codes, the city may condemn a structure.  Such action would force the tenants to vacate, but if the violation was not caused by them, they would be allowed to sue for money damages (i.e., moving expenses or temporary shelter). 

Evictions Under a 30-Day Notice to Quit (for other than seven days)

A notice to quit is also a mechanism used by a landlord to evict a tenant who is creating a nuisance or otherwise violating the terms of a lease.  It is used when a landlord wishes to regain possession of a rental unit for other purposes, such as remodeling, at the end of a rental period or the expiration of a lease.  At this point, the tenant is obligated  to vacate the premises unless he or she can prove that the notice to quit was issued in retaliation for some action which the tenant is legally permitted to do, such as joining a housing cooperative or placing rent in escrow and giving proper notice to the landlord until necessary repairs are made. 

Such uses include notice of termination of tenancy for reasons 5, 6, 7, or 8 stated previously.  A tenant who rents a periodic tenancy can be evicted for any of the foregoing reasons as long as it is not retaliatory or discriminatory.  The notice must be in writing  and give the tenant at least one rental period's time, usually 30-days. 

Keep in mind that in each of these situations, a tenant has a right to a court hearing before any actual eviction takes place.  A judge or, at the request of either party, a jury decides if the tenant must move, not the landlord. 

Eviction Timetable

1. Landlord provides a notice to quit (seven-day, 3-day, or an amount of time equal to the rental period) to the tenant.
2. After the required waiting period, the landlord may file a complaint with the district court, whereupon the court shall deliver or mail to the tenant (defendant) a summons to appear before the court on a certain date.
3. At the court hearing, if he tenant wins, the tenancy continues.  If the tenant loses, he or she has ten days to pay the past due rent, settle the dispute, or vacate the premises. 
4. After ten days (or by the date set by the court), if the tenant has not vacated, a writ of restitution is issued by the court commanding the sheriff or other authorized court officer to serve the process and restore the landlord (plaintiff) to full possession of the premises.