Rental Affairs: Understand your lease.

Introduction:

We chose our topic for this month as dealing with rental affairs due to the huge market it represents in each country.

We are not going to deal specifically with the Lebanese rent law, but with some general tips that could be applicable in any country and under any type of legislation.

We are going also to stress on the tenant's side because it is believed that he is the weak party of the deal, requiring some legal assistance.

We urge you, as a resident, or prospective resident, to read this lease guide. It is always better to be an informed resident than to make a mistake and learn afterward about the law.

As a start, you should keep a file of all papers, notes, and receipts relating to your tenancy, including your lease, checks & canceled checks, and letters from or to your landlord.

You should also document any steps or actions you take, or taken by the landlord, when you are involved in some kind of dispute or when you are seeking some kind of agreement or settlement.

We had so many cases that were not easy to deal with because the tenant was short on documentation. Each paper is important sometimes, somewhere.

Our publication will be presented as guidelines and steps that are required for the tenant.

READ AND UNDERSTAND YOUR LEASE

Your Lease

A lease is a legally binding contract between a landlord and a tenant that grants one party possession and use of another party's property for a given period of time. The lease is the basis of the landlord-tenant relationship and sets forth the terms of possession, such as rent, length of time of possession, and rules governing the tenancy.

Before entering into a rental agreement (whether oral or written), make sure you understand everything you are promising. As soon as the lease is signed, it is enforceable, even if the tenant never moves in.

Read The Lease And Understand It -- If you do not understand a clause, ask the landlord to explain it to you.

Know The Lease Term -- Leases usually have a one-year term. In Lebanon, the rent agreement is for three years minimum, unless the tenant decided to leave before maturity date. Meaning, if the rent agreement was for one year, it is by law extended for three years.

You MAY NOT sublet your apartment, or allow anyone else to live in your apartment other than you and the family/household members listed in your lease. You may require in your contract the power to sub-rent in case you were aiming for some investment. Such clause needs the express approval of the landlord.

Know Who Is Responsible For Repairs -- The landlord has to make the basic repairs that are not directly related to your role as tenant, like common areas. The tenant is responsible for the inside repairs and that are mainly caused by his own (or visitor's) negligence.

Written Lease

You will be given a copy of your written and fully executed lease when you sign your lease.

The lease could be verbal, but it is much preferable to be written. That way each party will be clear on its rights and obligations related to the agreement. In case of dispute, a verbal agreement won't be much of help, however it will complicate things.

Reading Your Lease

Remember, the lease is an agreement that legally binds both parties to the terms of the lease. Before signing a lease, read it and make sure you understand everything. Leases are often written in confusing language, so make sure your consultant explains everything you do not understand.

Points to Check in Your Lease

Dates of Tenancy -- The beginning and ending dates of your tenancy show the lease period during which you've the right to possess the premises and the obligation to fulfill all the conditions of your lease. In case the rent agreement was under Lebanese laws, remember that the landlord cannot end the contract before three years.

Rental Payments -- The amount of rent and its due date is clearly specified. Rent is due on or before its due date each month. There is a grace period (one week). After that you may have to pay late fees. If you do not pay your rent (without making arrangements with the landlord) you will be evicted from the apartment.

Rent Increase – The rent could be increasing in time. It is not always a fixed rent for the whole period. Some landlords protect themselves from inflation in long-ranged rents by increasing the payments after 2 or 3 years. You can find also increasing rents when the lease is for commercial purposes.

Security Deposit -- The specific amount required for the security deposit (also termed damage deposit, cleaning deposit, water & electricity deposit) should be clearly stated, as well as any conditions for its return.

The deposit covers all or part of the issue that is required to cover. The landlord must return the deposit in case the cause of it never occurred or took place.

Repairs – As mentioned above, usually the landlord has to cover the large repairs that are not directly related to the apartment, and the tenant goes for the small repairs that are caused by the negligence of the later (or his/her guests). However such issues could be modified in the rent agreement as both parties conclude.

Move-In Condition -- When you sign your lease, you accept the premises "AS IS," meaning in their present condition. Your apartment should be clean and in good order and repair at the time you sign. If it was in bad shape, then mention that fact in the agreement.

You and management may inspect your new apartment before you sign your lease, and complete a move-in check list, which you both sign.

When you move out, you and management will use this checklist to inspect the apartment before you move out. You should deliver the apartment in the same status as when you started your rent.

Obligations for Cleaning -- Your apartment should be clean when you move in. You will be required to keep the apartment in clean condition while you live in the premises.

Common Areas – The landlord is responsible for the maintenance of common areas.

Utilities -- You be paying for the utilities for the lights and water in your apartment. Sometimes, the landlord requires a deposit for those utilities.

Written Notice -- Your lease may state that you must give 30 days' written notice of your intent to vacate. If you fail to give notice, and move out, your lease contains a clause which stipulates that you are responsible for an additional month or the whole year. Make sure you understand and follow the amount of written notice you will be required to give before ending your tenancy.

Landlord's Access -- Your lease allows the landlord to enter your apartment at any time, in the event of emergency, and with your prior consent, for repairs and maintenance and other specified reasons. Your right to privacy is protected under your lease.

But, you must cooperate with the landlord to allow him to enter to make repairs or inspections, or to show the premises to prospective renters or buyers. The landlord must give you reasonable notice and obtain your consent prior to entry, except in cases of emergency. In case you refuse his access for repairing, then you could be responsible for damages caused because of not repairing.

Cleaning -- You are responsible for leaving your apartment as clean as when you moved in when you move out. It should be mentioned that if the apartment was in a bad shape when signing the contract, the tenant could ask for a grace period (of 2 weeks for ex) for repairing the apartment.

Subletting or Assignment Clause-- If your lease states that subletting or assignment ARE NOT allowed, only you and the members or your family/household who are certified and listed on your lease may live in your apartment. Usually such clause is constant in all rent agreements.

House Rules -- Your lease may include rules of behavior such as pet rules and quiet after 10:00 p.m. You may also be provided the House Rules, Police and / or Procedures. If the rules change management should provide the changes in writing.

Be sure you read and understand the House Rules, especially those dealing with guests, security and time restrictions, so that you will be aware in advance.

To Change or Renew Your Lease

If you need to change your lease during the one-year term, you must meet with the landlord, and rewrite or delete certain clauses in your lease. Any changes are invalid unless agreed to by both parties.

Both you and your landlord may initial and date the change. Keep a copy of the revised lease for your records.

Be sure you read and understand your lease amendment, and keep a copy for your records.

Release from Your Lease

If you have to move before the end of your lease term, you and your landlord must agree to release you from your lease. If you end your lease properly, in accordance with the provisions of your lease, the landlord will remove your name from the lease or will void your lease and would enter into a new lease agreement with the new tenant. This will end your liability for future rent or damages.

The landlord will return your security deposit to you, and will collect a new security deposit from the new tenant. This is the safest and clearest arrangement for you.

Security Deposits

The landlord may deduct from the deposit for the following:

Any unpaid rent or utility bills owed by the tenant.

Payment for damages to the premises beyond "normal wear and tear" ("Normal wear and tear" is that deterioration which occurs based upon the use for which the rental unit is intended, without negligence, carelessness, accident, or abuse of the premises or equipment or chattels by the tenant or members of his household or their invitees or guests).

Any other breach of the lease causing financial damage to the landlord.

Return of Your Security Deposit

If you have fulfilled all the terms of the lease (including giving the landlord proper notice, if required), have paid the rent in full and on time, and have left no financial obligation to the landlord, and have left your apartment in the same condition as when you moved in, minus "normal wear and tear," you are entitled to a full return of the security deposit. The tenant should either collect the security deposit in person or leave a forwarding address with the landlord so that the landlord can return the deposit.

Neighborhoods

Your choice for location coincides with your needs. But before, take a look at the neighbors. In case they were disturbing, you know what I mean.

Conclusion:

These guidelines act like pin points for every tenant when dealing with a landlord and a rent agreement. For sure, there are further issues that should be discussed, and that are raised upon the circumstances of each case. We preferred that the guidelines be in brief and clear enough.

Our Publication was achieved thanks to research and applied experience. We hope we cleared out what is needed to be known about Rental Affairs.

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