1

Landlord-Tenant Law

Real Estate Transactions I

Mike Brigner, J.D.

2

Today’s Discussion

Leases at Common Law & Definitions Ohio Landlord-Tenant Law Preparing a Residential Lease Commercial Leases

3

Leases at Common Law & Definitions

4

Lease Law

Leases are covered by– Common law of contracts– Common law of real estate– Federal & state anti-discrimination laws– State landlord-tenant law– Local statutes

5

Common Law: Contracts A lease is a contract & must meet four basic

criteria for a valid, binding agreement:– Offer & acceptance– Consideration– Capacity of parties to contract– Legal subject matter

Contracts are usually drawn by, & favor, landlord– Under contract law, in event of dispute over terms,

all contracts are construed against the drafter– Best if both parties are represented, and negotiate a

fact-specific and mutually fair agreement

6

Common Law: Real Estate

Historically, caveat emptor, buyer beware Tenant took premises as he/she found it Landlord had no duty to provide

habitable premises, or to make repairs– Most states now require habitable condition,

and don’t allow tenant to waive this right Landlord only had duty to keep common

areas and fixtures safe– This idea has carried over into modern law

7

Common Law Remedies

Constructive eviction: If premises becomes uninhabitable, tenant could move out & not pay rent

Distress: If tenant failed to pay rent, landlord could use self-help: forcibly remove tenant, and seize tenant’s goods to satisfy rent arrearage– Most states, including Ohio, now forbid self-

help in residential leases, and require a legal eviction proceeding, with proper notice & hearing

8

Statutory Law Common law has been greatly modified, by

statutory law, such as: Federal laws

– Fair Housing Act (42 U.S.C. § 3604) – Handicap accommodation (24 CFR 100.204)

Ohio statutes– Landlord Tenant Law (R.C. Chap 5321)– Ohio Fair Housing (R.C. 4112(H))

Local ordinances– Zoning ordinances, health codes, rent caps– Occupancy & use limits, safety rules

9

Ohio Landlord-Tenant Law

10

Lease Definitions Lease: A document that conveys a leasehold

interest in real property, which includes:– Right of possession, but not ownership

– For a certain period of time

– In return for the payment of rent

Statute of Frauds requires any transfer of an interest in real estate, including a leasehold interest, to be in writing (R.C. 1335.04)– Leases for less than one year generally do not have

to be in writing (R.C. 1335.05)

11

Parties to a Lease

Lessor = Landlord Party to a lease who owns the property and

transfers occupancy in exchange for rent payments

Issue: Does landlord have good title? A concern for tenants primarily in long-term &

commercial leases They can: do title search

12

Parties to a Lease

Lessee = Tenant Party to a lease who occupies the

premises and pays rent

Issue: Is tenant financially responsible? A concern for landlords They can: do credit check, get deposits,

get third party guarantees

Revised Code Chapter 5321

Applies to residential leases, except:– Condominiums– Hotels, motels, tourist homes– Boarding schools– Jails

Does not apply to commercial

leases

Forbidden Lease Terms R.C. 5321.13 Agreement to pay

other party’s attorney fees

Agreement to waive legal duties of landlord

Limitation or forgiveness of a landlord’s legal liabilities

Landlord’s Obligations R.C. 5321.04 Comply with all health, safety,

housing codes Keep premises fit & habitable Keep common areas safe &

sanitary Supply running water, hot water,

reasonable heat Give reasonable notice (24 hours)

of intent to enter, except in emergencies

Landlord’s Restrictions

R.C. 5321.15 Forbids landlord from

– cutting off utilities,

– locking out tenant,

– seizing tenant’s possessions,

– or threatening any unlawful act against tenant

Violation allows tenant to recover damages and attorney fees

Tenant’s Obligations Keep premises safe &

sanitary Obey applicable safety &

housing rules Don’t damage or destroy

premises or fixtures, or allow others to do so

Maintain appliances supplied by landlord

Tenant’s Obligations Use electrical &

plumbing properly Do not disturb

neighbors, or allow others to do so

No controlled substances

Allow reasonable access for inspection & repairs

Tenant’s Rights R.C. 5321.02 Landlord may NOT increase rent,

decrease services, or start eviction to retaliate for tenant’s action of:– Complaining to landlord of a breach of

any R.C. 5321.04 duty

– Depositing rent with clerk

– Complaining to a government agency of any code violation

– Joining other tenants to bargain collectively with landlord

Tenant’s Rights:

Security Deposits

R.C. 5321.16 Security deposit of over one month’s rent kept for

6 months or more carries 5% interest Deposit may be applied to any unpaid rent Landlord must provide written statement of any

deductions within 30 days Tenant must provide forwarding address

21

Preparing a Residential Lease

22

Residential Lease Elements

1. Date the lease is executed

2. Parties to the lease

3. Description of the premises

4. Duration of the lease, & renewal

5. Rent

6. Misc. terms: security deposit, default, pets, option to purchase, alterations, subletting, etc.

23

Lease Elements

PARTIES: By name or at least number. Can landlord forbid: Kids? Seniors? Handicapped? Sexual predator?

DESCRIPTION: Address, apartment number, in some states legal description, parking places

24

Lease Elements

DURATION & RENEWAL: Notice required? Terms of renewal?

RENT: Total amount, monthly installments, date & place due, late fees. Sometimes 1st &/or last month’s rent payable in advance

DEPOSITS: Security deposit, pet deposit -- amount, conditions for return, interest

25

Lease Elements

PERSONALTY: If furnished premises--Should have inspection before/after

INSURANCE/INDEMNITY: Landlords may try to limit liability for property or personal injury damages to tenant (Illegal in Ohio)

MAINTENANCE/REPAIRS: Spell out who is responsible for what

26

Lease Elements

ALTERATIONS: What may tenant change? May require written permission. May restrict tenant from placing liens. Fixtures (existing & new) to remain after lease.

SUBLETTING: Require prior consent? --Tenant remains liable until original lease term expires

27

Landlord-Tenant Law

Concluded

Thank You

Mike Brigner, J.D.

END OF CLASS: (EVERY Class) Clean up classroom; log off computers; check for personal property & computer disks; make sure you have signed in.