Chp 18 Tenant-Landlord Relationships

Percentage LEase

A fixed minimum plus percentage of the gross volume of business done on leased premises If lease only includes percentage, often includes RECAPTURE CLAUSE allowing landlord to cancel if the volume of business falls below stated fixed minimum

Tenancy At Sufferance

A tenancy at sufferance, also termed "estate at sufferance" , arises when a tenant who has a lawful possession of a property (for example, a lease) holds over WITHOUT the owner's consent. The only difference between a tenant at sufferance and trespasser is that the tenant entered into possession in a legal manner but has now overstayed his or her welcome.

Tenancy At Will

A tenancy at will is a property tenure that can be terminated at any time by either the tenant or the owner (landlord). It exists without a contract or lease, and is unspecific in duration or the exchange of payment. A tenancy at will arrangement is desirable to tenants and owners wishing to have the flexibility to change rental situations easily and without breaking a contract. Can be terminated at any time by giving 90 DAYS NOTICE Will continue indefinetly until one party takes action 1. HAS PERMISSION OF LANDLORD 2. PAYS RENT 3. Lease expired 4. NO CONTRACt

Assignment of the lease vs Sublease

An assignment would transfer ALL of remaining term Sublease transfers PART of term

Landlord & Tenant Terminate Lease

By mutual consent, called surrender and acceptance

Periodic Tenancy

Exists when the rental period is from period to period. Ex) Month to Month, week to week, year to year All conditions are carried over from period to period until one party givers proper notice of termination NO SPECIFIC TERMINATION DATE BUT If tenancy is month to month then must give one month notice and if year to year then 3 month notice

Constructive Eviction

Landlord allows premises to become uninhabitable or violates the covenant of quiet enjoyment, the tenant may remove himself.

Sandwich Lease

Leasehold interests lying between the primary lease and sublease

Estate For Years

Most Common Lease. Fixed or definite period of time by an agreement between lessor and lessee. Ends on last day of the lease WITHOUT NOTICE A tenant who remains in possession of the premises after an estate for years has expired is called a holdover tenant. If the landlord accepts rental payment, this will usually create a periodic tenancy. However, a landlord can evict the holdover tenant and not accept any additional payments.

Gross Lease

Most apartment leases, Tenant pays a flat rental amount and landlord pays for all property charges regular incurred

Rent Control

NJ STATE has no laws governing rent control but MUNICIPALITIES may pass ordinances establishing rent control (contact municipal clerk )

Ground Lease

Parcel of property is leased for long period of time. 50, 80 years. A type of long-term, typically for commercial property, lease in which the payments are variable and adjusted periodically to reflect changes in the property's appraised value or changes in a certain publicized benchmark rate, such as the Consumer Price Index (CPI)

Actual Eviction

Tenant is OUSTED by landlord and is no longer liable for the rent occurring after such eviction Legal Remedy is called SUMMARY POSSESSION

Net Lease

Triple Net Lease, tenant pays for rent, taxes, insurance, maintenance, repairs, utilities

Landlord Heat

responsible for maintaining heat at temperature of 68 degrees from october - may 1 (6am-11Pm)

Security Deposits

1. ALWAYS the property of the person making the deposit. 2. Must be placed in interests bearing account or if over 10 units money market fund 3. Must notify of tenant where money deposited in 30 days 4. If tenant is displaced (fire,flood,condemnation) then security deposit must be returned in 5 business days

2 Types of Eviction

1. Actual Eviction 2. Constructive Eviction

4 Types of Leases

1. Ground Lease 2. Gross Lease 3. Net Lease 4. Percentage Lease

Tenant Rules

1. Tenant who remains in a unit after giving landlord intent to leave may be held responsible for double rent payments for the months they continue to occupy 2. Right of entry no law regarding giving landlord a key or landlord keeping key. BUT landlord usually permitted to keep key