Principles 2: Level 9
Fixtures
A fixture is an object that was once personal property but is now firmly attached to the land in such a way that it is considered to be real property.
Graduated Lease
A graduated lease is a variable lease agreement in which the amount of rent increases at fixed future dates. These increases occur periodically at regular intervals. Generally, this type of lease commences at a low rental rate and increases steadily over the course of the rental agreement. This type of lease is often used to entice tenants with smaller rent payments at the beginning of the lease, with the prospect of increased rent coming later. Graduated leases can be advantageous to the owner (or lessor) of the property because it allows them to raise rent as property values increase.
Lease
A lease is a contract in which one party conveys property to another for a specific predetermined period of time, generally in return for periodic payment. The party living there is called a tenant, and while tenants don't own the property, they do have the right of possession for a period of time. Every landlord-tenant relationship starts with a written lease, all standard procedures and responsibilities for potential tenancy situations should be outlined in writing in the lease.
Lease Purchase Agreement
A lease purchase agreement is used when a tenant wishes to buy a property but cannot do so right away. A lease purchase agreement is a lease in which part of a tenant's rent is applied to the purchase price of the property and the title to the property transfers upon full payment of the stated sale price. The lessor and lessee set the price of the property in the lease agreement. A lease purchase agreement is also commonly referred to as a(n): Option agreement Lease option Lease-option-to-buys
Rent
A lease will stipulate: How much rent costs Where rent should be paid What happens if payment is late What happens if a rent check bounces, resulting in a "returned payment" Other related rules
Consumer Price Index
A monthly index of the prices of general commodities and is used to calculate national inflation levels.
Net Lease
A net lease is a lease in which the (usually commercial) tenant pays a base rent rate plus property taxes. In practice, net leases are used most commonly for commercial properties. With such an agreement, the rent plus taxes paid to the lessor, or landlord, is called net. Any additional payments that a tenant is responsible for are also called nets. This establishes a tiered naming system.
Percentage Lease
A percentage lease is a type of (usually commercial) lease in which the tenant pays a base rent amount and a percentage of their business profits to the landlord. Percentage leases are most suitable for retail businesses, such as those in a shopping center, where location is a prime factor in determining the business's income.
Combining Lease Types
A percentage lease may be applied to either a gross or net lease.
Periodic Estate
A periodic estate (also known as a periodic tenancy) has a fixed lease period, meaning that the lease is automatically renewed at the end of each lease period until the landlord or tenant act to terminate it. A prime example of a periodic estate would be a month-to-month lease. However, if neither expressly terminates the lease, then it is understood that the lease is renewed. The periodic estate does not have to have an ending date. It goes for as long as both the landlord and the tenant want it to last.
Subleasing
A sublease, also known as a sublet, occurs when the tenant (lessee) of a property leases to a subtenant. Sometimes the subtenant will occupy the property in place of the tenant, and sometimes the subtenant will occupy the property in addition to the tenant. In the event of an assignment or sublease, the original tenant will not be released from the lease obligations unless expressly stated.
Tenancy at Sufferance
A tenancy at sufferance occurs when a tenant remains in possession of the property beyond their lease term, without the consent of the landlord. Continuing to occupy a dwelling after the lease is terminated is tenancy at sufferance. The word "sufferance" here actually means to passively allow or tolerate something. When a tenant remains in possession of a property beyond their legal tenancy, the landlord has the right to evict them. The landlord is passively allowing the tenant to stay in the property until that eviction can occur.
Military Entrance, Deployment, or Transfer
A tenant who is a service member or a dependent of a servicemember may vacate the dwelling leased by the tenant and avoid liability for future rent and all other sums due under the lease for terminating the lease and vacating the dwelling before the end of the lease term if: The lease was executed by or on behalf of a person who, after executing the lease or during the term of the lease, enters military service; or A service member, while in military service, executes the lease and after executing the lease receives military orders: For a permanent change of station; or To deploy with a military unit for a period of 90 days or more
Variable Lease
A variable lease is a leasehold agreement in which the base rent changes. It can take the form of a: Graduated lease Index lease
Repair Timeline
According to the Texas Property Code, landlords must make repairs within seven days. The code also states that the timeline for a landlord to begin repairs does not start until they receive a written request from tenants.
Federal Fair Housing Act
According to the U.S. Department of Housing and Urban Development, the Federal Fair Housing Act (or FFHA) protects people from discrimination when they are renting, buying, or securing financing for any housing. The prohibitions specifically cover discrimination because of race, color, national origin, religion, sex, disability, and familial status. The Federal Fair Housing Act was enacted as part of the Civil Rights Act of 1968 and, as such, its aim is to ensure the fair treatment of all Americans seeking housing.
Additional Restrictions
Additional restrictions may apply. If the property is in an HOA that has rules or restrictive covenants, the tenant would be required to observe them. Those rules might prohibit, say, parking on the street or parking a boat in the driveway. Violations paid by the landlord would be reimbursable by the tenant. Other restrictions or prohibitions may address nuisance activities, automobile repair, operating a business, or activities that violate zoning laws or HOA rules. Finally, many leases address how long guests may remain in the property either by HOA rule or owner's restriction.
Sale and Leaseback Agreement
Also known as a sale-leaseback agreement, is an agreement in which a business owner sells their interest in a property and then leases it back at the same monthly rate, usually from an investor owner and, in doing so, frees up capital for other business ventures. Sale and leaseback agreements are commonly used for commercial properties only and take the form of net leases.
Estate for Years
An estate for years is a leased possession of property for a certain, specific period of time; also known as a tenancy for years. This is a lease created under an estate for years and stipulates a specific starting and ending time. Usually, the amount of time in this type of lease can be any amount of time: days, weeks, months or years. Once the lease expires, neither the landlord nor tenant needs to act to terminate it. Instead, once the terms of the lease have expired, it is implied that the contract is terminated. In order to renew the lease, the landlord and tenant must come together and expressly agree to either renew the existing lease or create a new one.
Equitable Estates
An estate in which a freehold estate owner has ownership interest on the property, but another party has interest in the property that are less than the interest afforded by ownership (e.g. liens, easements)
Leasehold Estates
An estate in which a tenant has the right to possess a piece of property during the lease; also known as a non-freehold estate. It contains a reversionary right.
Freehold Estates
An estate in which the owner has an indefinite length of ownership.
Concurrent Estates
An estate that is owned by two or more individuals.
Index Lease
An index lease is a variable lease agreement that allows for a graduated increase of rent at periodic intervals, with increases relative to some economic indicator, such as the Consumer Price Index. Instead of increasing at fixed intervals by fixed amounts, as in a graduated lease, the amount by which the rent increases depends upon variations in the specified index.
Triple-Net Lease (net-net-net)
Any lease that requires a tenant to pay rent, property taxes, insurance, and maintenance expenses is a triple-net lease. In some cases, a triple-net lease will even require a tenant to help pay the interest on the lessor's loan. In a triple-net lease, the expenses that a tenant must pay can be both fixed and variable. For instance: The property taxes owed will (more or less) be the same every month. The maintenance costs will probably change. The taxes the lessee will pay are a fixed cost, and the maintenance payments will be variable.
Double Net Lease (net-net)
Any net lease that requires a tenant to pay a base rent, property taxes, and insurance is a double-net lease. The name reflects the amount of charges for which a tenant is responsible: the rent and property taxes being the first net the insurance being the second net
Requirements for New Buildings
Applies to buildings that are ready for first occupancy after March 13, 1991, and have an elevator and four or more units. These requirements include: Public and common areas must be accessible to persons with disabilities Doors and hallways must be wide enough for wheelchairs. An accessible route into and through the unit Accessible light switches, electrical outlets, thermostats, and other environmental controls Reinforced bathroom walls to allow later installation of grab bars Kitchens and bathrooms that can be used by people in wheelchairs
The Security Deposit
At the start of just about every tenancy, the tenant must give their landlord a security deposit. This typically covers the possibility that the tenant may cause future damage to the property (which the security deposit may help cover). It's a negotiable amount usually dependent on market conditions, but traditionally, it tends to be a deposit of one month's rent. Section 92.102 and 92.108 of the Texas Property Code.
Solving for Rent
Base rent + (Gross monthly sales x Percentage of gross) = Rent
Repairs a Landlord Does NOT Assume
Damages caused by tenant, any occupant including any guest Damage to doors, window, and screens Damage from windows or doors left open Damage from wastewater stoppages caused by foreign objects in drain lines Items that are solely cosmetic and have no impact on the functionality of the property Others so identified
Americans with Disabilities Act Disabilities
Deafness Blindness An intellectual disability Partially or completely missing limbs or mobility impairments requiring the use of a wheelchair Autism Cancer Cerebral palsy Diabetes Epilepsy Human Immunodeficiency Virus (HIV) infection Multiple sclerosis Muscular dystrophy Major depressive disorder Bipolar disorder Post-traumatic stress disorder Obsessive compulsive disorder Schizophrenia
Normal wear and tear
Deterioration that results from the intended use of a dwelling, not including deterioration that results from negligence, carelessness, accident, or abuse of the premises.
Types of Leasehold Estates
Estate for Years Periodic Estate Estate at Will Tenancy at Sufferance
Residential Lease Inventory and Condition Form
For members of the Texas Association of REALTORS®, there is a helpful form titled Residential Lease Inventory and Condition Form that serves as a written document describing the move-in condition and move-out condition of the property. Texas REALTORS® who have leasing clients (both landlords and tenants) might want to recommend that both parties complete this form.
Types of Leases
Gross lease Net lease Percentage lease Variable lease Ground lease Oil and gas lease Lease purchase agreement Sale and leaseback
Competent Parties
Having parties to a contract is only one necessary component. As with any contract, the parties must be competent in order to create an enforceable lease. Competent, in this sense, means the mental capacity of an individual to participate in legal proceedings or transactions. This includes being of lawful age (18 years old) to enter into a contract.
Repairs a Landlord Assumes
Heating and air-conditioning systems Appliances furnished by the landlord Water heaters Water penetration from structural defects
Federal Fair Housing Act Exemptions
Housing sold or rented by the owner themselves, without the use of a real estate professional Owner-occupied buildings with no more than four units Housing operated by organizations and private clubs that limit occupancy to members Housing that meets the qualifications for senior living communities
Fire Safety: Fire Extinguishers
If a landlord has installed a 1A1OBC residential fire extinguisher in accordance with local ordinances or laws, the landlord must inspect them: At the beginning of each resident's lease Within a reasonable time of receiving a tenant's written notice requesting an inspection
Disabilities: Additional Protection
If it's considered "reasonable," the landlord may permit changes only if you agree to restore the property to its original condition when you move. A building with a no pets policy must allow a tenant with a visual impairment to keep a guide dog. The landlord may require the tenant to repair any damage related to the animal, but they cannot charge a higher or additional security deposit. An apartment complex that offers tenants ample, unassigned parking must honor a request from a tenant with a mobility impairment for a reserved space near their apartment if necessary to assure that they can have access to their apartment.
Wear and Tear
If the damage to the property is due to the actions of the tenant outside the scope of normal wear and tear, then the tenant is liable for the repairs. The cost of significant tenant damages (NOT normal wear and tear) will be deducted from the tenant's security deposit so the landlord can make the repairs for the next tenant.
Failure to Repair
If the landlord does fail to make the repair (within the allotted time) in a situation affecting the physical health or safety of the tenant, the tenant has recourse under the Texas Property Code. The tenant could: Terminate the lease with appropriate refunds Have the condition repaired Deduct from the rent the amount of the repair Obtain judicial remedies according to Section 92.0563 of the Texas Property Code
Use and Occupancy
If the lease is for a home, the lease might stipulate that the home may only be used as a private residence. A tenant could not then use the property as a daycare facility. In terms of occupancy, most leases also require the names and ages of all occupants to be listed.
Rent and Repairs
If the tenant is behind on rent payments, then the landlord may be hesitant to spend money on property repairs. And according to the Texas Property Code, landlords cannot be held liable for making repairs if the tenant is not current in rent payments when they give the landlord notice of the needed repair.
Blockbusting
If you are involved in blockbusting, it means that an agent is trying to convince people to sell their homes based on the idea that they believe an overwhelming amount of minorities are moving in. This is also known as panic peddling. Basically, the agent is causing homeowners to hurry and sell their homes out of fear.
Illegal Target Marketing
Illegal target marketing occurs when a housing provider advertises in niche publications that target specific ethnic or religious groups and does not offer their services to the general public. This is not allowed under fair housing legislation. A housing provider needs to show that they make housing opportunities available to all people regardless of race, color, religion, national origin, gender, familial status and disability. That means that any advertising strategy a housing provider utilizes needs to include a medium that targets the general public.
Gross Lease
In a gross lease, the tenant pays a simple, flat rent every month. A gross lease assumes that the tenant will be responsible for the payment of a fixed-monthly charge, whereas the landlord will be responsible for the property's maintenance, security, taxes, utilities, insurance on the building, and all other operating expenses. In some cases, the tenant may also pay utility bills.
Land Only
In a ground lease, the owner grants the tenant a leasehold interest in the land only. This means ground leases separate ownership of the land from ownership of the building and improvements constructed on the land. Upon expiration of a ground lease, the land, as well as any construction on the land, reverts back to the original landowner. The ground lease may also have a provision for the structure on the leased land to be destroyed before the land reverts back to the owner.
Requirements of a Valid Lease
In addition to the statute of frauds requirement for a written document, the other elements of a traditional real estate purchase contract are present too, such as: Parties to the lease Competent parties Offer and acceptance (a.k.a. mutual agreement) Consideration Lawful objective Legal description of the property
Maintenance Notice
In order for the landlord to be held liable for making a diligent effort to make the repairs, the tenant must give a notice identifying the condition in need of repair to either: The person who collects rent The place where rent is collected Unless the written lease explicitly states as such, the notice identifying the condition in need of repair does not need to be in written form.
Late Fee
In order to provide an incentive for the timely payment of rent, most leases include a stipulation for a late fee. The usual term in many leases is that the rent payment is due in full on the 1st of the month, and rent is late if received after the 3rd day. Of course, this could vary depending on the landlord — which is why these provisions need to be very clear in the lease agreement.
Sexual Offenses and Stalking
In some circumstances, Texas law allows survivors of sexual assault, attempted sexual assault, stalking, and parents of child sexual abuse victims to break their leases early without having to pay a penalty. Certain parts of the law only apply to leases signed on or after January 1, 2014, so it's important to consult with a lawyer. In general, tenants who were sexually assaulted or stalked on the leased premises (or any dwelling on the leased premises) must give their landlord notice that they are breaking their leases within six months of the offense. Tenants in these situations may need to provide documentation required by Section 92.0161 of the Texas Property Code.
Commercial Tenancy
Income-producing business uses the property.
Americans with Disabilities Act
It identified and defined the protected disabilities. It codified that any buildings built after March 13, 1991 with public access or employees, must have features that provide reasonable access for people with protected disabilities.
Tenant Maintenance
Keeping the property clean and disposing of garbage in proper receptacles Changing air filters (perhaps monthly or quarterly) Replacing light bulbs, fluorescent tubes, and batteries in smoke alarms Taking necessary precautions to prevent frozen pipes Exterminating as necessary Knowing the location of any water shut-off valve Maintaining and irrigating the yard Immediately notifying the landlord of any water leaks, fires, or other insurable claims Notifying the landlord in writing of all needed repairs
Health and Safety & Hot Water
Landlords are responsible for conditions that materially affect the health or safety of an ordinary tenant. Landlords are responsible for the maintaining of a device in good operating condition that can supply hot water of a minimum temperature of 120 degrees Fahrenheit.
Late Fee Conditions
Landlords can charge their tenants late fees for not paying their rent on time, but there are three conditions that must take place in order for them to charge a tenant a late fee: The landlord must include the late fee charge in the lease.* The late fee must be reasonable. The tenant must be at least one full day late. From the Code: The Texas Property Code, Section 92.019, "prohibits assessing a late fee until the rent has remained unpaid for at least one full day after the date on which the rent is due."
Inspection Dates
Landlords must inspect smoke alarms: At the beginning of each lease Whenever a tenant reports one malfunctioning* Whenever a tenant requests an inspection* *These should be addressed within a reasonable amount of time.
Returning Security Deposits
Landlords must mail a tenant's security deposit within 30 days of the tenant moving out of the residence. This must also include an itemized list of any damages taken from the security deposit. This does not mean that the tenant must receive the deposit within 30 days. The law just states that the deposit must be postmarked within 30 days. Tenants are required to give a forwarding address to their landlord. Until a written forwarding address is received, the landlord has no duty to: Return the tenant's security deposit Give the tenant a written description of damages and charges
Rekey
Landlords must rekey residences within seven days of a tenant turnover (tenant moving out, new tenant moving in). This type of rekeying must be done at the landlord's expense. Landlords must also rekey residences when requested by tenants in writing. However, tenant-requested rekeying is done at the expense of the tenant, not the landlord. Additionally, should a tenant be delinquent in the rent, as a remedy the landlord could rekey the property. But, should the residential property be rekeyed, the landlord must provide a new key to the tenant when requested.
Common Lease Provisions
Lease term Rental amount Security deposit Use of property and occupancy Maintenance of property Repairs Early termination Assignment Security devices and smoke detectors Use of the premises Right of possession Default
Prohibitions
Most leases also contain prohibitions against changes made to the property without the landlord's written consent. Tenants may not be allowed to: Remove and/or re-key any locks Alter, replace, or remove flooring, paint, or wallpaper Install, change, or remove any fixture Remove any of the landlord's personal property from the dwelling, i.e., refrigerator, washer, dryer, etc. Re-paint any portion of landlord's property Permit water furniture in the property (so say "goodbye" to that groovy water bed you've had since college)
Article 5: Discriminatory Practices
No real estate license holder shall inquire about, respond to or facilitate inquiries about, or make a disclosure of an owner, previous or current occupant, potential purchaser, lessor, or potential lessee of real property which indicates or is intended to indicate any preference, limitation, or discrimination based on the following: Race Color Religion Sex National origin Ancestry Familial status Disability For the purpose of this section, disability includes AIDS, HIV-related illnesses, or HIV infection as defined by the Centers for Disease Control of the United States Public Health Service.
Beware: Unauthorized Subleases
Not every lease agreement will allow a tenant the right to sublet. Or, some may allow it but require the subtenant to apply through the leasing office/landlord and be documented on the written lease, in addition to the primary tenant. An unauthorized sublease may carry consequences, up to and including eviction of the subtenant and a potential lawsuit against the primary tenant resulting from any damages caused by the sublease.
Landlord Default
On the other hand, if the landlord fails to comply with the lease, the tenant could seek any relief provided by law. In addition to contacting a local Tenant Council, the tenant may be able to take the landlord to Small Claims Court to seek a monetary damage remedy.
Enforcing Fair Housing
One way for trade organizations to enforce fair housing laws is to hire trained people to act as "undercover" buyers, sellers, landlords, and tenants. These undercover actors work to get a housing provider to commit a violation.
Redlining
Redlining, another violation of the Fair Housing Act, is the illegal act of a lender denying mortgages in certain areas of town. This used to be a huge issue in mortgage lending, but with Fair Housing and the Truth In Lending Act.
Early Termination
Standard leases in Texas include early termination clauses whereby a tenant may be able to terminate a lease earlier than stated in the terms of the lease. There are special statutory rights that allow for extreme circumstances to grant the lessee (tenant) to discharge the lease before the agreed upon termination date stipulated in the lease agreement without liability.
Steering
Steering is an illegal act of channeling buyers or tenants to certain areas, either to keep the area demographically the same or to change the demography of the area. It's steering certain people to certain areas.
Oil and Gas Lease
Subsurface rights to a property may be leased, or entirely owned, by a separate party that is NOT holding ownership of the property's land or developments. One of the most common leases relating to subsurface, or mineral, rights is an oil and gas lease. An oil and gas lease grants the exclusive right to extract any oil or gas from the ground beneath a property. In practice, the duration of this type of leasehold is expressed in years, and requires the drilling party to pay the reversionary owner royalties.
Residential Tenancy
Tenants reside on the property.
Protective Orders
The Texas Property Code gives a tenant the right to terminate their lease, including all obligations under a lease if the court issues a protective order due to domestic violence or abuse. A protective order serves the function of providing protection for victims of violence or abuse who live with their abuser. The tenant with a protective order issued by the court for family violence may vacate the dwelling and avoid liability for future rent and any other sums due under the lease for terminating the lease and vacating the dwelling before the end of the lease term. In other words, they can discharge the lease without consequence, in the interest of their safety. To exercise this early termination option when another occupant is involved, a tenant must obtain a protective order as described in Section 92.016, deliver a copy of the order to the landlord, and vacate the property.
Signed Lease
The code states that the landlord must give the tenant a copy of the signed lease within three business days of signing a lease. It's Texas law, landlords. This promotes good "landlordship" as tenants can keep their landlords accountable. And hopefully, this prevents any closeout surprises from happening.
Exceptions to the Seven Day Rule
The date the landlord receives notice The severity and nature of the condition The reasonable availability of materials and labor The availability of utilities from the utility company Lastly, landlords are under no obligation to make a repair if they are waiting for the proceeds from an insured casualty loss. So, if the house was damaged by hail, flood, fire, or other events covered by insurance, the landlord may wait to make the repairs until they have received proceeds from their insurance company. Obviously, this would fall outside of the seven day rule.
Fire Safety: Smoke Alarms
The following locations in a residence must have a smoke alarm: Every bedroom Every corridor that serves multiple bedrooms Every level of a building that has multiple levels A single room that serves as a dining, living, and sleeping room Wall placement: If placed on a wall, the alarm must be between six and 12 inches from the ceiling. Ceiling placement: If placed on a ceiling, the alarm must be no closer than six inches to a wall.
Lease Term
The lease term is the initial rental period from commencement to expiration. This is the duration of the lease. Most lease agreements require that the notice of termination be given in advance.
Ground Lease
The leasing of bare, undeveloped land is carried out through a ground lease. Ground leases are used to distinguish between ownership of the site and ownership of the developments on a site. Generally, ground leases take the form of net leases and last for a duration of 30-99 years. Although only a long lease will prove worthwhile for a lessee, ground leases that exceed 99 years are rare. Many states will transfer leaseholds that exceed 99 years into fee simple, or freehold estates. Ground leases are most often used in the development of commercial property, where it can be an attractive alternative to purchasing land because it reduces the amount of money needed for obtaining the property (no down payment!), thereby freeing up more cash for investing in the construction of new buildings. Ground leases also provide commercial developers access to well-located land that could not otherwise be purchased from the landowner.
Automatic Renewal and Notice of Termination
The purpose of such a clause is to renew the lease on a month-to-month basis unless one of the parties provides the other with written notice of termination. The purpose is to give all parties adequate notice as to the intent to continue or terminate the lease. Should either party fail to give the written notice of termination within the time constraints, the lease will continue on a monthly basis until one of the parties gives notice per the requirements of the lease.
Texas Property Code
The state's statutory requirements relating to, well, property.
Lease Agreements: In Writing
The statute of frauds, as defined by Chapter 26 of the Business and Commerce Code, requires that certain agreements be reduced to writing to be enforceable. This includes leases of longer than one year. Lease agreements lasting less than one year may be verbal and are not required to be in writing.
Lease Purchase Agreement: How It Works
The tenant (optionee) pays the landlord (optioner) a nonrefundable deposit (option fee) that is applied to the purchase price of the property. The option fee gives the optionee the choice of purchasing the property before the conclusion of their lease. Once the optionee has paid the option fee, they must then pay the optioner a monthly rent to compensate for their use of the property. A fraction of that monthly payment is usually applied towards the purchase price or down payment of the property. The optionee has the option of purchasing the property (according to the fixed terms in the contract) during the lease of the term; however, they lose this option once the lease expires.
Constructive Eviction
The tenant may be able to seek what's called constructive eviction, which is the termination of a lease in circumstances where the landlord intentionally failed to provide required repairs or maintenance to such a degree that the premises are considered unusable. A tenant would need to prove certain conditions interfered with their quiet enjoyment of their property. They should: Give their landlord written notice of the problem. Allow reasonable time for the landlord to solve the problem. If the landlord fails to make necessary changes, the tenant can move out and then seek damages. The last part is important, because if a landlord has made a tenant's space uninhabitable but the tenant keeps living there without paying rent, a court might decide that that justifies the tenant's legal eviction.
Tenant Default
The tenant may be in default when they fail to comply with the terms of the lease. If the landlord is going to declare that the lease is in default, the landlord must serve notice on the tenant. This means at least one day written notice terminating the tenant's right of possession. Essentially, this is a precursor to an eviction notice and needs to be in compliance with the Texas Property Code, Section 24.0061. If the tenant refuses to move after being served with the notice to move out, the landlord must file a lawsuit for actual eviction with the Justice of the Peace Court to get approval to remove the tenant.
Landlord & Tenant Act
Title 8, contains 4 chapters: Chapter 91: Provisions Generally Applicable to Landlords and Tenants Chapter 92: Residential Tenancies Chapter 93: Commercial Tenancies Chapter 94: Manufactured Home Tenancies
Tenant Death-Person of Contact
To be prepared for a tenant's death, landlords should request information about an emergency contact from their tenants. This written request should include the contact's name, address, and telephone number. Texas Property Code suggests that landlords collect person of contact information. However, neither party is legally obligated to collect or give this information. Landlords should also request written permission from their tenants for their chosen person of contact to do the following in case of the tenant's death: Access the premises at a reasonable time in the landlord's or agent's presence Remove any of the tenant's property Receive the tenant's security deposit, less any lawful deductions Landlords should have the person who is accepting the property of a deceased tenant sign an inventory of property.
Discharge of Leases
To discharge a lease means to terminate the lease agreement. There are a number of ways a lease can be discharged, all of which tend to fall into these four categories: Upon expiration of the primary term or month-to-month term after proper notice has been provided By agreement of both the landlord and tenant By a breach of one of the parties By operation of law (special statutory rights)
Housing Opportunities for Families
Unless a building or community qualifies as housing for older persons, it may not discriminate based on familial status. That is, it may not discriminate against families in which one or more children under 18 live with: A parent A person who has legal custody of the child or children The designee of the parent or legal custodian, with the parent or custodian's written permission Familial status protection also applies to pregnant women and anyone securing legal custody of a child under 18.
30 Days to Mourn
Upon death of a tenant, the landlord should contact the person of contact right away. The landlord may discard the personal property of a deceased tenant after 30 days if the landlord has mailed a written notice to the designated person by certified mail with the return receipt requested and either: The person has failed to remove the deceased person's items after 30 days from the postmark date. The landlord has not been contacted by anyone claiming the property prior to its being discarded.
How to Inspect
Use actual smoke Operate the test button Follow the manufacturer recommended test procedures
Maintenance
Use and occupancy relate to maintenance, as many maintenance issues typically arise out of use, occupancy, or both. At move-in, it's recommended that a written record (possibly including pictures of the property) be established between the landlord and the tenant. That memorandum then becomes the reference point for maintenance going forward.
Lease Agreements
Usually, a comprehensive lease will define the: Tenant and landlord's rights and obligations Time frame of the contract Amount of money that the tenant must pay for use of the property The lease agreement is an express contract between the parties giving the tenant the right to possession and the landlord rental income.
Violations of Health Code
Violations of the health code can result in a discharge of a lease. Landlords are responsible for ensuring that their properties are safe and livable. In essence, the State of Texas does not want landlords to be able to profit off of unsafe properties. There are two broad categories of conditions that fall under the umbrella of landlord responsibility: Health and safety Hot water
Holdover Tenant
When a tenancy at sufferance occurs, the tenant is referred to as the holdover tenant because they no longer have a standard tenant-landlord relationship. The tenant is not considered a trespasser because the tenant originally had a right to be on the property. (A true trespasser never had a legal right to be on the property.)
Estate at Will
When a tenant is occupying a property with the landlord's knowledge and consent, but without a formal lease agreement, it is called an estate at will. Either the tenant or the landlord can end the situation at any time. In a lease under an estate at will, the landlord and tenant have all of the typical rights and obligations under any other type of leasehold estate, except that the tenant or landlord both have the right to terminate the lease agreement at any time. It will last until one of the parties decides to end it. However, the landlord and tenant must give notice before terminating the lease.
Covenant of Quiet Enjoyment
While the landlord may enter a premises for required maintenance, they may not violate the covenant of quiet enjoyment, which is the right of a tenant to possession and quiet enjoyment of the premises without disturbance from the landlord.
Landlord Access
While the lease certainly lays out the responsibility of the tenant to care for the property, access to the property by the landlord is permitted. Many leases require advance notice, but a landlord may enter at reasonable times to access the property for condition assessments or to make repairs.
Americans with Disabilities Act Modifications
Wider doorways Automatic door openers Ramps Elevators Braille markings along with lowered environmental controls and grab rails
Security Devices
Window latch on each exterior window Doorknob lock or keyed deadbolt on each exterior door Sliding door lock on each exterior sliding glass door Sliding door handle latch or security bar on each exterior glass door Keyless bolting device and a door viewer on each exterior door
Fair Housing in Texas
Within the Rules of the Texas Real Estate Commission (TREC), you'll find Chapter 531, also known as the Canons of Professional Ethics and Conduct. Article 5 of this specifically addresses discriminatory practices.