Off Campus Housing Guide                          Back to Table of Contents

Chapter 3  
Tenant’s Rights, Leases
Terms of Lease             
Security Deposits      
Insurance                      

Section Three:  Tenant’s Rights , Leases, Security Deposits

BECOMING A TENANT: TENANT’S RIGHTS, LEASES, SECURITY DEPOSITS

LEASES, WRITTEN AND ORAL

A lease is a legally binding agreement or contract between a property owner/manager, “lessor” and a tenant, “lessee”. A lease can be either written or oral: once you pay rent and have been given keys to access the premises, you have a lease. Oral leases can be valid for up to three years in the state of Pennsylvania. An oral lease is easier to terminate, as the initial terms are hard to prove. Usually a 30-day notice in writing can terminate an oral lease, either by the landlord or by the tenant. Written leases are binding for the whole duration specified on the contract. Remember that a lease is a document originating with the landlord/management company/board of realtors and as such it tends to represent lessor’s interests.

TENANT’S RIGHTS: WAIVABLE, UNWAIVABLE, REGULATED BY THE LEASE

A tenant has certain basic rights, whether written into the lease or not. The Landlord Tenant Act of 1951, outlines these basic tenant’s rights. Since 1951 there have been certain amendments to the law, such as the “Warranty of Habitability” (1978) and the Lock Haven City Council ordinance of 1987, making it illegal for a landlord to lock a tenant out, shut off utilities or harass with the intention of evicting without due process. In July 1994 the “Plain Language Contract Act” was enacted. According to this act all residential leases after this date must be written, organized and designed so that they are easy to read and understand by consumers. However, a lease that is easy to understand is not necessarily a fair lease. Certain leases still contain unfair, illegal clauses or ask tenants to waive important rights. Since 1995 all leases for properties built prior to 1978 must contain a “Lead Paint Disclosure” clause.

BASIC TENANT’S RIGHTS:

  • right to quiet enjoyment of home;

  • right to privacy;

  • right to a safe, habitable place (a place conforming to the local housing code standards; the landlord is responsible for all repairs due to normal wear and tear and cannot make the tenant take the apartment “as is”;

  • tenant’s possessions cannot be seized if tenant breaks promises in the lease;

  • the tenant cannot be prohibited from representing himself/herself in court or from suing the landlord;

  • the tenant cannot be asked to relieve landlord from all responsibility for damage or physical injury if it can be proved that the property owner/manager was negligent. Both landlord and tenant are responsible for their negligence.

 Older leases contained such illegal clauses as distraint (the landlord has the right to enter apartment, seize tenant’s property and sell it, if tenant fails to pay rent), and disclaimer of liability for negligence. The language used was full of confusing legal jargon so it was difficult to understand that important tenant’s rights were violated by the lease. The disclaimer of liability for landlord’s negligence is still part of many leases currently used.  The confession of judgement clause was also formulated in the same “legalese” and by signing a lease containing such a clause tenants were giving power of attorney to their landlord/property manager/realtor, who could represent them in court. After 1994, such clauses, should they appear in leases, will have to be formulated in language easy to understand so a tenant no longer needs a translation of such clauses.   

WAIVABLE RIGHTS

Some leases may ask lessees to waive their right to notice or to reduce it to five days. The law requires 10 days of notice for non-payment of rent and 15 days for other violations of lease terms. Make sure you understand that the right to notice in case of non-payment of rent or other violations of the lease term is a waivable right. Another right which is a waivable right is the right to continue a lease when the property has been sold. Some leases ask the lessee to agree that in case there is a foreclosure sale, the new owner has the right to terminate lease.

READ AND UNDERSTAND YOUR LEASE BEFORE SIGNING. NEGOTIATE ADDITIONAL TERMS AND WRITE THEM INTO THE LEASE. ALWAYS GET A COPY OF ANY DOCUMENT YOU SIGN.

Once you have signed the lease you have committed yourself to all its terms, even if some of them may be unfair to you. Only illegal clauses, if any, will not apply.

Leases can be negotiated. The best time to negotiate is before signing. Clauses can be crossed out if both parties agree. Any deletions must be initialed by both parties in order to be valid. If additions are to be made, some leases provide space for “special clauses”. Additional agreements can also be attached in Riders. Remember: the agreement in the rider supersedes any clause with the same content in the main body of the lease. If the lease you must sign has a rider, read it carefully, and make sure you agree to those terms. Landlord riders sometimes contain clauses that invalidate certain favorable terms outlined in the main lease (e.g. subletting, repairs, penalties for late payment and others).

 TERMS OF THE LEASE

1.  TENANTS ARE JOINTLY AND SEVERALLY RESPONSIBLE
A lease will specify who the two parties signing the contract are. If several tenants sign a lease together they are jointly and individually responsible for the fulfillment of all terms. If a roommate leaves earlier or does not pay rent the landlord can pursue the remaining tenant for the entire rent.

2. RENEWAL CLAUSES 
Make sure you understand the renewal clause in the lease. Most leases renew automatically for a period of one more year or one more month. The end of term notice included in the lease specifies the amount of notice required in order to terminate lease on the stated date or to change terms of the lease. In most cases the notification time is 60 days, but some leases require 90 or even 180 days notice. The notice must be given by the 1st day of the month. If you want to terminate your lease you must give proper notice in writing, usually by certified mail, return receipt requested. If you fail to do so you may find yourself legally bound for another lease term. When a lease renews on a month to month basis with a 60 days’ notice then you actually have a two-month to two-month lease. Likewise, if the landlord wants to raise rent or change terms he/she must also give you the required notice. The landlord, however, may not be asked by the lease to notify you with a certified letter. At renewal time, watch out for any correspondence coming from your landlord.

3. UTILITIES
Make sure the responsibilities regarding payment of utilities are clearly outlined in the lease. 
        
4. POSSESSION OF PREMISES
A fair lease will specify that if apartment is not ready for occupancy because of reasons beyond the landlord’s control the tenant can either wait until  the apartment is ready (and not pay rent) or can terminate and get all the money back. Some leases will ask the tenant to wait for a specified number of days. In either case, do not expect the landlord to pay for storage or hotel accommodation.

5. SALE OF PROPERTY/CHANGE IN MANAGEMENT
In case of sale of premises or change in management a fair lease will protect your tenancy. Some leases, however, contain a subordination clause, according to which the lessor can terminate  the lease. 

6. ACCESS TO PREMISES
A landlord must always have access to the premises in emergency situations. For routine inspections/repairs or showing apartment after giving notice, a fair lease will require the landlord to give you 24 hours’ notice. Many leases, however, ask you to allow access to the premises between reasonable hours on business days. If you sign such a lease, this is what you will have to do. If you feel your right to privacy is violated, you should address this problem in writing and ask for notification.

7. PURCHASING RENTER’S INSURANCE
Many leases recommend or require that tenant purchase renter’s insurance. This is a very good idea. Your belongings are not protected by the insurance policy of the landlord. Unless you can prove negligence on the part of the landlord, and this is not always easy, you have no protection in case of fire, theft or any other loss situation. 

8.  REPAIRS
The landlord is required by law to keep the property up to the standards of the Housing Code at all times. If the lease states that the landlord is not obligated to perform repairs, such a clause is illegal. Maintenance and normal wear and tear are the responsibility of the landlord. You are, however, responsible for repairing all damage due to your misuse, abuse or negligence. Painting and decorating the apartment are not your responsibility, unless you have damaged the place beyond wear and tear. When you sign the lease find out what kind of hanging devices you are allowed to use.

If your renting the apartment is conditioned upon the landlord’s performing certain repairs/improvements which are not required by the Housing Code, such as changing carpet, replacing mirror, etc., make sure you write these repairs into the lease. Always put a time frame to your requests. Oral promises are not valid. Get everything in writing.

If you have repair problems, request repairs in writing. If the landlord does not respond to your request in a timely manner, write a certified letter, return receipt requested. Give the landlord a reasonable amount of time to fix the problem. If repairs are not done, write a second letter, also certified. If you get no response to the second letter, then you can consider using legal remedies, such as “Repair and Deduct”, withhold rent or terminate lease.

If you plan to resort to any of the above we advise you to obtain additional information about the correct procedures from our office or from the Tenant Action Group. For rent withholding or lease termination obtain an inspection from the City of Lock Haven Licenses and Inspections. They will attest to the existing violations, the part of the apartment which is not habitable and the necessity for repairs.

Do not withhold rent or move out without a prior L&I inspection and report.

For emergency situations make sure you have an emergency contact number for your landlord and that a procedure for dealing with such situations is in place.

If you have no other way of convincing your landlord to fulfill the promises of the lease and you must withhold rent, put the rent money in an escrow account.


SECURITY DEPOSITS

What is a security deposit?

A security deposit is an amount of money retained by the landlord and held in escrow for the duration of the lease term. It is used for any damages done to the property during the tenant’s occupancy. A tenant cannot use the security deposit as rent payment. A security deposit differs from a deposit given before lease signing to remove the property off the market. Such a deposit, often as much as a one-month rent, is in most cases non-refundable if the tenant changes his/her mind about renting. If the lease is signed the initial deposit is kept as security deposit.

According to the Pennsylvania Security Deposit Law, a landlord can charge an amount up to or equal to two months’ rent as security deposit in the first year of a lease. Some landlords consider half of it as the last month’s rent. After the first year, the landlord can only hold a security deposit equal to one month’s rent. No last month’s rent should be held by the landlord after the first year. At the beginning of the third year the deposit must be placed in an interest-bearing escrow account. At the end of the third year and every year thereafter, the landlord must remit the interest to the tenant. He can, however, deduct 1% of the total deposit for administrative costs.

How to Protect the Security Deposit

Inspect the premises upon move in and make a list documenting the condition of the apartment. You can use our MOVE IN/MOVE OUT CHECKLIST or draw up your own list of damages (include holes, or marks on the wall, damage to floors and windows, any marred or broken appliances that came with the property). If possible, have the landlord inspect the property with you. If not, sign the list and mail it, certified mail, to the landlord, keeping a copy for yourself. This will ensure that you will not be charged for any damage from the previous tenants.

Before you move out, perform a similar inspection of the premises and draw up a similar list. Make sure you clean the apartment even if you did not find it clean when you move in. The initial list and the final list should differ only in terms of “normal wear and tear”. You are responsible for damages done through misuse, abuse and negligence Make sure you have given proper notice of termination and provided the landlord with written notification of your forwarding address. Use certified mail.

How to Get the Security Deposit Back

The landlord has 30 days to return the security deposit to you after the termination of the lease. If the security deposit is not returned in full, because of claimed damages to the property, cleaning fees, unpaid rent or other charges, the landlord must supply you with an itemized list of the deductions and the remainder of the deposit, if any. Remember, you are responsible for leaving the apartment clean even if you did not find it so at the beginning of the term. You are responsible for damages done through misuse, abuse and negligence. It is very important to document items you feel the landlord may make you responsible for. 

If the landlord does not communicate with you in writing within the 30-day period required by law, he/she forfeits the right to withhold any money for damages or cleaning. He/she still can withhold for back rent and/or unpaid utility bills. If the landlord communicates with you within the indicated timeframe but you do not agree to the list of damages or with the amount of money he/she is withholding, write a letter to your landlord, mail it certified, return receipt requested, requesting immediate return of your security deposit or contesting the charges, requesting return of the money owed. If you get no response, you can take your landlord to the Small Claims Court. In case there was no communication in writing within the 30-day period you can sue for up to two times the amount of the deposit. If you get a date in Court, you must be present, otherwise you lose your case.

Tenant’s Insurance: Why You Need It

  • Last spring Patty’s residence hall room was robbed. The thieves took her down quilt, TV, and leather coat. She was able to replace most of the items because her parents have a tenants insurance policy that covers off-the-premises-theft.

  • The roof on the house that Paul and his brother Joe rent collapsed under the weight of an especially heavy snow story, making it impossible for them to live there until repairs were completed. Under the “additional living expenses” clause in their tenants insurance policy, Paul and Joe’s motel bills and other extra living costs incurred during this period were paid.

  • Sara’s cat scratched a neighbor’s child who as a result needed medical care. Sara’s tenants insurance policy paid all of the medical fees under the “liability to others” provision found in all renters’ policies.

You probably own furniture, appliances, a wardrobe, and other valuable items. Some tenants assume that their personal belongings are insured against loss or damage by the landlord’s insurance policy. That is not true. Your landlord probably has insurance to cover the house or apartment building, but the policy does not include coverage for your personal belongings. Tenants insurance could save you thousands of dollars in the event of theft, fire, or accident.

If you are a college student, you may, as a member of the family, be automatically covered under the away-from-home provision of your parent’s tenants (or homeowners’) policy. However, if you live in an apartment off campus, you are probably not covered. Your family’s insurance agent can answer your questions and explain the kind of protection to which you are entitled.

What Tenant’s Insurance Covers

Loss of Property. Your personal property is covered, whether it is in your home or elsewhere. A standard tenants insurance policy covers furniture, clothing, and most other personal belongings for their actual cash value at the time of the loss, but it provides only limited coverage for furs, jewelry, Silver and other specific valuables.

Liability to Others. The liability coverage in a tenants policy applies at home or elsewhere to injuries or damages caused by you, a member or family, or even a pet. It includes the legal costs of defending yourself if you are sued.

Additional Living Expenses. Under this provision of your policy, the insurance company will reimburse you for the cost of living elsewhere when you cannot occupy your home because of hot water, plumbing, or electrical failures; flood, fire, or other types of damage.

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