The Common Law: Uncertain Lease Agreements – Things to Consider
Uncertain Lease Agreements – Things to Consider
Summer is the busiest time of year in Central Texas for tenants moving into and out of leased property. All that moving often means that issues arise regarding entering into a new lease. Here are a few common questions (and answers) related to entering a new lease.
I'm thinking about signing a lease that requires monthly payments but does not say how long the lease is going to last. Is that a bad idea?
It depends. The arrangement you described would create what is known as a "month-to-month periodic tenancy." This is a legal term that means the lease will continue for one-month periods as long as neither you nor your landlord decides to terminate the agreement. Either you or your landlord can terminate the lease as long as proper notice is given. The proper notice necessary to terminate your potential lease would be one month, because you are creating a month-to-month arrangement. This might be good if you want the flexibility to end the lease after only renting the property for a short period. Alternatively, this could be a bad arrangement if you hope to rent the property for a long period of time, because your landlord could terminate the lease with only one month's notice.
My potential landlord says she has never used a lease in the past and doesn't want to use one with me. Is that OK?
Your landlord wants to create an oral lease. Oral leases are enforceable as long as they are for 12 months or less; however, the problem with oral leases is proving the terms of the lease agreement if a dispute arises between the landlord and tenant. Many contested situations come down to one person's word against the other. Generally, if a landlord is making legitimate promises, then they should not have any reservations about putting these assurances in writing. Remember that a good written lease can protect your rights as well as the landlord's.
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Dawson, Sodd, Ellis & Hodge LLP, www.dawsonsodd.com.
The material in this column is for informational purposes only. It does not constitute, nor is it a substitute for, legal advice. For advice on your specific facts and circumstances, consult a licensed attorney. You may wish to contact the Lawyer Referral Service of Central Texas, a non-profit public service of the Austin Bar Association, at 512-472-8303 or www.austinlrs.com.