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#Property Law in United States

Anti-discrimination law is pro-tenant

US laws and practices are PRO-TENANT.

Rent: Can landlord and tenant freely agree rents in the US?

Rents are generally freely negotiated except for communities in four states with rent control ordinances. These rent control ordinances, contained in local laws, are sometimes called rent stabilization or maximum rent regulations.

2008 ALLOWABLE RENT INCREASE

Source: each city or state’s rental authority

Deposits

Out of 51 states, 24 states do not have statutory limits on security deposits. The remaining 27 states limit the security deposit to a range from one month’s rent to 3Ѕ months’ rent. All states require that the security deposit be returned after the tenant leaves. Deductions for unpaid bills and repair are allowed as long as they are itemized.

Most states require that the deposit must be placed in a bank account, separate from the landlord’s account. There are differences between states as to whether the deposit must be returned with interest. If required to pay interest, bank interest rates or the Federal Funds rate are typically used. In some states, landlords are given an option on whether they want to put the money in special interest or non-interest bearing accounts. Most landlords elect the non-interest bearing option if given the choice.

There are also differences on the amount of time required for the landlord to return the security deposit. The states of Alabama, Tennessee, West Virginia, Wisconsin, and Wyoming have no statutory deadline for the return of security deposit. For most states, the deadline is one month. The earliest deadline is 14 days for Arizona, Hawaii, South Dakota, Vermont and Washington. The most lenient is 45 days for Mississippi. Kentucky gives 30 to 60 days depending on whether the tenant disputes the deductions or does not. New York is ambiguous with its legislated “reasonable time” deadline, in practice it is about one month.

What rights do landlords and tenants have in the US, especially as to duration of contract, and eviction?

There are two main tenancy agreements, a lease and a rental agreement. Unless otherwise stated in the contract, the tenant must leave the rental unit after the expiration of the contract or after the specified notice is given. No justification is needed for refusing to renew the contract.

Rental agreements provide for a tenancy of a short period (often 30 days) that is renewed automatically at the end of the period unless the tenant or landlord (sometimes the law states who should give the notice) ends it by giving written notice and the tenant must comply. The written notice is usually one rental period or one month for month-to-month rentals. The landlord can also change the terms of the agreement like the amount of rent (unless local rent control ordinances prohibit it) with proper written notice (typically one month also).

A written lease, on the other hand, gives a tenant the right to occupy a rental unit for a fixed term -- typically 6 months or 1 year but can be longer -- if the tenant pays the rent and complies with other lease provisions. The landlord cannot adjust the rent or change other terms of the tenancy during the lease, unless the tenant agrees. Unlike a rental agreement, when a lease expires it does not usually automatically renew itself and the tenant must leave. The contract usually provides a provision for a renewal and the amount of notice required.

A tenant who stays on with the landlordґs consent after a lease ends becomes a month-to-month tenant, subject to the rental terms that were in the lease.

The eviction procedure differs in each state, in terms of how termination notices and eviction papers must be written and served, but the basic principles are similar. A landlord may bring a summary non-payment court proceeding to evict a tenant after giving one of these three notices:

• Pay Rent or Quit notices: used when the tenant has not paid the rent. They give the tenant a few days (three to five in most states) to pay or move out (“quit”).
• Cure or Quit notices: given after a violation of a term or condition of the lease or rental agreement, such as a “no pets” clause. The tenant, usually, has a set amount of time in which to correct, or “cure,” the violation. A tenant who fails to do so must move or face an eviction lawsuit.
• Unconditional Quit notices order the tenant to vacate the premises with no chance to pay the rent or correct the lease or rental agreement violation. In most states, unconditional quit notices are allowed only when the tenant has:
  • repeatedly violated a significant lease or rental agreement clause;
  • been late with the rent on more than one occasion (in some states, the law defines the number of days before the rent is considered late);
  • seriously damaged the premises;
  • engaged in serious illegal activity, such as prostitution on the premises.

The process of eviction should be handled with caution in the US. Only a sheriff, marshal or constable can actually carry out a court-ordered warrant to evict a tenant. An evicted tenant can even file a case for intentional infliction of emotional distress against the landlord. In some states, the tenant can collect damages and still remain in the premises. When a tenant is evicted, the landlord may not retain the tenant’s personal belongings or furniture.

How effective is the American legal system?

Despite the country’s free-market orientation, US laws on landlord and tenant tend generally to be oriented towards the tenant. The general position is that landlords have more responsibilities, and tenants have more rights. In the absence of specific provisions in these laws, the courts usually lean in favor of tenants.

Examples of laws which may disadvantage the unwary landlord include the strong anti-discrimination provisions of the Fair Housing Act as Amended (Title 8) and other state laws. So onerous are these laws, that landlords are advised to ask prospective tenants to submit written applications complete with histories and references. To avoid lawsuits, it is best if a landlord writes a report giving specific reasons why one prospective tenant has been chosen over the others, such as credit standing and job stability. The US Department of Housing and Urban Development is the main implementer of the Fair Housing Act.

Under the Residential Lead-Based Paint Hazard Reduction Act of 1992, the landlord must disclose any known lead-based paint or hazards in the property. If the landlord failed to inform his tenants and the tenants were diagnosed with lead-induced injuries, the landlord can face a fine of $10,000 plus three times of what the tenant suffered in damages. If the unit was constructed after January 1, 1978, most-likely it is lead free.

EVICTION FOR NON-PAYMENT OF RENT