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Greed Is Legal – But It Doesn't Make A Lease Valid.

By
Real Estate Broker/Owner with KGC Properties LLC, Tucson Property Management & Real Estate

One thing that bugs me when meeting new or prospective tenants is hearing, “My old landlord “did this”, ”had this in the lease”,  “Kept my security deposit because…” – especially when it comes to DIY landlords.

The reason it bugs me is because many landlords make false claims, put things in their leases that aren’t legal or valid - claiming that their rules and lease is “standard”.

My shout out to tenants today is protect yourself.  There is no such thing as a standard lease.  There are many “stock” leases available for purchase,  many landlords write up their own leases, etc., and unfortunately, many leases contain errors.

There are good landlords, but you have to really protect yourself against are the greedy ones – they ask for crazy security deposit amounts or fees, they write unusual things in their leases in attempts to keep your security deposits or to have you be responsible for repairs, etc. 

A couple tips for today:

There is a difference between “laws” and “rules”.  For landlord/tenant laws and what a landlord/tenant can and can’t do – best resource is the Arizona Landlord Tenant Act.  For rules – each landlord/management company has their own rules contained in a lease, or on separate addendum.  But the rules must not violate laws, such as discrimination, habitability, etc.

An invalid clause in your lease doesn’t necessarily invalidate your lease – so be careful of trying to break your lease based on one paragraph.  Always check and ask questions before you break your lease.

Posted by

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com .

                                                 

 

This blog is written with my opinions and my opinions are  presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions.    Gabrielle Kamahele Rhind - 2014. If you want to reprint parts of this - just email me for my permission: KGCProperties@gmail.com .

 

Comments(24)

Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

KUDOS for pointing out that there are no STANDARD lease forms eventhough many landlord or property managers may be using pre-printed forms...

Oct 21, 2012 11:36 PM
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

I recommend that all tenants verify who the owner is in the public records.  Then verify that the person signing the lease and giving you the keys is that person - ask to see a picture ID.  And if a property manager ask to see their real estate license and proof that they have an agreement with the real owner.  So many scammers out there stealing money from tenants who simply don't know any better.

Oct 22, 2012 12:40 AM
Fred Sed
Fred Sed Group ~ Your Premier Southern California Realtors - Irvine, CA
Your Southern Cali Realtor, Why? Because Fred Se

Great post! This should be a MUST READ for any landlord or tenant before agreeing to the terms of the contract. Too many times landlords don't know the law and tenants don't know their rights.

Oct 22, 2012 03:42 AM
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Gabrielle, we agree.  We quit an investment group after one of the leaders suggested two different contracts depending on whether you were the seller or buyer - in others words to take advantage!

Oct 22, 2012 04:30 AM
Roger Newton
Roger Newton Real Estate - North Plains, OR

It is best to use a trained property management company if you are unsure.

Oct 22, 2012 04:39 AM
M. Lynn Delatte
Developers Realty - Broadview Heights, OH
Have seen both owners and renters be taken advantage of. A good written lease that both understand is essential.
Oct 22, 2012 04:40 AM
Brian Rugg
Rugg Realty LLC Sun City Texas 512-818-6700 - Georgetown, TX
Sun City TX Real Estate - Georgetown, TX Real Est

Hello Gabrielle:

 

I have been doing more rental work here in Sun City Texas since many buyers want to "try before they buy".  In many cases this ends up with the tenants becoming purchasers, so a nice pipeline of business.

When I get involved in a lease I only use the standard form promulgated by the State of Texas Association of Realtors  and no other.  It is fair, balanced, and protects both parties in case something goes wrong.  Glad to see this was featured.

Oct 22, 2012 04:54 AM
Kimo Jarrett
Cyber Properties - Huntington Beach, CA
Pro Lifestyle Solutions

Great post and lessons about the rules and the law. Every state has different laws, rules and regulations so before you explore tenant opportunities, some research on the laws, rules and regulations should be researched, shouldn't it?

Oct 22, 2012 07:52 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Tenants moving from one state to another should be sure to check the laws in their new state - as they might be different from the ones in their old state.

Oct 22, 2012 09:05 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Great advice. One thing is to always understand what you are signing. Problems won't arise if you know what you can or cannot do.

We have a paragraph in the 'buy it off the shelf lease' that states the landlord cannot be sued.  In IL, that is against the law or unenforceable because you cannot write that you cannot sue anyone.  Most times it's in every standard lease that we use & we just leave it there so we aren't practicing law.

Oct 22, 2012 09:15 AM
Mike McCann Nebraska Land Broker
Mike McCann - Broker, Mach1 Realty Farm & Commercial Land Broker-Auctioneer Serving Nebraska - Kearney, NE
Farm & Commercial Property For Sale 308-627-3700

Gabrielle...this is great advice. I have talked until I am Blue in the face that the University here should make Renting 101 a mandatory class.  I see so many students get taken advantage of.

Oct 22, 2012 09:56 AM
Terkel Sørensen
Real Estate Places - Temecula, CA
Realtor, 951.805.0773 , Bank owned and Short Sales

Gabrielle - great advice! I don't handle tenants, so I don't have good stories, but I know of them...

Oct 22, 2012 10:15 AM
Rob Renk
Center Street Lending - McKinney, TX
AE | Fast Fix/Flip Loans for Residential Investors

Great tips on leases and landlords.  Good post.

Oct 22, 2012 08:47 PM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

I was asked to review a lease recently that claimed it was illegal to move out at any time with out the landlords written permission. This from a professional management company.

This was one of the tamer clauses.

Bill

Oct 22, 2012 11:25 PM
Nan Jester
Exit Real Estate Gallery Jacksonville Beach, FL - Jacksonville Beach, FL
Realtor, Exit Real Estate Gallery

Good afternoon Gabrielle. The law is pretty much the same here in Florida. One boo boo doesn't invalidate the rest of the contract.

Oct 24, 2012 06:05 AM
Karen Steed
Tallapoosa, Bremen, Waco, Buchanan, Temple, Carrollton - Tallapoosa, GA
Associate Broker Haralson Realty

I second Rob's advice on rentals.  There are so many crooks renting properties they have no right to rent, that it pays to check things out thoroughly.  Also, many people are renting out homes and not making the payments to the bank, so renters are being kicked out after the foreclosure.

Oct 26, 2012 01:51 AM
Brad Baylor
ERA Coup Agency - Milton, PA

Gabrielle - This is great advice to anyone looking to rent.  Thanks for the post!

Oct 29, 2012 12:09 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

When it comes to renting stuff I trust Wallace.  I suspect the rental market is so tight that rentors have to settle for lots of stuff - but it should be legal.

Oct 29, 2012 12:14 AM
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

Some Landlords are creeps. Tenant Laws in Oregon counter that. They are heavily in favor of the Tenant.

Dec 04, 2012 12:46 PM
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Good points, nice concise and to the poiint with great information.  I sell real estate but I don't know a ton about leasing and even have two rentals that I do not manage myself, we hired professionals. -Kasey

Jan 18, 2013 07:32 AM