Off-Campus Life Guide



II. Leases

The lease is a legally binding contract between the tenant and the property owner which spells out the conditions under which housing is rented. Keep in mind that the lease contract is an agreement between two parties. It not only includes the responsibilities of the manager or owner, but the resident's responsibilities as well. If either party does not fulfill the lease obligations, the other party could decide to take legal action. It is very important that you fully understand your rights and responsibilities as outlined in the lease agreement.

A. Types of Leases
B. Clauses to Look for
C. Before You Sign the Lease
D. Breaking the Lease
E. If Problems Arise

A.TYPES OF LEASES


1. Written Leases
A written lease specifically outlines the terms of a tenant/landlord rental agreement. Once you sign a lease for a set length of time, you and the property owner are obligated by law to fulfill the lease. Your lease is a financially binding contract.

READ THE LEASE CAREFULLY- before signing it and know exactly what is expected of you. Just because you have read one lease does not mean that you automatically know what is contained in another one.

If you have questions about your lease, bring it to the OCSA office before signing it. Be sure to keep a copy of the lease after the contract is finalized. One of the advantages of a written lease is that your rent cannot be raised during the length of time specified in the agreement unless it contains a rental escalation clause. Any oral agreements which add to or change the lease should be written into the lease and initialized by both parties. You should make sure your lease coincides with the amount of time you wish to stay. Many landlords will not allow you to break a lease. This means that if you move out before the lease is up, you will be responsible for the rent on the remaining portion of the lease.

2. Oral Agreements
Under Arkansas law, a property owner and tenant cannot enter into an oral lease for a term longer than one year. The major disadvantage of the oral lease is that, while the tenant is not promising anything in writing, neither is the owner. This means that the owner can raise the rent with one month's notice. The property owner is not obligated to make repairs unless it is verbally agreed that he or she will do so.

Verbal agreements are difficult to prove. If you enter into an oral agreement, make sure that you have at least one impartial witness to the agreement. Be sure to clarify arrangements for repairs, subletting, pets, etc. as they should be handled with a written lease.

B. CLAUSES TO LOOK FOR


The following clauses should be included in your lease. They clarify the contract and define the rights and responsibilities of you and the property owner.

DESCRIPTION OF THE PREMISES- including address, apartment number, furnishings, etc.

TERM OF AGREEMENT- the precise beginning and ending dates of the lease.

RENT- the amount, how it is to be paid, the date it is due and penalties for late payment.

SECURITY DEPOSIT- the amount and the condition for refund.

ALTERATION GUIDELINES- whether or not you can build shelves, hang pictures, etc. Most leases require prior consent of the property owner before any alterations

REPAIRS AND MAINENANCE- This section of the lease also includes the procedures for requesting repairs. If the lease contains no provisions relating to the responsibility for repairs, the tenant is generally considered responsible. Do not accept the manager's verbal promise if you have a written lease. In most cases, only that promise which is in writing is legally binding.

UTILITIES- whether you or your property owner pays for electricity, gas and water.

SUBLEASING OR RE-LEASING- what does it entail?

RULES AND REGULATIONS- what rules does the manager expect you to obey? What are the consequences of breaking them?

ENTRY- when can the manager enter your apartment, and for what reason?

JOINT LIABILITY- A "jointly and severally liable" clause means that every one who signs the lease is responsible for the entire rent. This means that if any of the tenants leave before the lease term expires, the remaining tenant(s) are still responsible for paying the entire rent.

LANDLORD'S LIEN- If you fail to pay your rent, most leases allow the property owner to enter your apartment and seize luxury items such as televsions, radios, cameras, furniture, etc. Such a provision is valid only if underlined or in bold print in the lease.

RENTAL ESCALATION CLAUSE- Allows the manager to raise the rent during the lease term. This clause specifies the amount and conditions.

C. BEFORE YOU SIGN THE LEASE


Take note of a few items before you sign your name to the lease:

1. If you intend to live with a roomate, find someone capable and responsible before signing the lease.

2. An application for rental may be required before you actually sign the lease. This application will often state whether the deposit is refundable or not and how to get your deposit back after you move out. Be sure to make a copy of your rental application and do not sign the application unless you intend to live in the specified apartment.

3. Read your lease agreement carefully and ask the property manager to clarify anything which is unclear to you.

4. Do not make oral agreements- Any oral agreement made must be put in writing in order to be legally binding. For example, if the manager tells you that certain repairs will be made or that additional furnishings( carpet, stove, etc.) will be added to your apartment before you move in, make sure that this is added to the special provisions section of the lease.

5. A security deposit will be required by most managers- this deposit will offset any damages or unpaid rent. See the LEASES section of this guide for more information on security deposits.

6. If the apartment allows pets, it is usually required that you sign a pet agreement. This usually requires an additional deposit. Find out in advance about any special pet provisions.

MOVE IN COSTS-Your first month in an apartment will be the most expensive. It is important to plan for the additional money required to get started. With the utilities installation charges and deposits, phone, cable, rent, and additional groceries, the move-in cost may amount to over $1,000 if you are living by yourself. For details on how to Survive these move-in costs see seperate sections on Security Deposits, Utilities, and Budgeting.

MOVE-IN CONDITION REPORT OR INVENTORY-

1. Within 48 hours of the time you move into the apartment, it is highly suggested that you complete an inventory which lists the condition of the property. Such an inventory is one of your best defenses in any dispute over deductions in your security deposit when you move out. Such a report should be very detailed. For example, include the number of ice trays, nail holes or marks in the walls, and the condition of the floors, ceilings, fixtures, furniture, appliances, etc. Be sure to check security items such as locks and windows. A copy of such an inventory list can be obtained from OCSA.

2. Have your manager sign and date the inventory form. Keep a signed copy for your files.


MOVING OUT- At least 30 days before you plan to move out, notify the manager in writing. When you are ready to move out, make an appointment with your manager to jointly inspect the apartment and compare the condition of the unit with the Move-In Inventory report you completed at the begining of the lease term. If you feel there may be a discrepancy, you may want to take photographs to prove the apartment condition.

Be sure to complete a change of address card and return it to the Post Office nearest you at least 10 days before you move out. Any company that you are expecting mail from( magazine subscriptions, credit cards, etc.) should also be notified.


GETTING YOUR SECURITY DEPOSIT BACK- The requirements for return of your deposit are outlined either in your lease or in the Security Deposit Agreement. The requirements are usually as follows:

1. You should complete the move-in inventory agreement within 48 hours of moving into the apartment.

2. Occupy the unit for the entire lease term.

3. Give written notice of intent to vacate at least 30 days prior to the ending date of the lease. Keep a copy which has been signed by the manager.

4. Clean the apartment in accordance with the manager's move-out cleaning instructions and keep a copy of the receipt of cost. This may help you in the future in getting most of your deposit back.

5. Pay all rent in accordance to the terms in the lease.

6. Complete the move-out inventory and walk through the empty, clean, apartment with your manager.

7. Give the manager your forwarding address in writing. Within 30 days after you vacate the apartment, the manager is required by law to either refund the security deposit or to furnish you with a written, itemized list of all the deductions.

D. BREAKING THE LEASE

You may find that you may want to move out before your lease term has ended. Although your reasons may seem valid to you, moving out before your lease expires is a breach of contract and the property owner may be entitled to damages.

It is not fully correct to assume that you only lose your security deposit if you break your lease. You can be sued for the remaining rent you owe. If you are unable to pay your debt, a judgement may be filed against you which lasts 10 years and is renewable for another 10 years. This means that certain personal property you acquire during this period can be used for payment of the damages. A judgement on your record can prevent you from obtaining loans and other credit or result in a jail sentence. Many apartment managers and property owners report residents who break their leases to the local Credit Bureau. This could have impact on your future ability to obtain credit.

If it is necessary for you to move out, there are several things you can try to do to lessen the damage of breaking the lease and thus reduce future risks. These are as follows:

1. negotiating

2. subleasing

3. re-leasing

NEGOTIATE- It may be possible for you to negotiate with the property owner to allow you to terminate the lease. If you and your property owner reach an agreement, make sure that the agreement is in writing and signed by both parties.

SUBLEASE- A sublease is an agreement in which you rent your apartment to another person with the property owner's permission. Before you consider this alternative, be sure to ask your manager if he/she will allow subleasing. Some managers may not. According to a sublease, you become a sub-manager; you are still responsible for the apartment including damages and rent. You are not entitled to recieve your security deposit until your lease term ends.

RE-LEASE- In a re-lease, you are responsible for finding a person who is willing to lease the apartment. An agreement is made by all parties which states you are no longer liable for the apartment. A new lease is created between the new tenant and the property owner which terminates your lease. If you found the replacement, then you are entitled to have your security deposit refunded.

If you or your roomate move out during the lease term, both of you are jointly liable for the entire rent due. Because of this "joint liability" for rent that roomates share, the manager may choose to pursue one or both romates for the rent due. The manager will usually pursue the roomate or roomates still remaining in the apartment. This is why it is important that you find responsible roomates.

If your roomate should move out during the lease term there are several options:

1.
Find someone else to move in with you.

2. Filing suit against the roomate who move out through the Small Claims Court( if $3,000 or less).

3. If you and your roomate(s) are having difficulties which can be resolved through a compromise, a mutual agreement may be reached with the help of OCSA. Many times an impartial third party can assist with alternatives.


CHANGING THE LEASE- Before you sign a lease you should know that it may be changed by negotiating with your landlord. All changes should be written in the lease and initialed by you and your manager.

Be certain that changes on all copies of the lease are done in ink and that all parties have initialed the changes. If you and your manager should agree to make any changes in your lease after you sign the lease. This written agreement should be dated and signed by both you and the property owner. Be sure to keep a copy for your files.

E. IF PROBLEMS ARISE


REPAIRS- Your lease should contain a clause which includes repairs and maintenance. The lease will state what responsibilities, if any, the owner will assume concerning repairs and maintenance. Not all leases require the property owner to make ordinary repairs. Most leases containing repair clauses require that the following steps be taken to request that repairs be made:

1. Give your property owner a written notice. A work order filled out by the manager is not sufficient. Write a letter requesting that repairs be made. Make a duplicate copy and have the manager sign both copies. Be sure to keep one copy for your files. If the manager refuses to sign the request for repairs, send the notice by certified mail. This costs about $3.00 at the post office and includes a returned receipt showing that the manager recieved the notice.

2. Wait a reasonable time. Reasonable time depends on the nature of the repair. A clogged toilet would be easier and more quickly repaired than a broken dishwasher knob.

Repairs requested at peak move-in times will require more time than other periods of the semester. Holidays should also be considered when defining "reasonable time". On the average, 5 to 7 working days should be sufficient as long as regular maintenance personnel can do the work.

3. Submit a second written notice if repairs have not been made within a reasonable time. Again, have the manager sign both copies and keep a dated copy for your files. In your second notice, indicate that you may consider terminating your lease or making a complaint to the housing inspector if repairs are not completed within one weeks time ( this time period may vary from lease to lease).

You cannot force the management to make repairs, your only alternative if repairs are not made could be to move, if the lease gives you this option. You cannot legally withhold rent because repairs are not made. In some cases, you may negotiate a rent reduction agreement with your manager. The law implies a warranty by the property owner that the apartment or house will be habitable. This means that the property owner must make any repairs that would ensure the safety or health of the average tenant. The law provides a procedure for requesting repairs and gives a tenant specific rights in court against the property owner if repairs are not made.

Security Deposit

If you have fulfilled the conditions for the return of your security deposit, then your manager is required to refund your security deposit within 30 days after you vacate or to provide you with a written itemized list of the deductions. If you do not recieve such information within 30 days, contact your property owner to see if there was a simple oversight. If you do not agree with the property owner's deductions, discuss the issue with the property owner. If the discrepancy is still unresolved, seek legal advice. Remember, your security deposit is not intended to cover your past due rent.

Rent Incresases

Some leases contain a clause which allows rent increases during the lease term. Many leases containing such a clause require that the management give you 30 days written notice before any increase can occur. If your lease does not contain such a clause, then only when your lease expires can the management raise the rent. If you remain in the apartment after the end of your lease, it automatically becomes a month-to-month. This means that your manager can raise the rent if 30 days written notice is given. A few leases require that you either move at the end of the lease term or sign a new lease. If you live in an apartment where the manager pays any or all of the utilities, your lease may contain a provision allowing the manager to add a utility charge to your rent during the lease term to compensate for the rising cost of electricity and gas. If you have questions about the necessity of such a charge, ask your manager for appropriate proof or justification.

Eviction

A property owner may evict a tenant for violation of conditions specified in the lease, destruction of property well beyond normal wear and tear, and for non-payment of rent. The manager must give the tenant 1-3 days written notice ( depending on the lease) of his/her intent to evict. If the tenant refuses to move, the manager may file an eviction lawsuit in the Justice of the Peace Court to forcibly evict the tenant. An eviction requires that you be given legal notice and an opportunity to appear in court.


How To File A Complaint

If you encounter problems with your manager or property owner, you may file a complaint with the Off-Campus Student's Association.

OCSA maintains a Resident Reaction File for people to examine when they are looking for housing. This is an avenue through which renters may inform other renters of their living experiences. By filing a complaint, you can help other renters become informed consumers.

You may also file a complaint with the Fayettevile City Inspection Dept. ( 575-8233) or (575-8229) if you believe that a condition violates any health code standard, state law or city ordinance.

Small Claims Court

The most valuable judicial process open to you for tenant/landlord or roomate conflicts is the Small Claims Court. In these courts you do not need a lawyer to speak for you, both parties present their case informally to the judge who acts as a mediator.

Small Claims Court handles claims up to $3,000. If you have a claim greater than $3,000 contact OCSA for filing information. To begin the suit proceedings, yiou must file a petition in the office listed below:

Fayetteville Municipal Court
100B West Rock
Fayetteville, AR 72701
(501) 587-3591

The filing fee for Small Claims Court varies depending on the amount of the claim and service required. Small Claims Court fees start at $25.00, and an addition charge is added depending on how you choose to have the summons served.



THE LEGAL CLINIC

The Legal Clinic is the office which provides legal advice and counceling on all misdemeanor criminal cases. Some examples are: assault and battery, hot checks, and DWI. To make an appointment, call the office at 575-3056.

THE OZARK LEGAL SERVICE

If you fit within the federal poverty guidelines, you may be eligible for help from the Ozark Legal Service. Located at 26 East Center, Ozark Legal Service deals with civil cases such as custody issues, tenant/landlord disputes, emergency divorces, etc. For more information or to set up an appointment, call442-0600 between 8:30 a.m. and 5:00 p.m. Monday through Friday.

If you need a referral to a lawyer in your area, you can call the Arkansas Bar Association in Little Rock at 1-800-482-9405.


ROOMMATE AND PERSONAL CONFLICTS

A frequent problem arising between roomates is when one roomate moves out leaving the other responsible for the entire rent. Legal issues reguarding this matter have been discussed on previous pages. The easiest way to deal with roomate conflicts is to communicate with one another and to discuss possible solutions and alternatives to the situation.

If you have a problem with your roomate, come to OCSA's office. We will assist you in exploring ways to deal with the situation. An unbiased third party can often mediate a solution which is acceptable to both roommates.

If you are the one who decides to move out, communicate your intentions to your roomate. You should make every effort to find a suitable replacement. If you cannot find someone to take your place, attempt to negotiate a financial settlement with your roomate. Remember, if your roomate cannot afford the rent and moves out, all parties on the lease can be sued by the property owner for the remaining rent owed in the lease term.

Personal problems can cause roomate conflicts. If you or your roomate are having difficulty with grades, choosing a major, family or personal relationships, the individual stress will also strain the roomate relationship. The student Counseling Service may be of assistance in these situations.

North-West Arkansas Apartment Guide

***All information contained in this guide was supplied by the listed apartment complexes. While all efforts have been made to provide accurate and current information, no garentee is given with regard to the accuracy of the material contained herein.***

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Last Updated August 23, 1996

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