Leases and Rental Agreements

AuthorRichard Leiter
Pages765-778

Page 765

When an individual agrees to rent or lease real estate property the tenant signs either a lease or a rental agreement with the owner of the property outlining the terms of the agreement. The difference between rentals and leases is that the terms of leases are generally for at least one year, though lease payments are usually paid by the month. Terms for rentals are generally month-to-month, although they are occasionally paid on a weekly term. Virtually all states recognize that at the end of a lease, the term converts to a month-to-month rental unless a new lease is signed and the landlord continues to accept monthly payments.

Many states have imposed limits on the size of security deposits safeguarding against damage to the property that may be collected by landlords. The highest deposit stated in a statute is three months’ rent for a furnished property, but generally the limit is one month’s rent. A number of states require landlords holding deposits to add interest when it is returned. Landlords are also required by most states to itemize any deductions taken from deposits and return them within set time periods after the lease is terminated.

Most states have statutes limiting discrimination by landlords. Under these statutes, landlords are prohibited from not renting to certain classes of people, for example, those with young children and pets. New classes are also finding their way into the law books. Since 1993 several states have added sexual orientation, familial status, and national origin to the list of prohibited bases for discrimination by landlords. State legislatures generally ensure equal access to housing to the broadest range of citizens.

Page 766

Table 48: Leases and Rental Agreements
State Code Section Terms of Leases Deposits Discrimination Uniform Residential Landlord & Tenant Act Adopted?
ALABAMA 24-8-4; 24-8-7; 35-9-4 Renting for an unspecified term is presumed to be for the length of time used to estimate the rental amount, in absence of agreement respecting length of time for rent, renting is presumed to be monthly No discrimination on basis of race, color, religion, sex, familial status, national origin; municipal corporations may zone/regulate as to different classes of inhabitants, but not to discriminate against or favor any class of inhabitants; housing for older persons exempted No
ALASKA 18.80.210; 34.03.020, 070, 290 Unless otherwise agreed, rent is payable monthly and shall be term of month-to-month Limit of 2 months rent (unless rent exceeds $2,000/month), interest on deposit not required; deposit must be returned within 14 days of termination if terminate under §§34.03.290, otherwise 30 days No discrimination on basis of sex, physical/mental disability, marital status, changes in marital status, pregnancy, parenthood, race, religion, color, national origin Yes
ARIZONA 9-462.01(A) (11); 33-303, 342, 1321; 41-1491.14 Lease does not automatically renew but is converted into a tenancy from month-to-month Limit 1½ months’ rent; interest on deposit not required; deposit must be returned within 14 days of termination No discrimination on basis of race, color, religion, sex, familial status, national origin; any municipality may establish age-specific community zoning and may restrict residency to head of household or spouse of specific age or older and prohibit minors; housing for older persons exempted Yes
ARKANSAS 18-16-304, 305 When rent accepted by a landlord of a holding-over tenant, the term becomes a tenancy from year-to-year. (Jonesboro Trust Co. v. Harbough, 244 S.W. 455, 456 (Ark. 1922)) Limit of 2 months’ rent; interest on deposit not required; deposit must be returned within 30 days of termination No

Page 767

State Code Section Terms of Leases Deposits Discrimination Uniform Residential Landlord & Tenant Act Adopted?
CALIFORNIA C.C. §51.2, 1945, 1950.5; Govt. Code §§12920, 12955 If tenant remains in possession and landlord accepts rent, parties are presumed to have renewed lease on same terms and for same time, not to exceed 1 year Limit 2 months rent for unfurnished, 3 months rent for furnished; interest on deposit not required; deposit must be refunded between 21 and 60 days from date of termination No discrimination based on race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status or disability; special accommodations for senior citizen housing, familial status or disability No
COLORADO 24-34-502; 38-12-102, et seq. Interest on deposit not required; damages subtracted must be itemized and balance returned within 1 month of termination unless otherwise agreed, but never over 60 days. No discrimination on basis of age, sex, marital status, familial status, handicap, race, religion, creed, color, national origin, but does not prohibit compliance with local zoning ordinance provisions concerning residential restrictions on marital status No
CONNECTICUT 46a-64c; 47a-3d; 47a-21 Holdover not evidence of a new lease; converts to month-to-month Tenant under age of 62: limit 2 months rent; tenant over 62: limit 1 month rent; interest on deposit required; deposit must be refunded within 30 days or within 15 days of receiving tenant’s forwarding address No discrimination on basis of race, creed, color, national origin, ancestry, sex, marital status, age, lawful source of income, familial status; may refuse to rent to people not blood related who are not married; public or private programs allowed to assist persons over 64 as long as there is no discrimination on basis of age among those eligible No
DELAWARE Tit. 6 §4603; 25 §5514 Tenant remains in possession and landlord accepts rent, creation of new tenancy from year-to-year is inferred (Makin v. Mack, 336 A.2d 230 (1975) Limit 1 month rent; interest on deposit not required; deposit must be returned within 20 days of termination; if deposit not returned within 30 days, tenant entitled to double the amount of security deposit No discrimination on basis of race, age, marital status, creed, color, sex, handicap, national origin No

Page 768

State Code Section Terms of Leases Deposits Discrimination Uniform Residential Landlord & Tenant Act Adopted?
DISTRICT OF COLUMBIA 42-3505.05, 2-1401.01 42-3502.09,.17 Receipt of rent for new term or part thereof amounts to waiver of landlord’s right to demand possession) Shapiro v. Christopher, 195 F.2d 785 (D.C. Cir. 1952); Byrne v. Morrison, 25 App. D.C. 72 (1905)) Interest on deposit required at 5% annually for all deposits after 2/20/76, only for deposit on tenancy for 12 months or more; deposit returned within 45 days of termination No discrimination on basis of race, color, religion, national origin, sex, age, marital status, personal appearance, sexual orientation, family responsibilities, gender identity or expression, genetic information, physical handicap, matriculation, political affiliation, source of income, place of residence or business; also illegal to discriminate against families receiving or eligible to receive Tenant Assistance Program assistance No
FLORIDA 83.04, 49; 760.23 Mere payment of rent is not construed as a renewal for the term; but if tenant holding over does so with written consent of landlord then it becomes a tenancy at will; otherwise tenancy at sufferance No limits on deposits; landlord may elect to (1) put deposit in non-interest bearing account; (2) hold in interest bearing account at either 75% of average rate or 5%; or (3) post a surety bond and pay tenant interest at 5%; landlord must tell tenant in 30 days which he’s doing; must return deposit within 15 days No discrimination on basis of race, color, national origin, sex, familial status, handicap, or religion; same as Fair Housing Act Yes
GEORGIA 8-3-201, 202; 44-7-31 Rent accepted after expiration of 1 year lease implies renewal of lease for another year (Allen v. Montgomery, 105 S.E. 33) Deposit must be deposited in escrow account and held in trust for tenant; any damages subtracted must be itemized and deposit must be returned within 30 days of termination No discrimination on basis of race, color, religion, sex, handicap, familial status, or national origin; allowable housing for “older people” included in statutes No

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State Code Section Terms of Leases Deposits Discrimination Uniform Residential Landlord & Tenant Act Adopted?
HAWAII 515-3, 4; 521-44, 71 Landlord accepting rent in advance after First 60 days of holdover creates a month-to-month tenancy absent contrary agreement; absence of any agreement makes term equal to that at which the rent is computed; notice to quit must give 25 days Limit 1 month rent; no interest on deposit required; deposit must be returned within 14 days of termination No discrimination on basis of HIV infection, race, sex, color, marital status, parental status, age, sexual orientation, ancestry,
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