A Dictionary of Landlord / Tenant Terms – Part III

Instead, of relying on a lawyer who charges an arm and a leg to decode some of the legal clauses that are found in typical residential leases or rental agreements, it is important landlords and tenants alike, familiarize themselves with the definitions for a number of common words and phrases that arise in the context of the landlord-tenant relationship.

1. Rent control is to be found mostly in urban areas. Rent control laws place a limit on the rental amount a landlord is allowed to charge tenants, of course subject to certain restrictions. As well, most rent control laws permit annual increases in rental charges of about 2.5%.
2. Right of entry limits a landlord’s right to enter premises that are in occupation by his / her tenant. A landlord can only enter rental property leased to a tenant, in emergency situations, or to show the unit to prospective tenants, or else to carry out repairs or renovations. A 24 or 48-hours notice has to be issued in advance to the tenant, before a landlord can legally enter an occupied apartment or unit.
3. Security deposit is money that is refundable and is to be paid to the landlord, at or before a tenant’s move-in date. It is a monetary amount that is held in deposit by the landlord, to guarantee a tenant adheres to lease obligations, i.e. not to damage the rental property beyond normal wear and tear, and timely payment of rent. Just as most states have set limits for the amount of rent a landlord can charge, similarly a limit has also been set on the amount that can be demanded as security deposit. Always, it is wise to state the security deposit amount in the lease or rental agreement, as well state what it will be used for, where it will be held, and what percentage of interest it will earn.
4. Sub-letting or Assignment allows a tenant the right to sub-lease or assign the property, if unable to fill out the lease term, or in case he / she wishes to rent out part of the rental accommodation to another individual, in order to meet the rent. This lease clause should specify the conditions under which a tenant can avail of this right. It should be clear though, even under a sublet, an original tenant still holds responsibility for honouring lease provisions. However, in the case of assignment, the original tenant is no longer in the picture and has no further liability under conditions of the lease.
5. Tenant is a person, who has been given the right to use and occupy property that is owned by another person, who is known as landlord, and usually under a lease or rental agreement. The tenant’s exclusive enjoyment of the rental property is granted in exchange for an agreed upon sum of money for fixed period of time, usually set out in the lease.