I get these questions a lot. So much, in fact, that a blog post on these specific issues is warranted.
1. Can a residential tenant terminate a lease within 3, 5, 10 or some other number of days after signing the lease?
No. That one is simple enough. There is no statute and no case that gives tenants this right. Nevertheless, there is an exception. If the written agreement specifically gives the tenant that right (i.e., "Tenant may cancel this agreement within three days" or "Subject to review and approval by Tenant's attorney within the next three days" or some similar language), then the tenant can cancel the lease.
2. Can a residential tenant terminate a lease if the tenant loses his/her job?
No. The only exception is (as above) when the written agreement specifically gives the tenant that right.
3. Can a residential tenant terminate a lease if the tenant loses his/her job?
No. Starting to see a pattern here? Unless the written agreement specifically gives the tenant that right, once the tenant signs the agreement, the tenant is bound by the agreement.
4. Can a residential tenant terminate a lease if there is crime in the area?
No. Crime is everywhere; there is no statute or case that allows a tenant to terminate a lease because of crime in the area. HOWEVER, if the landlord marketed the property as being in a "crime free" area or made some other representations about the complete absence of crime in that area, complex, etc., AND it turns out that the area had a high crime rate, then the tenant would likely be able to terminate the lease -- NOT because there was crime in the area, but because the landlord had "misrepresented" the premises to the tenant. (See A.R.S. Section 33-1361). Similarly, if the landlord misrepresented some other "material information," then the tenant may be able to terminate the lease based upon that misrepresentation. (See A.R.S. Section 33-1361).
5. Can a residential tenant terminate a lease if the tenant is the victim of a crime?
Maybe. The Act, Section 33-1318 (which became effective August 2007), allows a tenant to terminate a lease -- without any financial penalty whatsoever -- if the tenant is a victim of domestic violence and the tenant sends a written request to the landlord to be released from the lease within thirty days after the incident. The tenant must also provide the landlord with evidence of the incident. There is no other statute or case that allows a tenant to terminate a lease if the tenant is the victim of a crime when the crime IS NOT domestic violence.
If the owner of a property is doing a short sale are the tenants required to coninue to pay rent since this means that the owner is no longer paaying the mortgage and the bank is taking a pay off and can the deposit be at risk?
Response by Carlton C. Casler. Yes, you must continue to pay rent. Failure to pay rent exposes you to eviction for nonpayment of rent. Although the owner is not making the payments, the owner is still the owner and is still entitled to collect rent during the time he owns the property. Your rental agreement may provide that the owner's failure to make the property loan payments is a default by the owner, but your remedy is to send a notice of material noncompliance, not to simply stop paying the rent. Yes, your deposits are potentially at risk, but the court will not take any action or allow you to take any action based on what may or may not happen sometime in the future.
Posted by: destiny | February 15, 2010 at 11:23 AM
My tenants are only 2 months in to a 3 year lease and they have given me a 2 week notice due to job loss. What are my options?
Answer by Carlton Casler: As you may have already discerned from other blog posts, a "job loss" or "job transfer" are NOT legal grounds to get out of a lease early (unless, of course, you specifically wrote that into the lease agreement). The tenants have (or soon will) breach the lease by vacating before the end of the lease term. You MUST mitigate your damages, which means you must make "reasonable" efforts to re-rent the property (i.e., put up a sign, run an ad, list with a broker or whatever you normally do to rent the property). Once you re-rent the property, your damages can be calculated with certainty. You can sue the tenants for all the rent you did not receive before you re-rented the property AND all the expenses you incurred to re-rent the property (i.e., ad costs, commissions, rent concessions, etc.). Once you know the amount you can lawfully seek, you will need to decide whether it is "worth your while" to find and then sue the former tenants. If they have bad credit, no money and lots of other debt, you may just drive them into bankruptcy. If, on the other hand, one or both of the tenants is employed (or becomes employed by the time you re-rent the property), it may be worth the time and expense to sue the tenants and get a judgment. I (or others) may make "recommendations," but only you are able to decide whether it is worth you while to pursue the former tenants.
Posted by: Janis Scobee | July 31, 2009 at 07:25 AM
Can a tenant terminate a lease if the property manager/landlord listed on the lease is not listed on the title?
Answer by Carlton C. Casler: An "agent" for the landlord may enter into a lease on the landlord's behalf. The lease should be signed "by Mr. Agent, on behalf of Mr. Landlord." Although the agent has signed, it is the landlord who is bound by the lease. Property managers commonly sign on behalf of the landlord via a general or special power of attorney. The "owner" of the property may or may not be the landlord. For example, the owner may rent to a tenant, who, in turn, sub-lets the property to a sub-tenant. Clearly, the tenant is not the owner, but the tenant is permitted (as long as permitted by the lease with the owner) and legally entitled to sublet to a sub-tenant. If, however, someone enters into a lease as the landlord and that person is not the owner AND does not have the owner's authority to enter into a lease, then that "landlord" has committed fraud and, to the extent a lease exists at all, the tenant may immediately terminate the lease.
Posted by: Mike Seiler | June 24, 2009 at 11:36 AM