Transcript Ohio Landlord-Tenant Law - Sinclair Community College

Landlord-Tenant Law
Real Estate Transactions I
Mike Brigner, J.D.
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Today’s Discussion
 Leases at Common Law & Definitions
 Ohio Landlord-Tenant Law
 Preparing a Residential Lease
 Commercial Leases
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Leases at Common Law &
Definitions
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Lease Law
 Leases are covered by
– Common law of contracts
– Common law of real estate
– Federal & state anti-discrimination laws
– State landlord-tenant law
– Local statutes
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Common Law: Contracts
 A lease is a contract & must meet four basic
criteria for a valid, binding agreement:
–
–
–
–
Offer & acceptance
Consideration
Capacity of parties to contract
Legal subject matter
 Contracts are usually drawn by, & favor,
landlord
– Under contract law, in event of dispute over terms,
all contracts are construed against the drafter
– Best if both parties are represented, and negotiate a
fact-specific and mutually fair agreement
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Common Law: Real Estate
 Historically, caveat emptor, buyer beware
 Tenant took premises as he/she found it
 Landlord had no duty to provide
habitable premises, or to make repairs
– Most states now require habitable condition,
and don’t allow tenant to waive this right
 Landlord only had duty to keep common
areas and fixtures safe
– This idea has carried over into modern law
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Common Law Remedies
 Constructive eviction: If premises
becomes uninhabitable, tenant could
move out & not pay rent
 Distress: If tenant failed to pay rent,
landlord could use self-help: forcibly
remove tenant, and seize tenant’s goods
to satisfy rent arrearage
– Most states, including Ohio, now forbid selfhelp in residential leases, and require a legal
eviction proceeding, with proper notice &
hearing
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Statutory Law
 Common law has been greatly modified, by
statutory law, such as:
 Federal laws
– Fair Housing Act (42 U.S.C. § 3604)
– Handicap accommodation (24 CFR 100.204)
 Ohio statutes
– Landlord Tenant Law (R.C. Chap 5321)
– Ohio Fair Housing (R.C. 4112(H))
 Local ordinances
– Zoning ordinances, health codes, rent caps
– Occupancy & use limits, safety rules
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Ohio Landlord-Tenant Law
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Lease Definitions
 Lease: A document that conveys a leasehold
interest in real property, which includes:
– Right of possession, but not ownership
– For a certain period of time
– In return for the payment of rent
 Statute of Frauds requires any transfer of an
interest in real estate, including a leasehold
interest, to be in writing (R.C. 1335.04)
– Leases for less than one year generally do not have
to be in writing (R.C. 1335.05)
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Parties to a Lease
 Lessor = Landlord
 Party to a lease who owns the property and
transfers occupancy in exchange for rent
payments
 Issue: Does landlord have good title?
 A concern for tenants primarily in long-term &
commercial leases
 They can: do title search
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Parties to a Lease
 Lessee = Tenant
 Party to a lease who occupies the
premises and pays rent
 Issue: Is tenant financially responsible?
 A concern for landlords
 They can: do credit check, get deposits,
get third party guarantees
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Revised Code Chapter 5321
 Applies to residential leases, except:
– Condominiums
– Hotels, motels, tourist homes
– Boarding schools
– Jails
 Does not apply
to commercial
leases
Forbidden Lease Terms
 R.C. 5321.13
 Agreement to pay
other party’s attorney
fees
 Agreement to waive
legal duties of
landlord
 Limitation or
forgiveness of a
landlord’s legal
liabilities
Landlord’s Obligations
 R.C. 5321.04
 Comply with all health, safety,




housing codes
Keep premises fit & habitable
Keep common areas safe &
sanitary
Supply running water, hot water,
reasonable heat
Give reasonable notice (24 hours)
of intent to enter, except in
emergencies
Landlord’s Restrictions
 R.C. 5321.15
 Forbids landlord from
– cutting off utilities,
– locking out tenant,
– seizing tenant’s possessions,
– or threatening any unlawful
act against tenant
 Violation allows tenant to
recover damages and
attorney fees
Tenant’s Obligations
 Keep premises safe &
sanitary
 Obey applicable safety &
housing rules
 Don’t damage or destroy
premises or fixtures, or
allow others to do so
 Maintain appliances
supplied by landlord
Tenant’s Obligations
 Use electrical &
plumbing properly
 Do not disturb
neighbors, or allow
others to do so
 No controlled
substances
 Allow reasonable
access for inspection
& repairs
Tenant’s Rights
 R.C. 5321.02
 Landlord may NOT increase rent,
decrease services, or start eviction
to retaliate for tenant’s action of:
– Complaining to landlord of a breach of
any R.C. 5321.04 duty
– Depositing rent with clerk
– Complaining to a government agency
of any code violation
– Joining other tenants to bargain
collectively with landlord
Tenant’s
Rights:
Security
Deposits
 R.C. 5321.16
 Security deposit of over one month’s rent kept for
6 months or more carries 5% interest
 Deposit may be applied to any unpaid rent
 Landlord must provide written statement of any
deductions within 30 days
 Tenant must provide forwarding address
Preparing a Residential Lease
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Residential Lease Elements
1. Date the lease is executed
2. Parties to the lease
3. Description of the premises
4. Duration of the lease, & renewal
5. Rent
6. Misc. terms: security deposit,
default, pets, option to purchase,
alterations, subletting, etc.
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Lease Elements
PARTIES: By name or at least
number. Can landlord forbid:
Kids? Seniors? Handicapped?
Sexual predator?
DESCRIPTION: Address,
apartment number, in some
states legal description, parking
places
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Lease Elements
DURATION & RENEWAL: Notice
required? Terms of renewal?
RENT: Total amount, monthly
installments, date & place due, late
fees. Sometimes 1st &/or last month’s
rent payable in advance
DEPOSITS: Security deposit, pet
deposit -- amount, conditions for
return, interest
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Lease Elements
PERSONALTY: If furnished premises
--Should have inspection
before/after
INSURANCE/INDEMNITY:
Landlords may try to limit liability
for property or personal injury
damages to tenant (Illegal in Ohio)
MAINTENANCE/REPAIRS: Spell out
who is responsible for what
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Lease Elements
ALTERATIONS: What may tenant
change? May require written
permission. May restrict tenant
from placing liens. Fixtures
(existing & new) to remain after
lease.
SUBLETTING: Require prior
consent? --Tenant remains liable
until original lease term expires
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Landlord-Tenant Law
Concluded
Thank You
Mike Brigner, J.D.
END OF CLASS:
(EVERY Class) Clean
up classroom; log off
computers; check for
personal property &
computer disks; make
sure you have signed in.
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