Law pg 11,12,73.qxp_Layout 1 2/17/22 12:47 PM Page 1
It’s the Law
By HOWARD BOOKSTAFF, Hoover Slovacek LLP , HAA General Counsel
NAVIGATING THE NEW LEASE Learning the new lease’s provisions and where they are located will help you understand your rights and responsibilities.
THE MOST IMPORTANT document between you and resident is the lease. The lease explains the rights and responsibilities of each party and can answer many of the questions that arise in the day-to-day operations of an apartment community. In February, the new TAA lease became available. If you use the TAA lease, you will be using the new form whenever you sign new leases. Much of the content from the old lease is incorporated into the new lease. The lease is shorter, six pages rather than eight pages. Some of the content from the old lease has been incorporated into the “Community Policies.” The first page of the lease has “Lease Details,” which outlines many of the amounts the resident will be expected to pay throughout the term. It is important that you know the provisions of the new lease, as you did the old lease. Let's take a look at some of the most important provisions you will be using on a day-to-day basis. Rent (Lease Details, Section C, Paragraph 3) Section C of the Lease Details provides a blank where the “Monthly Base Rent” is filled in. Paragraph three outlines the same provisions as paragraph six of the old lease. The resident must pay rent on or before the first day of each month without demand, there are no exceptions regarding the payment of rent. Not paying rent on or before the first day of each month is a material breach of the lease. Late Fees (Lease Details, Section G, Paragraph 3.3) Section G of the Lease Details provides blanks for you to fill in the amount of the late fees. As in the old lease, the late fees can be identified by a percentage of one month’s monthly base rent or by a dollar amount. Secwww.haaonline.org
tion 3.3 provides that if the resident doesn't pay monthly base rent in full when it's due, the resident will pay the late fee outlined in the Lease Details.
In February, the new TAA lease became available. If you use the TAA lease, you will be using the new form whenever you sign new leases.
Lease Changes (Paragraph 3.6) As with the old lease, the lease allows the owner to increase the rent at the end of the lease term or renewal period. At or after the end of the initial lease term, rent increases will become effective with at least five days plus the number of days’ advance notice contained in the lease. The new lease, which may include increased rent or lease changes, will begin on the date stated in any advance notice the owner provides (without the need for the resident’s signature) unless the resident gives timely written move-out notice. Reletting Charge (Lease Details, Section I, Paragraph 7.1) The amount of the reletting charge is identified in the Lease Details, Section I. As with the previous lease, the reletting charge is not to exceed 85% of the highest monthly rent during the lease term. Additionally, Section I confirms that the reletting charge may be charged in certain default situations. Paragraph 7.1 outlines the same authority to assess the reletting charge as in the previous lease. The resident is liable for a reletting charge if the resident: (A) fails to move or fails to give written move-out notice as required in the lease; (B) moves out without paying rent in full for the entire lease term or renewal period; (C) moves out at the owner’s demand, because of the resident’s default; (D) is judicially evicted. Early Termination Option (Lease Details, Section J, Paragraph 7.2) The new lease incorporates the early ter-
mination option into the lease, rather than by separate addendum. Section J allows you and the resident to agree on the termination fee and the number of days’ notice that would be required for the resident to exercise the option. It is important to note that if the blanks in Section J are not filled in the section does not apply. Paragraph 7.2 outlines the early lease termination procedures. Once again, this section confirms that if the resident is in default, the lease remedies apply. The resident cannot exercise the early termination option if the resident is in default. Community Policies (Paragraph 10) The Community Policies is a separate document that can be used to address any issues not contained in the lease. Paragraph 10 provides that the Community Policies become part of the lease and must be followed. Paragraph 10 also provides that the owner can make changes, including additions, to written community policies and those changes can become effective immediately if the community policies are distributed and applicable to all units in the apartment community and do not change the dollar amounts in the Lease Details. The Community Policies paragraph contains a photo video release, certain provisions regarding the disclosure of information, issues regarding guests that may be violating the lease and causing problems, a requirement that the resident provide notice of convictions and registration and an agreement regarding odors and noise. March 2022
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