Rights Responsibilities & Termination Flashcards
Remember the Arizona Residential Landlord and Tenant Act (ARLTA) from the last level? We’re going to continue to explore ARLTA in greater detail as it pertains to leases.
Purpose of ARLTA
The purpose of the Arizona Residential Landlord and Tenant Act is to clarify the rights and obligations of landlords and tenants and to encourage them to maintain and improve the quality of rental housing in Arizona.
This is important information to commit to memory, Anthony.
To quote the Act itself, ARLTA’s purpose is:
To simplify, clarify, modernize and revise the law governing the rental of dwelling units and the rights and obligations of landlord and tenant
To encourage landlord and tenant to maintain and improve the quality of housing
ARLTA protects tenants by regulating the leasing and management of residential properties. It clarifies vague terms, defines landlord and tenant rights, and puts the kibosh on unfair stuff.
Every lease in this fine state must adhere to ARLTA. A good lease will dictate the rights and responsibilities of both parties and also outline what happens when rights are violated and responsibilities aren’t upheld.
The Arizona Residential Landlord and Tenant Act
There are a few more things you’ll want to commit to memory regarding the Arizona Residential Landlord and Tenant Act.
Protection for Families
The federal Fair Housing Act prohibits discrimination based on a person’s membership in any of the protected classes: race, color, nationality, religion, sex, disability, and familial status. Familial status refers to whether a person (or persons) are raising children under the age of 18 or intend to do so in the future.
ARLTA recognizes the importance of squashing discrimination against families in the residential leasing environment. So, the law specifically prohibits discrimination based on familial status. There are few exceptions to this rule. For example, housing that is specifically for older people may be permitted to exclude tenants with children.
Rules About Leases
You learned about the elements of a valid lease in the last chapter, but let’s review some lease requirements through the lens of ARLTA.
All leases have to adhere to Arizona’s state law. If a lease includes any provisions that go against ARLTA’s rules, the lease will be void and unenforceable.
According to ARLTA, a lease will be prohibited if it does any of the following:
States that the tenant will waive any of the rights or remedies granted to them by ARLTA
States that the tenant will pay the landlord’s attorney’s fees in the event of legal actions. (However, saying that the losing party – whether that’s the landlord or tenant – will pay the prevailing party’s legal fees is okay.)
Places a limit on the landlord’s legal liability or resulting legal fees
Limits the tenant’s right to call for police officers or other emergency assistance, or in some way penalizes the tenant for doing so
These are some nitty-gritty details, but I bet you’re getting the gist, Anthony. Like most contracts, a lease is a negotiable document that can limit or grant rights and responsibilities to its parties. The stipulations above make sure that tenants can’t be penalized or stripped of certain rights, even if a landlord writes it into the lease and gets them to sign it.
If a landlord is up to no good and intentionally uses a lease that breaks ARLTA rules by including any of the prohibited features above, there are repercussions. The tenant may be able to recover actual damages valued up to two months’ rent. As for tenant accountability? Tenants can still be evicted if they are not in compliance with valid provisions in a rental agreement.
Required Info for Tenants
Landlords need to provide all of their tenants with certain info prior to tenancy. Tenants must receive the following:
The contact info (names and addresses) of the property owner and anyone authorized to manage the property. This should be provided in writing. Tenants need this information so they know where to send receipts, notices, and demands.
Written notice that they can access the Arizona Residential Landlord and Tenant Act on the Arizona Department of Housing website
Info about the two items above needs to be kept current and available to re-furnish to tenants upon request. This requirement stands even if there is a change in ownership or management of the rental property.
ARLTA Provisions
Lessors take on many rights and responsibilities when they demise (transfer by lease) property. The specifics of these rights should be outlined in the lease agreement. Let’s see what those rights are for lessors in Arizona.
Landlords also typically reserve the right to:
Set reasonable rental rates
Receive rent on time
Select tenants by using fair and legal standards
Expect tenants to follow property rules
Repossess the property when the lease ends
Take action if a tenant violates any law and/or lease stipulation
Property Access
One of the landlord rights that calls for a more detailed discussion is property access. Lessors or their hired property managers should NOT enter their properties excessively, needlessly, or without adequate notice.
Landlords must give at least two days’ notice prior to entering a tenant’s home if their reason for entry is NOT an emergency. Examples of acceptable reasons for entry include inspections, maintenance, and showing the property to potential new tenants. The landlord may only enter at reasonable times. When a tenant makes a service or maintenance request, they are giving the landlord permission to enter the unit.
Landlords don’t need to provide notice or get permission if there is an emergency causing a health and safety issue. A need to protect the property from damage could also constitute an emergency.
Landlords may also have the right to enter a unit if:
There is a court order
The unit has been abandoned or surrendered
The tenant is failing to keep the unit up to code to the extent that health and safety are materially affected
Collection of Security Deposits
In Arizona, the maximum security deposit amount that a landlord can charge a tenant is one-and-a-half months’ rent. Just be aware that cities and counties can set their own security deposit maximums. One months’ rent is the typical amount.
All fees and deposits (including security deposits) are treated as refundable unless the landlord specifically designates them as nonrefundable. If the landlord intends for a fee to be nonrefundable, they must state that in writing.
Security deposits, along with any prepaid rent, may be used to cover any due rent or necessary repairs the landlord needs to make to the dwelling.
During the tenant’s lease term, the landlord is free to use deposit money in any way that’s dictated in the rental agreement. They just have to make sure they have enough money to reimburse the tenant when they move out. Arizona law does not require security deposits to be held in financial institutions.
Landlord Rights
Lessors have to uphold their end of the bargain and honor the responsibilities due to their tenants. Read on for what landlords are required to do.
Keep the Property Fit for Habitation
I know, Anthony, “fit for habitation” sounds like a low bar. It’s the legal minimum that a landlord is required to do, and it doesn’t matter how low the rent is. The landlord is responsible for making any necessary repairs to protect habitability. The dwelling must also be up to code and structurally safe.
Landlord responsibilities will include preventive maintenance (such as changing air filters), routine maintenance (like landscaping), and corrective work (such as fixing a leaky roof or hot water heater).
Arizona law requires landlords to provide tenants access to:
Running water
Reasonable amounts of hot water
Operable heating, ventilation, and air conditioning (HVAC) systems
Respond to tenant requests within a reasonable time period
Handle tenant funds and property management accounts lawfully
Responsibilities Upon Move-In
Whenever a new tenant moves into a leased property, the landlord must fulfill these specific responsibilities:
Provide the tenant with a signed copy of the lease
Provide the tenant with a move-in form on which the tenant can make note of any existing damages in the unit
Notify the tenant in writing that the tenant has a right to be present for the move-out inspection when the lease term ends (This right is waived if the tenant is evicted for a material and irreparable breach of contract since such a situation could be dangerous for the landlord.)
Bedbug Responsibilities
Landlords need to provide their tenants with educational materials about bedbugs. There is no standardized material required by the law, but whatever the landlord chooses to distribute should cover topics like how to prevent, identify, and control bed bug problems.
If a landlord knows that a unit is affected by bedbugs, they must hold it off the market until the infestation is eradicated.
Note that Arizona statutes regarding bedbugs apply to multi-family rental property, not single-family homes.
Landlord Responsibilities
If a landlord is wronged by their tenant in a leasing relationship, what can they do about it? It depends on the type of issue.
Noncompliance
If a tenant falsified info on their leasing application, the landlord should send a written notice to the tenant to remedy the issue. Of course, some issues are easier to remedy than others. A tenant who lied about their income probably can’t go out and immediately earn more income at the landlord’s request. However, a resident who “forgot” to mention their two dogs can feasibly correct the situation by paying the pet deposit. If the issue is not fixed to the landlord’s satisfaction within 10 days of the tenant receiving the notice, the lease will terminate.
As for other breaches to the lease, remedies depend on the severity of the issue.
For less serious problems: In relatively minor cases of material noncompliance, like having an unauthorized occupant or failing to keep the unit clean, the landlord can give a 10-day notice. Tenants who don’t fix the problem within 10 days can be evicted.
For problems affecting health and safety: This type of breach must be a violation of the tenant’s duty to maintain the premises for health and safety. Since this is a somewhat pressing issue, the landlord only needs to give the tenant a five-day notice before eviction.
For serious, irreparable breaches: A landlord has the right to immediately terminate the lease of a tenant who breaches the contract in a major way. If the tenant has committed a crime or engaged in certain drug activities, or has created an egregious health and safety problem, the landlord can file an eviction right away.
Nonpayment of Rent
The failure to pay rent comes with a shorter timeline for enforcement than some other acts of noncompliance. A landlord can issue a notice regarding late rent as soon as the day after rent was due. The notice will give the tenant five days to pay the rent. After those five days, if the tenant hasn’t paid, the landlord can terminate the rental agreement by filing what’s called a special detainer action.
The landlord can also place a lien on the tenant’s personal property and seize it from the unit as needed to secure the payment of rent. Personal property is fair game as long as it’s not from a category that’s exempted by law (necessities like clothing and equipment that the tenant needs for work, etc.). If the rent is still unpaid 60 days after the landlord seizes the property, the landlord can sell it as provided in ARLTA.
Criminal Activity
As mentioned above, tenants who engage in serious criminal activity aren’t afforded much lenience. The landlord in this situation can give the tenant written notice for immediate termination of the lease. They can then cut off any utilities they supply to the unit on the day following the day that a court has granted the landlord possession of the unit.
The following crimes may be considered serious enough to warrant immediate termination:
Homicide
Illegal discharge of a weapon on the premises
Criminal street gang activity
Unlawful making, selling, transferring, possessing, using, or storing of controlled substances
Threatening or intimidating neighbors
Facilitating prostitution
Breaching the lease in such a way that immediately endangers the landlord and/or other tenants
Landlord Remedies for Breach of Lease
Let’s look at what rights and responsibilities lessees, or tenants, should stay on top of. These rules are also specific to Arizona.
Tenant Rights
Privacy, or quiet enjoyment, of their leased property
Safe and habitable living conditions
Return of unused security deposits
It must be returned within 14 days (not including weekends and legal holidays) of the tenant vacating.
The landlord must include an itemized list of expenses if any portion of the deposit is withheld.
It must be sent via first-class mail to the tenant’s last known address or according to other arrangements made by the parties.
The tenant can dispute any amount withheld within 60 days of the money and itemized list being mailed (otherwise, the matter is considered final).
If the landlord doesn’t comply with security deposit rules, the tenant can recover the amount due to them plus damages equal to twice the amount wrongfully withheld by the landlord.
Tenant Responsibilities
Tenants have to hold up their end of the deal by fulfilling these responsibilities.
Filling Out the Application Truthfully
Lies on a rental application can include things like:
Listing a fake name or social security number
Knowingly claiming a different number of pets or occupants than the tenant intends to have
Misrepresenting employment or income
Failing to disclose a criminal record or past evictions
Falsifying info on a lease application is considered a breach of contract.
Allowing Reasonable Access
As noted above, tenants have a right to the quiet enjoyment of their homes. Still, landlords need occasional access to rental units in order to perform inspections, make repairs and improvements, supply services, and show the property to prospective tenants, buyers, and contractors. Tenants may not unreasonably prevent the landlord from entering for valid purposes.
Paying Rent on Time
The lease should ideally be clear about how much rent costs, when it is due, and where it can be paid. It should be paid on time without the landlord having to give notice or make a demand for it.
In ambiguous situations where rent details aren’t specified in a lease, the law defines some default terms. Unless otherwise specified, the fair rental value of a unit will be its rental rate. And unless otherwise agreed upon, rent is payable at the rented unit and due at the start of any term of one month or less.
Adhering to Property Rules
Tenants have to follow property rules. Rules will likely address basics like keeping the unit clean and disposing of household trash properly. Tenants may also be asked to use electrical, plumbing, and gas fixtures properly. And of course, in multi-family dwellings, property rules can prohibit tenants from disturbing or threatening the health or safety of their neighbors.
Tenants must follow property rules as long as those rules:
Promote safety or convenience for the tenants
Are applied fairly to all tenants
Allocate facilities and services fairly to all tenants
Are clearly stated
Are communicated to tenants before they sign the lease (or, if it’s a new or amended rule, is communicated with 30 days’ notice)
Protect the landlord’s property
Don’t limit or eliminate the landlord’s legal obligations
Don’t fundamentally change the lease terms
Tenant Rights and Responsibilities
Additional Tenant Responsibilities
But wait, there’s more!
Tenants take on these responsibilities as well.
Limiting Property Damage
It’s the tenant’s responsibility to not cause any damage to the home beyond normal wear and tear. Minor damage like a few nail holes in the walls or small scuffs on the flooring would be normal wear and tear. Anything more serious could be considered damage, and the tenant would be held financially responsible for repairs. The same goes for any items in the unit that are improperly removed.
Preventing Bedbug Infestation
A tenant may not move in with materials known to contain bedbugs. If the tenant detects a bedbug problem in their unit at any point, it’s their responsibility to inform the landlord.
Using Property Only for Its Designated Purpose
A leased residential unit should only be used for residential purposes. A lease may even get more specific and request the areas within the unit only be used for their intended purpose, such as sleeping, cooking, dining, bathing, etc.
Giving Proper Notice Before Moving Out
In most cases, the tenant must give proper notice to the landlord before they move out. Tenants should review their leases carefully and understand how lease termination notice must be given and when.
Returning Property Keys
At the end of the lease term, the tenant is responsible for turning in the keys to their rental unit.
Let’s look at what rights and responsibilities lessees, or tenants, should stay on top of. These rules are also specific to Arizona.
Tenant Rights
Privacy, or quiet enjoyment, of their leased property
Safe and habitable living conditions
Return of unused security deposits
It must be returned within 14 days (not including weekends and legal holidays) of the tenant vacating.
The landlord must include an itemized list of expenses if any portion of the deposit is withheld.
It must be sent via first-class mail to the tenant’s last known address or according to other arrangements made by the parties.
The tenant can dispute any amount withheld within 60 days of the money and itemized list being mailed (otherwise, the matter is considered final).
If the landlord doesn’t comply with security deposit rules, the tenant can recover the amount due to them plus damages equal to twice the amount wrongfully withheld by the landlord.
Tenant Responsibilities
Tenants have to hold up their end of the deal by fulfilling these responsibilities.
Filling Out the Application Truthfully
Lies on a rental application can include things like:
Listing a fake name or social security number
Knowingly claiming a different number of pets or occupants than the tenant intends to have
Misrepresenting employment or income
Failing to disclose a criminal record or past evictions
Falsifying info on a lease application is considered a breach of contract.
Allowing Reasonable Access
As noted above, tenants have a right to the quiet enjoyment of their homes. Still, landlords need occasional access to rental units in order to perform inspections, make repairs and improvements, supply services, and show the property to prospective tenants, buyers, and contractors. Tenants may not unreasonably prevent the landlord from entering for valid purposes.
Paying Rent on Time
The lease should ideally be clear about how much rent costs, when it is due, and where it can be paid. It should be paid on time without the landlord having to give notice or make a demand for it.
In ambiguous situations where rent details aren’t specified in a lease, the law defines some default terms. Unless otherwise specified, the fair rental value of a unit will be its rental rate. And unless otherwise agreed upon, rent is payable at the rented unit and due at the start of any term of one month or less.
Adhering to Property Rules
Tenants have to follow property rules. Rules will likely address basics like keeping the unit clean and disposing of household trash properly. Tenants may also be asked to use electrical, plumbing, and gas fixtures properly. And of course, in multi-family dwellings, property rules can prohibit tenants from disturbing or threatening the health or safety of their neighbors.
Tenants must follow property rules as long as those rules:
Promote safety or convenience for the tenants
Are applied fairly to all tenants
Allocate facilities and services fairly to all tenants
Are clearly stated
Are communicated to tenants before they sign the lease (or, if it’s a new or amended rule, is communicated with 30 days’ notice)
Protect the landlord’s property
Don’t limit or eliminate
But wait, there’s more!
Tenants take on these responsibilities as well.
Limiting Property Damage
It’s the tenant’s responsibility to not cause any damage to the home beyond normal wear and tear. Minor damage like a few nail holes in the walls or small scuffs on the flooring would be normal wear and tear. Anything more serious could be considered damage, and the tenant would be held financially responsible for repairs. The same goes for any items in the unit that are improperly removed.
Preventing Bedbug Infestation
A tenant may not move in with materials known to contain bedbugs. If the tenant detects a bedbug problem in their unit at any point, it’s their responsibility to inform the landlord.
Using Property Only for Its Designated Purpose
A leased residential unit should only be used for residential purposes. A lease may even get more specific and request the areas within the unit only be used for their intended purpose, such as sleeping, cooking, dining, bathing, etc.
Giving Proper Notice Before Moving Out
In most cases, the tenant must give proper notice to the landlord before they move out. Tenants should review their leases carefully and understand how lease termination notice must be given and when.
Returning Property Keys
At the end of the lease term, the tenant is responsible for turning in the keys to their rental unit.
Additional Tenant Responsibilities
An eviction is the forced removal of a tenant due to a default under the terms of the lease. URLTA specified the procedure requirements for eviction, and rightfully so! It’s a big deal to kick someone out of their home. URLTA ensures all parties are protected and treated fairly, even in cases of eviction.
The specific terms for eviction should be outlined in the lease in order to protect the lessor or lessee if an eviction does occur.
There are three main types of evictions:
Actual eviction
Constructive eviction
Self-help eviction
Actual Eviction
If a tenant defaults and breaks their lease, does something illegal, refuses to pay rent, or violates the rules of the property, a lessor will have to go through an actual eviction. Actual eviction is the legal process by which someone (a tenant) is expelled from a property and prevented from re-entry. To pursue actual eviction, a lessor will have to file a suit for possession.
Constructive Eviction
Constructive eviction is the termination of a lease in circumstances in which the landlord defaults and acts or fails to act in such a way that the premises become unusable, whether by preventing quiet enjoyment or failure to make required repairs.
In these cases, the tenant must move out to claim constructive eviction. They have no liability toward further rent payments if constructive eviction is granted.
Self-Help Eviction
Self-help evictions, also called lock-outs, are when landlords take matters into their own hands during an eviction process. This could include a landlord making the environment inhospitable or inaccessible, or directly threatening tenants to make them leave. This is illegal in Arizona.
Ejectment
Ejectment is not a type of eviction, but rather the equivalent of eviction for non-tenants. If there is no rental agreement in the first place, a landlord can’t evict an occupant, but they can remove them from the property via ejectment.
Evictions
Outside of evictions, there are other ways a lease may terminate, all of which will be outlined in the lease agreement.
Expiration
Just like that milk in your fridge, many leases will reach an expiry date (such as with an estate for years). The lease expires naturally when the lease’s term is up.
Performance
A lease may also terminate if all of the parties involved have fulfilled their obligations or duties as outlined in the lease.
Let’s use a month-to-month lease for an example. If, at the end of the month, a tenant has paid their rent and the landlord has provided a habitable place to live but now requires the tenant to move out, this would be considered a lease terminated based on performance. Both parties have performed and fulfilled their duties.
Agreement
All of the parties to a lease can agree to terminate the lease early for a number of reasons. If all the parties are in agreement, the ayes have it!
Destruction
If a property is significantly destroyed by a fire or other disaster, a lease may be terminated.
Death
I know this may seem a bit morbid, but a tenancy at will terminates if either party to the lease dies.
With other types of estates, however, a lessor’s death doesn’t necessarily mean a tenant will have to pick up and move right away. An estate for years and periodic estate typically continue even in the case of a landlord’s death.
Lease Termination
If one of the parties of a periodic leasehold gives sufficient notice that they wish to terminate a lease, the lease may be terminated. The “sufficient notice” will vary, depending on the specific lease.
Termination Options for Certain Tenants
There are a few cases in which a lease termination is more common, and even acceptable.
Military Personnel
Federal law gives active-duty military personnel the right to terminate their leases early if they are entering active duty for at least 90 days. They just have to give written notice to the landlord.
People Affected by Domestic Violence
People experiencing domestic violence typically have the right to terminate a lease, as well. It’s never preferable for a tenant to remain in a situation that is unsafe.
A person in this situation can request to terminate their lease early. Within 30 days of the event, the tenant must give the landlord written notice and either a copy of the protective order or a written report from a law enforcement agency.
The tenant won’t be held responsible for any further rent charges, early termination fees, or other penalties. The person named as the assailant in the report, however, could be held liable by the landlord for financial losses due to the early lease termination. The landlord has the right to ask for the assailant’s name and address if the victim knows this information.
Some tenants who have experienced domestic violence choose to stay in their homes, albeit with extra safety precautions. Upon request, the landlord has to re-key or replace all exterior locks on the rental unit after the offending party leaves the property/moves out. The tenant will be responsible for this expense, and the landlord will be entitled to a copy of the new key.
The landlord must deny the assailant access to the property unless that person is accompanied by law enforcement for the purpose of removing their possessions from the home.
Law Enforcement Officers Experiencing Harassment
If a law enforcement officer has experienced harassment in such a way that their living arrangements become unsafe, Arizona law gives them the right to terminate a lease early.
Termination with Notice
If a rental property gets foreclosed on, it would be an undue burden for the tenant(s) to be immediately evicted by the new owners. This is prevented by the Protecting Tenants at Foreclosure Act of 2009. This national law expired but was later restored in 2018. It protects tenants of foreclosed property, including those who receive Section 8 housing vouchers from the Department of Housing and Urban Development (HUD).
Here are the basic provisions of the Protecting Tenants at Foreclosure Act:
The law gives tenants more time to find new housing if the home they rent is affected by foreclosure.
The new owner of the property must give tenants 90 days’ notice before evicting them.
Tenants must be allowed to finish out their leases except in cases where the new owner intends to reside in the property. (In such cases, the 90-day notice is sufficient.)
Foreclosure Protection in Arizona
In addition to the national law, Arizona law protects tenants living in foreclosed property.
The Arizona Residential Landlord and Tenant Act (ARLTA) states that:
Tenants must be given notice if they are entering into a rental agreement to rent a property where a foreclosure has already been initiated. (Yep, I’d say that’s relevant to the tenant’s interests!)
A landlord who gets a foreclosure notice for their property is required to disclose this to tenants within five business days. The tenant has a right to terminate their lease if the landlord fails to properly disclose this info.
Local laws might provide even more protection in these situations, so look into these rules for your specific area.
Other Changes in Ownership and Management
I also want to briefly cover what happens in the regular, non-foreclosure sale of a rental property.
Once a landlord sells their property, they are released from the rental agreement(s) with their tenant(s). The landlord has to give a written notice of the sale to any and all tenants.
Likewise, a property manager is no longer liable under a rental agreement after they have given notice of terminating their job as the property manager.
Termination by Foreclosure
Even though there are a lot of ways a lease can terminate early, lease termination should not be taken lightly. Leases are legally binding contracts.
Lease terminations should be avoided. If they can’t be, lessees should speak with their landlords right away to see what the requirements are for ending the lease.
Let’s Recap
That’s a lot of ways a lease can terminate! I might have to start calling you “Terminator” instead of Anthony, Anthony. Let’s review:
A chart illustrates the different ways a lease can be terminated.
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To Terminate, or Not To Terminate
