Rental Agreements for Real Estate in Los Angeles

 

Property rentals require a specific legal groundwork that safeguards the interests of both the landlord and the tenant. This legal groundwork is defined by the commonly referred to as a rental agreement. The rental agreement delineates the terms on which the property is to be leased out- typically, it states the rent to be paid, the other obligations of each of the parties.

 

The rental agreement is the guideline for the tenants and the landlord to understand the basics of their relationship to one another.

 

You should not cobble up your own rental agreement or download one from a dubious internet source.

 

You should spend a few bucks and get a good agreement from a reputable source.

 

Clients of BTRE will have access to all of our internal documents, which have been researched, used for years, and withstood the test of time.

A rental agreement in real estate is a legally binding document which outlines the set conditions and terms for allowing a tenant to inhabit a residential property for a pre-decided duration and at a fixed monthly rent. This document is based on terms mutually agreed upon by both parties: the landlord and the tenant. It typically includes details about the rental property, the amount of the monthly rent, the duration of the rental contract, and the rights and responsibilities of both parties. It will (and should) delineate quite a few details, some, but by no means all, of which are the following.

• Allowance, or not, of pets, and if so, what pets;
• Allowance, or not, of sub-leasing;
• Parking spaces, where they are, where not to park;
• Allowance, or not, of certain activities (like smoking);
• Allowance, or not, of overnightguests, and if so, restrictions on how long they can stay and under what conditions (this is important because if a “guest” stays over 30 days, they may be able to claim tenants' rights and make everyone’s life miserable)
• Who pays for utilities, other household things
• Arbitration provisions

Prevailing party attorneys fees provisions (e.g. does the winner get their attorneys fees paid by the loser, if landlord and tenant end up litigating over the agreement). There are many different opinions on this clause and how to approach it, but typically, the contracts limit attorney fees to a set amount to reduce landlord exposure. The list of what is (and isn’t) in a rental contract is a long one. A reputable source should be contacted. Clients of BTRE will have access to BTRE’s corporate memory, on real estate agreements, including rental agreement.

 

A rental agreement is a contract of rental, usually written, between the owner of a property and a renter who desires to have temporary possession of the property; it is distinguished from a lease, which is more typically for a fixed term. As a minimum, the agreement identifies the parties, the property, the term of the rental, and the amount of rent for the term. The owner of the property may be referred to as the lessor and the renter as the lessee.

There is typically an implied, explicit, or written rental agreement or contract involved to specify the terms of the rental, which are regulated and managed under contract law. Examples include letting out real estate (real property) for the purpose of housing tenure (where the tenant rents a residence to live in), parking space for a vehicle(s), storage space, whole or portions of properties for business, agricultural, institutional, or government use, or other reasons.

Real Estate Rental

When renting real estate, the person(s) or party who lives in or occupies the real estate is often called a tenant, paying rent to the owner of the property, often called a landlord (or landlady). The real estate rental may be all or part of almost any real estate, such as an apartment, house, building, business office(s) or suite, land, farm, or merely an inside or outside space to park a vehicle, or store things all under real estate law.

The tenancy rental agreement for real estate is often called a lease, and usually involves specific property rights in real property, as opposed to chattels. In addition to the basics of a rental (who, what, when, how much), a real estate rental may go into much more detail on these and other issues. The real estate may be rented for housing, parking a vehicle(s), storage, business, agricultural, institutional, or government use, or other reasons.

Who: The parties involved in the contract, the lessor (sometimes called the owner or landlord) and the lessee (sometimes called the renter or tenant) are identified in the contract. A housing lease may specify whether the renter is living alone, with family, children, roommate, visitors. A rental may delineate the rights and obligations of each of these. For example, a “”sub-let”” to a stranger might not be permitted without permission of the landlord. This also applies to whether or not pets may be kept by the renter. On the other hand, the renter may also have specific rights against intrusions by the landlord (or other tenants), except under emergency circumstances. A renter is in possession of the property, and a landlord would be trespassing upon the renter’s rights if entry is made without proper notice and authority (e.g., 24 hours’ notice, daytime, knock first, except for emergency repairs, in case of fire, flood, etc.).

What: Rented real estate may include all or part of almost any real property, such as an apartment, house, building, business office(s) or suite, land, farm, or merely an inside or outside space to park a vehicle, or store things. The premises rented may include not only specific rooms, but also access to other common areas such as off-street parking, basement or attic storage, laundry facility, pool, roof-deck, balconies, etc. The agreement may specify how and when these places may be used, and by whom. There may be detailed description of the current condition of the premises, for comparison with the condition at the time the premises are surrendered. Property may be rented furnished, unfurnished, or partly-furnished. Partly-furnished may mean that major appliances or “”white goods”” are made available but not tables and chairs.

When: the term of the rental may be for a night (e.g., a hotel room), weeks, months, or years. There may be statutory provisions requiring registration of any rental that could extend for more than a specified number of years (e.g., seven) in order to be enforceable against a new landlord.
A typical rental is either annual or month-to-month, and the amount of rent may be different for long-term renters (because of lower turnover costs). Leaving a long-term lease before its expiration could result in penalties, or even the cost of the entire agreed period (if the landlord is unable to find a suitable replacement tenant after diligent pursuit). If a tenant stays beyond the end of a lease for a term of years (one or more), then the parties may agree that the lease will be automatically renewed, or it may simply convert to a tenancy at will (month-to-month) at the pro-rated monthly cost of the previous annual lease. If a tenant at will is given notice to quit the premises, and refuses to do so, the landlord then begins eviction proceedings. In many places it is completely illegal to change locks on doors, or remove personal belongings, let alone forcibly eject a person, without a court order of eviction. There may be strict rules of procedure, and stiff penalties (triple damages, plus attorneys’ fees) for violations.

How much: Rent may be payable monthly, annually, or in advance, or as otherwise agreed. A typical arrangement for tenancy at will is “”first and last month’s rent”” plus a security deposit. The “”last month’s rent”” is rent that has yet to be earned by the landlord. A rental agreement or lease may include a “”rent review”” clause which makes provision for the rental amount to be increased, the process for the landlord to provide notice of a rent increase and the options available to the tenant regarding acceptance or rejection of the proposed increase.

Deposit

Main article: Security deposit

The security deposit is often handled as an escrow deposit, owned by the tenant, but held by the landlord until the premises are surrendered in good condition (ordinary wear and tear excepted). In some states, the landlord must provide the tenant with the name and account number of the bank where the security deposit is held, and pay annual interest to the tenant. Other regulations may require the landlord to submit a list of pre-existing damage to the property, or forfeit the security deposit immediately (because there is no way to determine whether a prior tenant was responsible).

Insurance

In order to rent or lease in many apartment buildings, a renter (also referred to as a “lessee””) is often required to provide proof of renters insurance before signing the rental agreement. There is a special type of the homeowners insurance in the United States specifically for renters — HO-4. This is commonly referred to as renter’s insurance or renter’s coverage. Similar to condominium coverage, referred to as a HO-6 policy, a renter’s insurance policy covers those aspects of the apartment and its contents not specifically covered in the blanket policy written for the complex. This policy can also cover liabilities arising from accidents and intentional injuries for guests as well as passers-by up to 150′ of the domicile. Renter’s policies provide “”named peril”” coverage, meaning the policy states specifically what you are insured against. Common coverage areas are:

• Fire or Lightning
• Windstorm
• Smoke
• Vandalism or Malicious Mischief
• Theft
• Accidental Discharge of Water
• Additional events including riot, aircraft, explosion, smoke, hail, falling objects, volcanic eruption, snow, sleet, and weight of ice may

Information on Los Angeles

The most populated city in the U.S. state of California is Los Angeles, which is frequently abbreviated as L.A. It is the commercial, financial, and cultural hub of Southern California and is the second most populous city in the United States, after New York City, with an estimated 3,820,914 people living inside its limits as of 2023. The main city of a 12.8 million-person metropolitan area, Los Angeles is home to a diverse population in terms of ethnicity and culture (2023). With more than 18.3 million inhabitants, Greater Los Angeles is a vast metropolis that encompasses the Los Angeles and Riverside–San Bernardino metropolitan areas.

With the San Gabriel Valley to the east and the Santa Monica Mountains and the San Fernando Valley to the north, the city proper is mostly located in a basin in Southern California that is adjacent to the Pacific Ocean on the west. It is the county seat of Los Angeles County, the most populated county in the US with an estimated 9.86 million residents as of 2022, and it occupies roughly 469 square miles (1,210 km2). As of 2023, it had over 2.7 million visitors, making it the third most visited city in the United States.

The native Tongva people lived in the region that would become Los Angeles until Juan Rodríguez Cabrillo claimed it for Spain in 1542. Felipe de Neve, a Spanish governor, established the city on the village of Yaanga on September 4, 1781. After the Mexican War of Independence, it joined the First Mexican Empire in 1821. Los Angeles and the remainder of California were acquired as part of the Treaty of Guadalupe Hidalgo in 1848, following the conclusion of the Mexican–American War, and were incorporated into the United States. Five months before California became a state, on April 4, 1850, Los Angeles was incorporated as a municipality. The city grew quickly after oil was discovered in the 1890s. The Los Angeles Aqueduct, which transports water from Eastern California, was completed in 1913, adding to the city’s growth.

The economy of Los Angeles is diverse, encompassing a wide range of industries. Los Angeles is still one of the biggest centers of American film production and the largest in the world by revenue, despite a sharp decline in film and television production since the COVID-19 pandemic. The city is significant in the history of cinema. It also boasts one of the Americas’ busiest ports for containers. With a gross metropolitan product of more than $1.0 trillion in 2018, the Los Angeles metropolitan area ranked third globally in terms of GDP, behind New York and Tokyo. Los Angeles will host the Summer Olympics in 2028 after hosting them in 1932 and 1984. Even though downtown Los Angeles has seen a decline in business since the COVID-19 pandemic, the city’s urban core is developing into a cultural hub that features the largest display of Frank Gehry architecture in the world.

A landlord tenant agreement, is essentially the same as a rental agreement; a legal contract entered between a property owner and individual or business that specifies the terms and conditions of property rental. Whether the rental property is residential, like an apartment or house, or a commercial property, such as an office or warehouse, the agreement serves as a comprehensive guideline for both parties. The contract will stipulate the period of time for which the tenant has the authority to use and occupy the rental property. It typically involves the payment of rent in advance and the requirement to pay rent on time in compliance with the terms stipulated in the contract.

 

This contract also contains an address for official correspondences, as well as provisions regarding legal matters like the code of conduct and landlord’s obligations. For instance, if a rental property built before 1978 is rented out, landlords are legally obligated to disclose the possibility of lead-based paint hazards. The landlord tenant agreement is designed to protect both parties’ rights, with the tenant agreeing to abide by rules related to use of the property, and the landlord agreeing to provide a safe and habitable dwelling.

 

In essence, a property rental agreement is a binding contract established between a property owner and a renter. This legal document defines the duration: long, medium and short-term rental plan related to the rented property and is used to ensure understanding and agreement between both parties over the responsibilities, rights, and restrictions involved. Depending on local laws, different factors could be included in the agreement. For instance, in Rhode Island, a lease agreement should clearly outline the lease period, the amount of rent to be paid, and the date it’s due. These agreements can take many forms, such as month-to-month lease agreements where the contract is renewed on a monthly basis, or longer-term lease agreements set over a specific period.

 

Comprehensive lease templates providing legal advice are available to aid in drafting these vital agreements. A detailed clause specifying recourse in the event of nonpayment of rent such as an unpaid rent clause is also vital to protect the property owner’s rights. Similarly, the inclusion of a lease termination letter clause allows both parties to understand how to appropriately end the agreement when the lease period comes to an end. It’s crucial for both renters and landlords to read and understand all clauses and conditions before signing to avoid misunderstandings or legal issues down the road.

 

A tenancy agreement form, often synonymous with a lease agreement, serves as an official document between the landlord and a tenant. As stated above, tenancy agreements forms may be found from reputable websites and sources, and should not be generated by would-be landlords out of thin air, or cobbled together from random internet sources. Playing fast and loose with a tenancy agreement is a great way to get in some real hot water.

 

Lease agreement terms are essentially the rules and conditions set by the Landlord Tenant that potential tenants must adhere to during the course of their lease. These terms include rent payment timelines, the responsibility for repairs, rules surrounding property modifications, and conditions under which a lease could be terminated. A critical part of these terms involves the landlord’s obligation to disclose known Lead-Based Paint Hazards to prospective tenants. Other significant lease agreement terms relate to whether or not security deposit laws apply.

 

These laws may dictate how much a landlord can charge for a security deposit, when it needs to be returned, and whether the landlord must pay interest on the deposit. Many lease agreement terms also stipulate the nature of reasonable and advance notice from the landlord. For instance, the landlord might be required to provide advance notice before entering the leased premises for inspections or repairs. Understanding these lease terms can help potential tenants accurately evaluate rental properties, ensuring they make an informed decision.

 

Real estate rental agreements have several key clauses exist that are of central importance to both parties involved, the current landlord and the tenant. First off, the mailing address clause denotes the property address for regular mail, often noting whether the tenant has the right to change the mailing address or use a forwarding address. Additionally, the agreement may include a ‘credit check’ clause, allowing the landlord to conduct a credit check on the tenant to ensure they have a history of fulfilling their financial obligations. A clause for ‘Non-Sufficient Funds’ can also be an integral part of the agreement. It establishes the consequences, often a fee, if the tenant’s payment method does not have adequate funds when the rent is due. Another key clause in most rental agreements is the ‘customizable document’ clause.

 

This permits the incorporation of unique or specific terms that might be pertinent to the property, the landlord, or the tenant, ensuring the agreement truly covers all bases. Clauses related to ‘policies’ such as pet policies and smoking policy should also be included within the rental agreement. There are many other standard clauses in such agreements, such as an “integration clause” which states that the rental agreement is the ONLY agreement between the parties (so nobody can come in later and say there were side agreements which change the rental agreement); a “severability clause” (which states that if one provision of the contract is held invalid, that it shall not invalidate other parts). There are many clauses which go into these, and a reputable source should be consulted.