Long term rental laws

Houses are the most common property involved in Long-term rentals. A lot of homes are offered to tenants on long-term rentals. This is why it is important to pay attention to the legal requirements of long-term rentals across different states. For instance, Spain recently had a significant modification in her long-term rental laws. The highlight of the modification was in the minimum contract duration of long-term rentals. The new laws allowed tenants the right to occupy a property for as long as seven years, in instances where the house is owned by a company and seven years in instances where the house is owned by a company and five years when the house is owned by an individual. There were also changes in the permissible amount required as deposit by owners. 

Tenancy Laws 

Tenancy Laws generally regulate long term rentals around the world. And as earlier mentioned, they vary from country to country. 

In England and Wales, tenants don’t have a right to tenancy agreements, although, in the instance where the landlord is a local authority or a housing association, you are most likely to get a tenancy agreement. On the other hand, a landlord must provide a tenancy agreement in Scotland. 

Generally, a tenancy agreement should contain; 

· Names of tenants; including first and last name of tenants. 

· Duration and terms of the lease.

· Payment Plans.

· Fees, Fines, and other charges. 

In some instances, a tenancy agreement might also include conditions for buying out the property. Laws on tenancy and other rentals often regulate one or more of these areas.  

Rents, in the US, are more freely negotiated by the owner and tenant with the state not being involved. These laws that control rent are referred to as maximum rent regulations and are contained in the local laws of some states. For instance, in San Francisco, rent is regulated by the San Francisco Board. Regulations state that the limit of rent increase in the region is 7% annually. 

In New Jersey, the local governments are responsible for the regulation of rental laws. They are responsible for imposing maximum rent increases in the region. The maximum annual increase that is allowable per annum is 4%. 

 In the state of New York, rent control only applied to properties constructed before February 1947. Apartments with monthly rents that are less than $2000 are subjected to rent stabilization. Although apartment from rent, a landlord may also apply for Comparative Hardship which can allow them to increase rent by as much as 6% per annum. Rent control, however, seems to be on the rise in New York. This is due to the advocacy of a number of tenant bodies in the region. Samuel Stein, author of the book, “Capital City: Gentrification and the Real Estate” commented about this development. In his words,

While rent control may not be a socialist housing program in and of itself, it is certainly a crucial element of an anticapitalist urban agenda, as it cools the speculative housing market, and provides the stability tenants need to organize and take collective action.

With regards to the required deposit, 24 of the 51 states in the US don’t have limits on security deposits in rentals. The other states place required to deposit between one to three months. Although, the law demands that the security deposit be refunded when the tenant leaves. Any charges for damages can be removed from this charge as long as the damages are well itemized. 

There are two main tenancy agreements, a lease and a rental agreement. Unless otherwise stated in the contract, the tenant must leave the rental unit after the expiration of the contract or after the specified notice is given. No justification is needed for refusing to renew the contract.

Unlike in some short-term rentals, a long term rental in the US comes with a written lease that allows the tenant the right to occupy the property for a fixed term (six months or longer). Once a lease has been issued, only a mutual agreement between the landlord and tenant can allow for the modification of the terms of the tenancy. 

Another important aspect of Long-Term Rentals is the eviction procedure. This also varies from state to state. There are regulations on how termination notices and eviction papers should be prepared and issued. In England and Wales, either Section 21 and Section 8 notices are to be used in eviction. Section 8 when the tenant breaks the terms of the tenancy and Section 21 when the fixed term of the lease comes to an end. 

In the US, a landlord can evict a tenant using a

Pay Rent or Quit notice

when the tenant has not paid agreed rent on the lease;

Cure or Quit notice

and an

unconditional quit notice.

An unconditional quit notice does give the tenant a chance to pay rent or correct any rental terms violation as the case may be. 

You never know when you might need to work out a long-term rental. This is what makes understanding the legal implications of these transactions important. Before making any long-term rental, ensure to fully understand the terms of the contract before signing. This way you can legally protect yourself in case of any unwanted occurrences in the future. 

References

https://www.gov.uk/evicting-tenants

https://www.thehouseshop.com/property-blog/...tenancy-agreement-include/

https://www.yourinvestmentpropertymag.com.au/property-management/...-legally-191494.aspx

http://www.landlord.com/rent_control_laws_by_state.html

https://www.globalpropertyguide.com/.../Landlord-and-Tenant

https://www.rentecdirect.com/blog/...laws-to-remember/

https://www.jacobinmag.com/2019/06/...rent-control