Property Management Webinar Series Lease Termination

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Property Management Webinar SeriesLease
Termination Special Statutory RightsInstructed
byKinski Leuffer, Associate CounselMay 18,
2011
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• How can a lease terminate?
• by agreement by both parties
• when the lease ends
• by one of the parties breaching the lease
• according to law

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I. By Agreement

• A landlord and tenant may agree to terminate the
  lease at any time.
• Recommended If both parties agree to terminate
  the lease, be sure to reduce it to writing and
  have both parties sign the agreement.

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II. The Lease Ends

• The lease ends either by
• End of the Express Lease Term
• Month-to-Month Termination

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II. The Lease Ends

• End of the Express Lease Term
• A provision in the lease expressly provides for
  the lease term.
• Expiration Date P. 3A of the TAR Residential
  Lease (TAR-2001).
• After the expiration date, the lease will
  continue on a month-to-month basis, unless one of
  the parties provides the other party with notice.
  
• TARs Residential Lease (TAR-2001) automatically
  renews on a month-to-month unless the landlord or
  the tenant provides written notice to the other.
  P. 4A.

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II. The Lease Ends

• If the lease is about to expire, the party
  wishing to terminate the lease on the expiration
  date, must give notice as required by the lease.

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II. The Lease Ends

• What is the required notice under the TAR Lease?
• The lease gives 2 options
• 30 days before the Expiration Date or
• _____ days before the Expiration Date.

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II. The Lease Ends

• Note Oral notice is not sufficient under any
  circumstances. P. 4C.
• The lease will continue until either the landlord
  or the tenant provides written notice to the
  other party.

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II. The Lease Ends

• Best Practice If you do not intend to renew, be
  sure to provide TARs Notice of Landlords Intent
  Not to Renew (TAR-2217) within the required time
  frame.

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II. The Lease Ends

• Month-to-Month Termination
• Remember After the lease term expires, the lease
  usually continues on a month-to-month unless
  either party provides the required notice.

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II. The Lease Ends

• How do you terminate a month-to-month when the
  lease is silent?
• A month-to-month may be terminated by the tenant
  or the landlord by giving notice to the other.
  TPC 91.001.

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II. The Lease Ends

• What is the required notice if the lease is
  silent?
• Either the landlord or the tenant may terminate a
  month-to-month by giving the other party 30 days
  advance notice.
• TPC 91.001.

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II. The Lease Ends

• When is the termination date?
• If the rent-paying period is at least one month,
  the tenancy terminates on whichever is the later
  of
• the day given in the notice for termination or
• one month after the day on which the notice is
  given.
• If the rent-paying period is less than a month,
  the tenancy terminates on whichever is the later
  of
• the day given in the notice for termination or
• the day following the expiration of the period
  beginning on the day on which notice is given and
  extending for a number of days equal to the
  number of days in the rent-paying period.
• TPC 91.001(b)-(c).

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II. The Lease Ends

• These provisions do not apply if
• the written lease states otherwise or
• the tenant has breached the lease.
• TPC 91.001(e).

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II. The Lease Ends

• What if the lease contains a notice provision?
• TARs Residential Lease (TAR-2001) provides a
  notice provision in Paragraph 4.

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II. The Lease Ends

• If the TAR Lease continues on month-to-month
  basis, how long will it continue?
• Until either party provides the required written
  notice to the other party. P. 4B.
• If written notice is given, when is the notice of
  termination effective?
• The lease gives 2 options
• on the last day of the month following the month
  in which the notice is given or
• on the date designated in the notice but not
  sooner than 30 days after the notice is given,
  and if necessary, rent will be prorated on a
  daily basis.

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III. Breach

• What happens if a tenant violates a provision of
  the lease?
• The landlord may be able to terminate the lease.
  
• Possible grounds for termination
• failure to pay rent
• severely disturbing neighbors
• committing crimes on the property

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III. Breach

• Consequences for breach or early termination by a
  tenant
• The tenant will be liable for
• remaining rental payments under the lease and
• damages to the property.

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III. Breach

• Under the TAR Lease, is there a right to
  terminate the lease prior to the termination
  date?
• No unless otherwise agreed or there is a special
  statutory right.

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III. Breach

• What happens if a party terminates early in
  violation of the lease?
• If the landlord fails to comply with the lease,
  the tenant may seek any relief provided by law.
  P. 27A.
• Landlord will be liable to the tenant for damages
  resulting from the failure to comply with the
  lease. TPC 91.004(a).
• If the tenant fails to timely pay all amounts due
  under the lease or fails to comply with the
  lease, the tenant will be in default. P. 27B.

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III. Breach

• Does a tenant have a right to sublease?
• No, there is no right to sublease unless the
  landlord gives permission. TPC 91.005 P.
  28B.
• Remember The landlord has a duty to mitigate
  damages. TPC 91.006 P. 27D.

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IV. According to Law

• Tenants may special statutory rights to terminate
  a lease early in certain situations involving
• Family Violence
• Sex Offenses
• Military Deployment or Transfer

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IV. According to Law

• Family Violence
• How is family violence defined?
• Family Violence An act or threatened act by a
  member of a family or household against another
  member of the family or household intended to
  result in physical bodily harm or sexual assault.
  
• TPC 92.016(a)(2).

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IV. According to Law

• Family Violence
• What is the statutory right?
• A tenant may terminate a lease early and avoid
  liability for future rent and any other sums due
  if the tenant is a victim of family violence.
• TPC 92.016(b).

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IV. According to Law

• Family Violence
• May the tenant avoid liability for delinquent,
  unpaid rent or other sums owed to the landlord
  before the lease was terminated?
• Yes, unless the lease contain language
  substantially equivalent to the following
• Tenants may have special statutory rights to
  terminate the lease early in certain situations
  involving family violence or a military
  deployment or transfer.
• TPC 92.016(f).

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IV. According to Law

• What are the requirements for a tenant to
  terminate a lease early for family violence
  committed by a cotenant or occupant?
• The tenant must obtain the following
• a temporary injunction or
• a protective order.
• After the tenant obtains one of the above, the
  tenant must
• provide a copy of the court document to the
  landlord and
• vacate the premises.
• TPC 92.016(c-1).

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IV. According to Law

• Does the tenant still have a right to terminate
  if the violence is committed by someone other
  than a cotenant or occupant?
• Yes.

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IV. According to Law

• If the violence is committed by someone other
  than a cotenant or occupant, what are the
  requirements?
• The tenant must obtain the following
• a temporary injunction,
• a protective order, or
• a temporary ex parte order.
• After the tenant obtains one of the above, the
  tenant must
• provide a copy of the court document to the
  landlord,
• provide written notice of lease termination to
  the landlord on or before the 30th day before the
  lease term expires, and
• vacate the premises on the 30th day after the
  notice to vacate was delivered to the landlord.
• TPC 92.016(b) and (c).

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IV. According to Law

• Do other parties to the lease remain liable under
  the lease?
• Yes.
• If a cotenant committed the violence, does the
  cotenant remain liable under the lease?
• Yes.

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IV. According to Law

• May a tenant waive his right to terminate the
  lease under the family violence statute?
• No, a tenants right to terminate a lease before
  the end of the lease term, vacate the dwelling,
  and avoid liability may not be waived by a
  tenant. TPC 92.016(g).

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IV. According to Law

• What is the landlords liability for violation of
  the statute?
• A landlord in violation of the statute is liable
  to the tenant for
• actual damages,
• a civil penalty equal to 1 months rent plus
  500, and
• attorneys fees.
• TPC 92.016(e).

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IV. According to Law

• Sex Offenses
• A tenant may terminate a lease early and avoid
  liability for future rent and any other sums due
  if the tenant or the tenants family member is a
  victim of a sexual offense.
• The offense must have taken place within the past
  6 months on the premises or at any dwelling on
  the premises.
• TPC 92.0161(b).

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IV. According to Law

• May the tenant avoid liability for delinquent,
  unpaid rent or other sums owed to the landlord
  before the lease was terminated?
• Yes, unless the lease contains language
  substantially equivalent to the following
• Tenants may have special statutory rights to
  terminate the lease early in certain situations
  involving sexual assault or sexual abuse.
• TPC 92.0161(g).

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IV. According to Law

• What are the requirements for a tenant to
  terminate a lease early if a sex offense has
  been committed?

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IV. According to Law

• The tenant must provide to the landlord a copy of
  the following
• documentation of the assault or abuse from a
  licensed health care services provider who
  examined or evaluated the victim,
• documentation of the assault or abuse from a
  licensed mental health services provider who
  examined or evaluated the victim,
• documentation of the assault or abuse of the
  victim from an authorized individual, who
  provided services to the victim, or
• a protective order. TPC 92.0161(c).
• The tenant must also
• provide written notice of termination to the
  landlord on or before the 30th day before the
  date the lease terminates and
• vacate the dwelling on the 30th day after
  delivering the notice to vacate to the landlord.
  TPC 92.0161(d).

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IV. According to Law

• May a tenant waive his right to terminate the
  lease under the sex offense statute?
• No, a tenants right to terminate a lease before
  the end of the lease term, vacate the dwelling,
  and avoid liability may not be waived by a
  tenant. TPC 92.0161(h).
• A landlord in violation of the statute is liable
  to the tenant for
• actual damages,
• a civil penalty equal to 1 months rent plus
  500, and
• attorneys fees. TPC 92.0161(f).

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IV. According to Law

• Servicemembers
• A tenant who is a servicemember or a dependent of
  a servicemember may terminate a lease early and
  avoid liability for future rent and any other
  sums due under the lease.
• TPC 92.017(b).

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IV. According to Law

• What is required for a servicemember or dependent
  to terminate a lease?
• One of the following events must occur
• the lease was executed by or on behalf of a
  person who subsequently enters military service
  before the lease terminates or
• a servicemember, while in military service,
  executes a lease and later receives military
  orders
• for a permanent change of station or
• to deploy with a military unit for a period of 90
  days or more.
• TPC 92.017(b).

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IV. According to Law

• What are the requirements?
• The tenant must deliver to the landlord
• a written notice of the termination of the lease
  and
• a copy of an appropriate government document
  evidencing the tenants entry into military
  service or a copy of the tenants military orders
  for a permanent change or deployment.
• TPC 92.017(c).

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IV. According to Law

• When is termination effective?
• If the lease provides for monthly payment of
  rent, the effective date for termination occurs
  30 days after the first date of the next rent
  payment.
• If the lease does not provide for monthly
  payments, the effective date for termination is
  the last day of the month in which the notice of
  termination is given.
• TPC 92.017(d).

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IV. According to Law

• May the tenant avoid liability for delinquent,
  unpaid rent or other sums owed to the landlord
  before the lease was terminated?
• Yes, unless the lease contain language
  substantially equivalent to the following
• Tenants may have special statutory rights to
  terminate the lease early in certain situations
  involving family violence or a military
  deployment or transfer.
• TPC 92.017(g).

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IV. According to Law

• May a tenant to waive his right to terminate the
  lease?
• Yes, a tenant and landlord may agree to waive the
  tenants rights if the tenant or any dependent
  living with the tenant moves into
• base housing or
• other housing within 30 miles of the dwelling.
• Note The waiver must be signed and in writing in
  a document separate from the lease.
• The waiver does not apply if
• the tenant or the dependent moves into housing
  owned or occupied by family or relatives of the
  tenant or dependent or
• the tenant and the dependent move, wholly or
  partly, because of a significant financial loss
  of income caused by the tenant's military
  service.
• TPC 92.0161(j).

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IV. According to Law

• A landlord in violation is liable to the tenant
  for
• actual damages,
• a civil penalty equal to 1 months rent plus
  500, and
• attorneys fees.
• TPC 92.017(h).

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Other

• Emergencies
• A landlord may not
• prohibit or limit a tenants right to summon
  police or other emergency assistance in response
  to family violence or
• impose monetary or other penalties on a tenant
  who summons police or emergency assistance in
  response to family violence.
• A landlord who violates this right is liable
  for
• a civil penalty in an amount equal to 1 months
  rent,
• actual damages suffered by the tenant as a
  result,
• court costs,
• injunctive relief, and
• reasonable attorneys fees.
• TPC 91.015.

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Other

• Public Indecency
• Can the landlord terminate a lease if the tenant
  is convicted of a crime?
• Yes, if the tenant or occupant uses the property
  in a way that leads to a conviction for violating
  Chapter 43 of the Texas Penal Code (public
  indecency).
• TPC 91.003.

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TAR Forms

• The following TAR Forms are available for member
  use only
• Residential Lease (TAR-2001)
• Notice of Landlord's Intent Not to Renew
  (TAR-2217)
• Notice of Tenants Intent to Vacate (TAR-2218)

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Common Questions Answers

• Q1 True or False.
• A landlord has a duty to mitigate damages by
  reletting the premises if the tenant breaches the
  lease by moving out early without legal cause.

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Common Questions Answers

• Q1 Answer
• True. Since 1997, landlords have been required to
  mitigate rent in residential leases by trying to
  relet the vacated premises.

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Common Questions Answers

• Q2 True or False.
• The landlord must have a reason for not renewing
  a lease.

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Common Questions Answers

• Q2 Answer
• False. Either the landlord or tenant may
  terminate a lease at the end of the term without
  any reason, except in low-income housing tax
  credit properties. The landlord may not refuse to
  renew a lease in retaliation or for reasons
  grounded in illegal discrimination.

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Common Questions Answers

• Q3 True or False.
• If a tenant breaks a lease, the tenant will only
  lose the security deposit.

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Common Questions Answers

• Q3 Answer
• False. Unless the landlord agrees otherwise in
  writing, the tenant will be liable for any
  damages incurred by the landlord because of the
  tenants breach and for all the monthly payments
  during the term of the lease as long as the
  property is not re-rented.

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Common Questions Answers

• Q4
• Three roommates signed a TAR Residential Lease
  for 12 months. One of the roommates does not get
  along with the other two, so he offers to move
  out. If he cant find someone to replace him,
  what penalties will the remaining roommates incur?

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Common Questions Answers

• Q4 Answer
• The roommates will need the landlords permission
  to terminate the lease early or obtain a
  replacement under paragraph 28. Unless the
  landlord agrees in writing to any changes, all 3
  of the roommates will remain liable under the
  lease.

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Common Questions Answers

• Q5 True or False.
• A landlord wishing to move back into their
  property has a right to break the lease at any
  time before it expires.

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Common Questions Answers

• Q5
• False. Since the lease is a legally binding
  contract, a landlord cannot force a tenant to
  vacate the premises prior to the end of the
  lease.

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Common Questions Answers

• Q6 True or False.
• There are 3 roommates. One of the roommates is
  sexually assaulted while in the apartment. All
  the tenants have the right to immediately
  terminate their leases without future liability
  for the balance of the lease term.

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Common Questions Answers

• Q6 Answer
• False. The right of termination exists for the
  tenant that was assaulted, but it is unclear as
  to the other tenants who were not assaulted.
  However, to terminate the lease, the attack has
  to be documented by a health-care provider (among
  others). Thereafter, the tenant who was assaulted
  (and possibly the other tenants) may then
  terminate the lease and avoid liability beginning
  on the date after the tenant
• provides a copy of the document substantiating
  the attack to the landlord,
• provides written notice of termination of the
  lease to the landlord on or before 30 days before
  the lease terminates and
• vacates the premises on the 30th day after
  delivering the notice to vacate to the landlord.
• There is no right to terminate the lease
  immediately in this instance.

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Common Questions Answers

• Q7 True or False.
• Same facts as Q6. Rather than telling anyone,
  the roommates keep the assault a secret for seven
  months. When the parent of the victim finds out,
  the parent attempts to terminate the lease on
  their daughters' behalf. The parent has the right
  do so under these circumstances.

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Common Questions Answers

• Q7 Answer.
• False. The tenants' ability to terminate the
  lease for sexual assault requires the assault to
  occur within the prior six months. Thus, the
  right to terminate the lease expired.

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Thank you

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  Webinar!
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