Definitions of Key Lease Terms
These terms are helpful for understanding your lease and any legal issues you may run into:
Action: A legal proceeding. A court action, for example, is a court case.
Addendum: Additional information or terms attached to the lease that become part of the lease. An addendum can be signed at the same time as the lease, or later, and adds to or changes the original lease. An addendum typically addresses a single topic, such as mold, fire safety or bed bugs.
Arrears: Overdue payment, such as rent.
'As is': Accepting a property in whatever condition it happens to be in. These are often used when some tenants want to stay, but others are graduating, and the remaining group has specific people they want to bring in. Problems arise when an apartment is passed this way over several years and the last group to occupy the apartment are held liable for damages they did not cause.
Assignment: The transfer of rights of property from one person to another. Most leases in University markets specifically prohibit assignment absent the written consent of the landlord.
Breach: Violation of one or more provisions of a lease contract.
Civil: Legal action that is not criminal. Landlord tenant matters are usually handled in civil court.
Constructive eviction: When a landlord has so interfered with a tenant's right to the leased property that the tenant has no choice but to vacate the property.
Contract: An agreement to do or not do a particular thing. In Pennsylvania, oral or written contracts are both valid for lease agreement. Lease agreements do not have to be fair to be legal. Consider the terms carefully before signing a contract.
Damages: The court's award to the wronged party. Usually a sum of money.
Default: The failure to fulfill a legal obligation. Not paying rent on time is a default of the lease.
Eviction: The legal process for removing a tenant from the leased premises. Landlords must follow the legal process, and are not permitted to resort to self-help remedies, such as locking the tenant out.
Individual lease: A lease with only a single tenant. This can be a single tenant in a single occupancy unit, or a single tenant in a multiple occupancy unit. Under an individual lease, the tenant is only liable for his or her own rent and damages. In a multiple occupancy unit, the lease often still conveys joint and several liability for damages to common areas.
Individual rent liability: Refers to a legal obligation between the tenants whereby each individual tenant is responsible for his or her own rent, and can not be held liable for the default of another tenant on rent obligations. All tenants, however, can be jointly and severally held liable for any other damages or charges that may accrue.
Joint and several: Refers to the legal obligation between tenants. Under joint and several liability, the tenants are all fully responsible for any rent or damages to the unit. The landlord may sue any or all of the tenants to recover damages.
Housing code: The local regulations that set a minimum standard of safety and habitability for leased property. In order to obtain a rental permit, the landlord must pass a housing inspection.
Lessor: The tenant.
Lessee: The landlord or his agent.
Mitigate: Minimizing damages. If a tenant breaks a lease, the landlord or tenant could mitigate damages by finding a replacement tenant.
Premises: The property conveyed in the lease.
Addendum: Additional information or terms attached to the lease that become part of the lease. An addendum can be signed at the same time as the lease, or later, and adds to or changes the original lease. An addendum typically addresses a single topic, such as mold, fire safety or bed bugs.
Arrears: Overdue payment, such as rent.
'As is': Accepting a property in whatever condition it happens to be in. These are often used when some tenants want to stay, but others are graduating, and the remaining group has specific people they want to bring in. Problems arise when an apartment is passed this way over several years and the last group to occupy the apartment are held liable for damages they did not cause.
Assignment: The transfer of rights of property from one person to another. Most leases in University markets specifically prohibit assignment absent the written consent of the landlord.
Breach: Violation of one or more provisions of a lease contract.
Civil: Legal action that is not criminal. Landlord tenant matters are usually handled in civil court.
Constructive eviction: When a landlord has so interfered with a tenant's right to the leased property that the tenant has no choice but to vacate the property.
Contract: An agreement to do or not do a particular thing. In Pennsylvania, oral or written contracts are both valid for lease agreement. Lease agreements do not have to be fair to be legal. Consider the terms carefully before signing a contract.
Damages: The court's award to the wronged party. Usually a sum of money.
Default: The failure to fulfill a legal obligation. Not paying rent on time is a default of the lease.
Eviction: The legal process for removing a tenant from the leased premises. Landlords must follow the legal process, and are not permitted to resort to self-help remedies, such as locking the tenant out.
Individual lease: A lease with only a single tenant. This can be a single tenant in a single occupancy unit, or a single tenant in a multiple occupancy unit. Under an individual lease, the tenant is only liable for his or her own rent and damages. In a multiple occupancy unit, the lease often still conveys joint and several liability for damages to common areas.
Individual rent liability: Refers to a legal obligation between the tenants whereby each individual tenant is responsible for his or her own rent, and can not be held liable for the default of another tenant on rent obligations. All tenants, however, can be jointly and severally held liable for any other damages or charges that may accrue.
Joint and several: Refers to the legal obligation between tenants. Under joint and several liability, the tenants are all fully responsible for any rent or damages to the unit. The landlord may sue any or all of the tenants to recover damages.
Housing code: The local regulations that set a minimum standard of safety and habitability for leased property. In order to obtain a rental permit, the landlord must pass a housing inspection.
Lessor: The tenant.
Lessee: The landlord or his agent.
Mitigate: Minimizing damages. If a tenant breaks a lease, the landlord or tenant could mitigate damages by finding a replacement tenant.
Premises: The property conveyed in the lease.
Quit: To vacate the property.
Security deposit: A sum of money held in escrow by the landlord to secure the tenant's performance of the terms of the lease. In Pennsylvania, at the end of the lease term, the tenant must vacate the premises and provide the landlord with a written forwarding address. The landlord then has 30 days to provide an itemized list of damages and refund of any unused portion of the deposit.
Sublease: A third party enters into a contract with the tenant to rent the property. The original tenant is still liable to the landlord if the sublessor fails to pay rent or damages the apartment.
Security deposit: A sum of money held in escrow by the landlord to secure the tenant's performance of the terms of the lease. In Pennsylvania, at the end of the lease term, the tenant must vacate the premises and provide the landlord with a written forwarding address. The landlord then has 30 days to provide an itemized list of damages and refund of any unused portion of the deposit.
Sublease: A third party enters into a contract with the tenant to rent the property. The original tenant is still liable to the landlord if the sublessor fails to pay rent or damages the apartment.