Definitions of Key Lease Terms

Common Lease Terms & Definitions

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 their 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 their 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 liability

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/renter.

Lessee

The landlord (or their agent/property manager).

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

Also called a “sublet,” this is when a third party enters into a contract with the original tenant to rent the property. The original tenant remains liable to the landlord if the subtenant fails to pay rent or causes damage to the apartment.