Lease Agreements between Landlords and Tenants – Part 5
Lease Agreements – Part 5
In Part 4 of this series related to Lease Agreements we provided some basic discussion regarding what should be and what should not be in lease agreements. In this article we continue our series with a discussion about State-Required Clauses.
Many states require by statute that certain clauses be included in residential leases or in a separate document attached thereto. These can deal with a variety of issues, as states have different ideas about what is important. Some are related to disclosures regarding the rental unit premises, some related to location of the unit, some related to which bank the tenants’ security deposits are in, and yet others to a variety of other matters. In some cases the exact wording and even type size and/or bolding of words are specified.
Some examples of required clauses are as follows:
- California – a “Meagan’s Law” clause is required.
- Florida – a copy of the state’s security deposit law must be attached to the lease agreement.
- Michigan – a “forwarding address” clause (specified in great detail) and the name and address of the financial institution where security deposits are kept must be included.
Obviously, we can’t begin to cover every requirement of the above three example states in this article, let alone discuss requirements of all states. However, in order to give readers an idea of how comprehensive the requirements
can be, we will provide more detail regarding California requirements, California having more requirements than most other states.
This writer understands that the following disclosures must be provided in California, either within the lease agreement itself for some or optionally by an independent document or an addendum to the lease for others. Laws are continually changing, so landlords are advised to regularly research disclosures and other issues related to federal, state, and local laws.
Most issues must, by law, be disclosed to the applicants/tenants prior to executing the lease agreement and most must be disclosed in writing. Even if not required by law, all disclosures should always be made prior to lease signing and be made in writing, preferably with signatures of all adult occupants – which should always be all occupants having legal capacity, i.e., all who are at least the legal age or are legally emancipated minors – so that the landlord can prove having made disclosure.
Lead hazard disclosures as have long been required.
- Prior to commencing lead paint renovations, certain other disclosures may be required– certain types of housing units are exempt.
- Every lease agreement must include a statutorily-defined notice regarding the existence of public access to database information regarding sex offenders.
- If any gas or electric service for which the tenant will be paying for and the lease premises also serves other areas – e.g., common areas or other rental premises. If so, the manner by which costs will be fairly allocated must be
disclosed. - If there are military ordnance locations within one mile of the property, the landlord must disclose in writing that these locations may contain potentially explosive munitions.
- Prior to lease execution, landlord must provide written disclosure when landlord knows or has reason to know that mold exceeds permissible exposure limits or poses a health threat and must provide a consumer handbook developed by the state department of health services that describes the potential health threats from mold.
- Landlord must give each tenant a copy of the notice provided by the registered structural pest control company if a contract for periodic pest control service has been signed.
- If landlord has applied to demolish the unit, landlord must provide written notice of the fact to prospective tenants before accepting any deposits or screening fees.
- For leases signed after January 1, 2012 by someone who has not previously occupied the unit, landlord must provide a lease clause describing the areas where smoking is limited or prohibited.
- For a rental property of 1 to 4 units, prior to signing a lease agreement the landlord must provide disclosure in writing the receipt of a notice of default. This disclosure must be available in a number of languages.
- Contamination related to illegal drugs can require specific disclosures.
- Although only required for businesses that employ 10 or more persons, it is recommended that landlords post a Proposition 65 warning notice on the premises.
Although not disclosures, other issues of importance to CA landlords include the following:
- Smoke detector/alarm requirement – must provide battery operated or hard-wired smoke detectors as required by law (depends mostly on date of construction) in specified locations within the leased premises. City and/or county laws may be more stringent. Beginning in 2013 for multi-family buildings, owner is generally responsible for testing and maintaining smoke alarms, this being required for single-family rental beginning in 2014. Beginning in 2016
landlords must generally install additional smoke alarms as needed to comply with current requirements. - Carbon monoxide detector/alarm requirement – landlord must provide a CO detector in each rental unit that has a fossil fuel burning heater or other appliance, fireplace, or an attached garage.
- Beginning in 2019, plumbing fixtures must operate at manufacturers rated water consumption at the time the tenant takes possession.
- Owners of existing water heaters must brace, anchor, or strap water heaters so as to resist falling or horizontal displacement due to earthquake motion.
- A CA statute also has specific requirements regarding the locks on doors and windows of rental units.
There are other requirements specific to mobile home parks.
The above discussion summarizes California issues of which this writer is currently aware. It may not include all issues of importance to CA landlords and the brief summaries provided may not include everything that a landlord must know in order to comply with federal, state, and local laws. More specifically, the law may require written disclosure even if the above summary does not so state.