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Anything can happen during the lease term, but the last thing tenants want to experience is their landlord breaking the lease before the expiration date. There can be various reasons landlords want to break a lease — either due to lease violations or personal reasons — but this often requires landlords to follow certain steps to avoid violating a tenant’s rights or landing in a legal situation.
We outlined what landlords and tenants need to know about breaking a lease early and what landlords must do to do this with minimal hiccups.
Breaking a Lease Early: What Landlords and Tenants Should Know
Landlords and tenants are legally bound to the rules and clauses outlined in the lease agreements once both parties have signed. For landlords to break a lease, they must have a valid reason according to local landlord-tenant laws or have a termination clause in the lease that allows them to break the lease under certain circumstances.
They are generally only allowed to break the lease by providing tenants with the proper notice and with a locally-allowed reason. If there is no termination clause in the lease, but the landlord still wants to break it, both parties must agree. However, tenants are not required to agree to break the lease, so the original terms are still valid until the lease expiration date.
If landlords provide a valid reason to break the lease, tenants typically have 30 to 60 days to find their next home.
4 Reasons for Landlords to Break a Lease
In most cases, local ordinances allow landlords to break the lease in the following instances:
1. Breaking a Lease for Multiple Lease Violations
A lease violation happens when tenants go against the rules and clauses outlined in a lease agreement. Some landlords may break the lease or pursue eviction if tenants commit multiple lease violations, such as illegally using the property or missing rent for multiple months.
If you’re a landlord in a scenario like this, it’s generally best to first talk to your tenant to resolve the issue without breaking the lease or evicting them. You can also amend the lease to address the issue, protect your rental business, and implement boundaries with your tenant.
But if breaking a lease seems like the best option, check with local landlord-tenant laws to know what route is best for you.
2. Breaking a Lease to Sell the Property
Landlords are generally allowed to sell their property without a tenant’s permission, and they can choose if the tenants need to move out or transfer the lease to the new property owner.
In situations like this, landlords are advised to inform tenants of their plans to sell the property in advance to provide them with sufficient time to find their next home. Tenants can also choose to stay in the same property (if allowed by the landlord) and are okay with having a new landlord.
3. Breaking a Lease Before the Tenant Moves In
There may be times when the landlord may change their mind about renting the property to a tenant before they officially move in. The change of mind can be due to wanting to live in the property longer, sell the property, or needing more time to renovate the property.
In any case, landlords must move forward with the tenancy unless the tenant also agrees to break the lease through a written agreement. If the tenant doesn’t agree to break the lease, it may be best to consult a lawyer to determine your options.
4. Breaking a Lease to Renovate the Property
Landlords are responsible for providing a safe and habitable living space for tenants. They must also maintain the property and repair anything that violates health and safety standards.
A landlord can terminate the lease early if they need full access to the property to complete the repairs — especially if the upgrades are expected to take a few months to complete. It’s best still to provide tenants with early notice and sufficient time to find their next property unless the repairs are urgent.
Pro tip: Some landlords offer to cover lodging costs for a set timeframe, so tenants have a place to stay during their home search.
How to Legally Terminate a Lease Early
Landlords can modify the lease term with a lease amendment to terminate an existing lease early. You can change the expiration date to be sooner or to explicitly state the breaking of the lease. Both parties will need to sign an amendment to be enforceable.
Landlords can hire a lawyer to draft the appropriate documentation or use a platform like Avail to access free lawyer-written lease amendment templates.
All you need to do is create an account to add your rental properties and invite your tenants to Avail. You will then be prompted to add the parties involved, the effective date, and the amended part of the lease.
You can then download the document to send to your tenant for them to sign and return for your countersign. Once all parties have signed, the document can be stored in your dashboard for future reference.
Access Lawyer-Written Lease Documents With Avail
The key to breaking a lease legally as a landlord is informing your tenants in advance, ensuring your reasons are valid according to local ordinances, and getting the tenant’s permission in some cases. To help you break a lease, you can use an Avail lease amendment template to amend your lease at no additional cost.
Create an Avail account to get started today to access lawyer-written lease documents to help protect you, your rental business, and your tenants.
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Nearly 90% of renters are pet owners, so it’s important to ensure your lease agreement includes a pet addendum (or pet policy) that states rules regarding pets, especially emotional support animals (ESA) and service animals.
In this article, we provide a general overview of pet addendums and share ways you can protect your rental when dealing with pets as a landlord.
What Is a Pet Addendum?
A pet addendum is a legal document that outlines a landlord’s terms and conditions on having pets, ESA, and service animals on the property. Most lease agreements include a pet-related clause, but if not, you can use a pet addendum to legally add new information to an existing lease or a lease amendment to modify or change an existing lease.
The pet addendum generally includes the following information:
- Date the original lease is being amended or changed
- The address of the property the pet will be allowed to live in
- Your information as the landlord
- The tenant’s name and information
- Information on the pet, such as the name, breed, size, gender, age, and weight
- The amount of pet fees the tenant needs to cover (pet rent, deposit)
- Each party’s signatures
Why Rental Agreements Should Include Pet Addendums
If you plan on allowing pets, include a legally-binding document on pets that outlines rules the tenant must follow, breed and size restrictions (if any), and any costs or fees the tenant needs to cover.
Your rental agreement should also include a section on pets, even if they’re not allowed, that outlines the consequences of having unauthorized pets on the property and what documents they need to provide for ESA and service animals.
What Could Happen If You Don’t Cover All Types of Pets in a Lease?
Failing to include a pet clause or a pet addendum can make it difficult to enforce your rules, charge the proper pet fees, and leave you responsible for property damage caused by the pet. Additionally, if your lease agreement does not address ESA or service animals, this can result in violating a renter’s rights, increasing the chances of landing in a legal situation.
One real-life example is when Riley Adams, a certified public accountant (CPA) and the owner of Young and the Invested, needed to amend the lease about service animals. “My tenant filed all the appropriate paperwork to register her animal as a support dog [but] it violated my lease terms, so I needed to amend the contract to state qualified service animals with appropriate paperwork would be permitted on the property,” he shares. If he didn’t, his tenant threatened legal action for violating her rights. But by updating the terms of the lease, he was able to resolve the situation amicably. However, this may not always be the case, so he emphasized the importance of considering ESA and service animals when drafting the rules on pet ownership to avoid landing in a similar situation.
3 Ways to Cover Pets in Your Lease Agreement
Here are three legal documents you can use to address pets in your lease agreement.
- New lease agreement: If you’re creating a new agreement, you can use an Avail lease agreement that’s lawyer-reviewed, state-specific, and includes locally-required information and a pet clause.
- Pet addendum to rental lease: A pet addendum can be used if your lease already has a pet policy, but you need to add new terms not initially covered.
- Pet amendment to rental lease: A pet amendment is ideal when you need to modify an existing pet policy, similar to Riley’s experience, where a portion of the agreement needs to be altered.
Can Pet Addendums Exclude Emotional Support Animals?
Most states treat emotional support animals differently than service animals and have different legal protections. However, the Federal Fair Housing Act (FHA) prohibits landlords from turning tenants away who have a mental or physical disability and have a service animal or ESA. Landlords must make “reasonable accommodations,” even if they don’t allow pets on the property.
To learn more about local regulations, refer to the landlord-tenant laws.
Create a Lawyer-Reviewed Lease Amendment
The more information your rental agreement provides on pets, the easier it will be to handle hiccups from renting to pet owners. If you need to create a lease agreement that includes all the information required to protect you and your rentals, create an Avail account to use our lawyer-reviewed lease templates. You can also create our lease amendment templates if you need to modify an existing lease that doesn’t cover pets.
Get started today with Avail.
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Occasionally, your tenant may not vacate your rental property when a lease is up. As such, you may wonder how long a tenant can stay after the lease expires. This situation can be challenging to navigate, so it’s crucial to have all the facts before you take action.
This article will discuss what landlords should know, how to handle a tenant who won’t leave, and how to prevent the situation from occurring.
Can a Tenant Stay After the Lease Expires?
A tenant can usually stay at a rental property after a lease expires as long as the landlord allows them to. Suppose the original lease isn’t renewed or a new lease isn’t signed. In that case, the tenant may enter into one of two types of tenancy:
- Tenancy at will: This is when a tenant continues to pay rent with the landlord’s permission until either party wishes to terminate the agreement. A tenancy at will is not the same as a month-to-month lease since there isn’t a binding lease in the former situation.
- Tenancy at sufferance: If a landlord doesn’t give a tenant permission to stay but hasn’t evicted them, they have a tenancy at sufferance. In this case, it’s essential to understand your local landlord-tenant laws before taking action, as states may vary in how long tenants can stay in the property after the lease expiration date.
What Is a Holdover Tenant?
If either of the situations mentioned earlier occurs, your tenant is now considered a holdover tenant — someone who remains in the rental after the lease has expired. If the landlord continues to accept rent payments from them, a holdover tenant may have the legal right to occupy the property.
Holdover Tenant Risks
This arrangement may not bother you if you have a great relationship with your tenant and allow them to stay past the lease expiration date. However, there are risks to consider when dealing with a holdover tenant.
- Reduced landlord control: Since a lease agreement doesn’t bind a holdover tenant, you’ll have to be mindful of things like property damage, unapproved pets, rental arbitrage, and more. Holding the tenant accountable or pursuing legal action may be challenging without an enforceable lease.
- No guarantee of consistent rental income: Rental income from a holdover tenant isn’t guaranteed. They may pay rent late or notify you of plans to vacate before a rent payment is due if they have a tenancy at will. This can leave you with less income than initially planned and provide short notice to fill a vacancy.
- Delayed updates and maintenance: If you had plans to update a unit as part of the rental turnover process, your goals might be interrupted by a holdover tenant. For example, you may need to postpone repairing a water-damaged ceiling, which can worsen the damage and ultimately cost more. Similarly, a holdover tenant can also delay renovations that could increase the value of your rental.
How to Deal With a Holdover Tenant
Landlords have a few options when a tenant stays after the lease expires. Here are the main four to consider.
1. Allow the Tenant to Stay
Allowing the tenant to stay while continuing to collect rent is an easy way to avoid confrontation. However, landlords should know the risks of allowing holdover tenants to stay without an active lease and how this can impact their rental business before choosing this route. You may also want to consult with a lawyer or refer to your local landlord-tenant laws for important rules to be aware of.
2. Negotiate a New Lease
By negotiating a new lease, the landlord and tenant will again have a legally-binding contract. This may help reduce the risks to the rental property since landlords can add clauses to enforce rules and restrict certain actions.
Use an Avail lawyer-reviewed lease agreement for your rental properties today.
3. Offer Cash for Keys
A landlord may offer a tenant who refuses to leave cash as an incentive to cooperate. This is where a tenant agrees to vacate on a specific date in exchange for a payment from the landlord.
This method is a less expensive alternative to a formal eviction, but review your local landlord-tenant laws before taking this path to avoid legal violations.
4. Pursue Eviction
Landlords may also consider evicting a tenant who refuses to leave after the lease expires. The process varies from state to state, so you may wish to consult legal counsel before initiating an eviction.
If you plan to pursue this option, you must not accept any complete or partial rent payments from the tenant, as doing so will negate the eviction process. Using a rent collection app like Avail can make this easy since landlords can deny payments and have the option to freeze payments entirely in the case of an eviction.
What to Avoid If a Tenant Stays
Because holdover tenants have rights, there are actions and behaviors that landlords must avoid, even if the tenant isn’t paying rent. Landlords cannot:
- Threaten or harass a tenant to convince them to leave.
- Refuse to make repairs that affect the tenant’s health and safety.
- Change the locks while the tenant is still inhabiting the property.
- Perform a self-help eviction.
- Retaliate with a rent increase.
- Shut off the utilities.
These and other actions could violate a tenant’s rights and lead to lawsuits if the tenant decides to pursue legal action.
How to Prevent Tenants from Staying After the Lease Expires
An easy way to ensure a tenant doesn’t become a holdover tenant is to explicitly state your rules and expectations of what will occur towards the end of the tenancy in your lease. Clear instructions in a signed lease agreement will ensure you’re covered if you pursue legal action against a holdover tenant.
With a property management software platform like Avail, you can access lawyer-reviewed lease templates to use for your rental. Add the start and end dates, specify the rent amount and additional fees, and add clauses — such as one regarding lease renewal — to help protect you and your business from tenants staying past the lease expiration date.
Suppose you’ve already signed a lease and didn’t include a clause addressing what happens after the lease expires. In that case, Avail allows landlords to include lease amendments — documents used to legally modify an active lease agreement. After collecting signatures from your tenants, the amendment can easily be uploaded and paired to the lease document in your Avail account.
Create Lawyer-Reviewed Lease Agreements With Avail
Dealing with tenants who stay past their lease terms can be challenging for landlords. By using Avail, landlords can find the tools they need to create clear lease agreements that reduce the likelihood of a holdover tenant. Customize your lease, add relevant clauses, and collect signatures from your tenants — all online. Create an account today to get started.
If you are dealing with a tenant who won’t leave after the lease has expired, you can consult your fellow independent landlords through the Avail Community Forum. Landlords can use this online space to connect, ask questions, and share solutions for their rental property management needs.
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In an ideal situation, tenants would notify you of their plans to sublease a rental property. But in the case of an illegal sublease, you may find a new tenant living in your rental property without your consent.
Before deciding what to do, it’s important to remember that both parties have different protections when a tenant sublets your rental without permission.
Keep reading to learn what your options are and how to avoid violating a tenant’s rights.
Can My Tenant Sublet A Room Without Permission?
Tenants cannot sublet their room if the lease agreement explicitly states it’s not allowed without the landlord’s consent. Some states do require landlords to accept a tenant’s proposal to sublet their room, but tenants should still notify the landlord of their plans and follow the guidelines in the lease to avoid violating the agreement or possibly being evicted.
Once doing so, tenants and their landlord generally sign a sublease agreement to ensure all parties agree with the terms before someone new moves into the property. But if you’re unsure how to approach this and the lease agreement doesn’t include a sublease clause, it’s best to refer to local landlord-tenant laws to learn more about local ordinances on this topic.
What to Do When Tenants Are Subleasing an Apartment Without Permission
Before deciding on what to do, here are three steps you can take to resolve the issue.
1. Confirm Tenants Are Illegally Subletting Rental
Get written confirmation a tenant is subletting without your consent before providing a lease violation notice. To do this, you can contact your tenants to ask them if they’re illegally subletting the rental and why you believe they’re doing this without your consent.
Although they haven’t confirmed this yet, you can also remind them of the sublease clause in the lease that states how this needs to be approached to avoid violating the lease and the consequences of illegal subletting.
If the lease agreement does not include a sublease clause, you can remind tenants of the importance of notifying you due to possible insurance issues and local occupancy limits.
2. Notify the Tenant of Next Steps
Once tenants have confirmed they’re subleasing their unit without approval, you can notify the tenants of next steps that comply with local landlord-tenant laws. If you don’t want to allow it and confirmed you can deny subletting according to local ordinances, determine whether the new tenant can stay or will need to move out within a certain timeframe.
However, if this is fine, notify the existing tenant and subtenant of what they must do to ensure you’re comfortable with the new arrangement. This can involve meeting the new tenant in person or virtually, screening them to learn more about their rental history, or creating a sublease agreement that lets all parties know who is responsible for rent and property damage costs.
3. Pursue Next Steps Based on Tenant’s Response
If your lease agreement does not cover subleasing but you plan to allow it, legally modify your lease with an Avail lease amendment template written by trusted lawyers. In a few steps, you can include a new clause in the lease that outlines who’s responsible for paying rent each month (the existing tenant or subtenant) and property damage costs once the new tenant moves out. The new agreement will then be enforceable once all parties have signed, and will be stored in your Avail dashboard for easy access.
If subleasing is not allowed, you can provide tenants with a lease violation notice for not notifying you of their plans to sublease. You can also explore eviction, but most landlords only do so when tenants have committed several lease violations since eviction is costly.
However, it’s best to work with a real estate lawyer to explore all your options based on local regulations.
Why Is Subleasing Not Allowed At Some Properties?
Some landlords do not allow subleasing due to the increased risk of financial loss, property damage, and having less knowledge of the subtenant’s rental history. Depending on the state, they also have the right to deny subletting altogether.
If you’re set on subleasing as a tenant, it may be worth talking to your landlord to see what they need to feel comfortable with this arrangement — whether it be screening prospective tenants or signing a sublease agreement. Another option is to break the lease early if you plan on moving out for the remainder of the lease term. Although this option does require you to pay a fee to break the lease, this removes the need to find a subtenant.
Is Subleasing A Tenant’s Right?
States vary on whether or not tenants are legally allowed to sublet their apartments, so refer to local landlord-tenant laws to confirm. If subleasing is a tenant’s right in the state, then landlords must allow tenants to find a subtenant to fill their place for a portion of the lease term.
Protect Your Rentals With Avail
Dealing with an illegal sublease can be tricky as a landlord, but there are options you can explore to remedy the issue. To protect your rental business, you can create an Avail lease agreement that’s lawyer-reviewed, state-specific, and includes locally-required lease clauses to protect all parties. Our lease templates also include a sublease clause that can be further customized with Unlimited Plus to ensure you’re prepared for subleasing.
If you’re already in a legally-binding rental agreement that doesn’t include a sublease clause, you can make changes to the document with an Avail lease amendment for free.
Create an account or log in today to get started with Avail and access our library of lease documents.
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When a tenant breaks the lease agreement’s terms, they have committed a lease violation. Most states require landlords to give the tenant reasonable time to correct the violation before pursuing eviction. However, some states require they must first be made aware of the issue with a lease violation notice.
In this article, we outline what to include in a lease violation notice and when to provide the notice to tenants.
What Are Common Lease Violations?
A lease violation occurs when a tenant goes against the rules and clauses outlined in the lease agreement, which can vary from conducting rental arbitrage to renovating the property without the landlord’s consent. Other examples of common lease violations are:
- The tenant receives more than one noise complaint
- The tenant has occupants living in the rental that aren’t on the lease
- The tenant is using the property for illegal purposes
- The tenant is late on paying rent
- The tenant is using the backyard in an unauthorized way
- The tenant got a pet without the landlord’s permission (excluding emotional support animals and service animals)
If you’re aware the tenant has violated the lease agreement, then the next step is to send them a lease violation notice.
What to Include In a Lease Violation Notice
The notice should outline how the tenant violated the lease, how much time they have to correct the violation, and what the consequences are for further offenses. Other items the notice should include are:
- The rental property address and unit number (if applicable)
- The tenants’ names on the lease agreement
- The date you wrote the lease violation notice
- When the violation occurred
- The landlord’s signature
Your lawyer can help draft the lease violation notice to ensure it does not violate local landlord-tenant laws or lead to discrimination. States vary on how landlords should provide a lease violation notice, whether in person or through certified mail, so it’s best to refer to local landlord-tenant laws to confirm.
How Long Do Tenants Have to Correct a Lease Violation?
Local landlord-tenant laws outline how long tenants must correct a lease violation, but the timeframe is generally about 14 to 30 days. In the case of emergencies, tenants are advised to remedy the situation as soon as possible, especially if the violation impacts the health and safety of other tenants. In most cases, landlords can pursue eviction if the tenant fails to fix the violation or respond to the lease violation notice.
Access Lawyer-Reviewed Lease Documents With Avail
Dealing with lease violations can be stressful when managing a rental property, but having lawyer-reviewed lease documents can ensure you’re protected. With Avail, you can access state-specific lease agreements and lease amendments for your rentals — for free. These templates can be further customized with Unlimited Plus, making it easier to protect all parties involved.
Create an account or log in to set up your rentals, access our lease documents, and more.
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When the lease expiration date is approaching, tenants have three options: they can renew their lease, request a lease extension, or move out. If tenants want to stay in the rental property, exploring a lease renewal or lease extension option may make the most sense.
A lease renewal is when the tenant and landlord agree to another lease term, which may require creating a new lease with updated clauses and a higher rent price in most cases. A lease extension is when tenants need the term extended for a certain period with a lease amendment.
Both options have similarities, but it’s important to learn more about the differences between a lease extension and a lease renewal before deciding what to do.
Lease Extension vs. Renewal: How They Differ
Both lease extensions and lease renewals allow tenants to stay in the rental property longer, but landlords must provide different documentation to ensure all parties are protected.
If the tenant requests a lease extension, the landlord can create a lease amendment to update the terms of the lease agreement legally. Even if the lease agreement states an expiration date, the lease amendment will extend the terms past the date and outline the rules the tenants need to abide by. However, some states can vary in rules regarding lease extensions, so refer to local landlord-tenant laws before creating a lease amendment.
In the case of a lease renewal, landlords will need written confirmation that the tenant wants to renew the lease and accepts the new rent price to create a new lease agreement with the updated terms. Once the tenant signs the new lease and the original lease expires, the new one will take effect.
The Pros and Cons of Lease Extensions
Exploring lease extensions offers benefits for landlords and tenants, so we outlined this option’s top pros and cons.
Pros of Lease Extensions
- Give both parties more time: Lease extensions give landlords more time to find their next tenant and tenants more time to find (or move to) their next residence. This can be especially helpful for tenants looking to buy a property or waiting to move until they close on the homebuying process.
- The same rental agreements terms: Lease extensions allow the terms to remain the same for a few more months if both parties have been satisfied with the current lease terms. Landlords will only need to create a lease amendment to extend the lease versus creating a new lease agreement.
Cons of Lease Extensions
- Unable to increase rent: Unlike lease renewals, landlords cannot increase the rent price since the same lease is still active with a lease amendment. This makes it harder to increase profits until a new tenant moves in or a new lease agreement goes into effect.
- Short-term solution: While lease extensions provide landlords and tenants more time, lease extensions are short-term solutions. Landlords will still need to turnover the apartment and tenants will still need to move out.
The Pros and Cons of Lease Renewals
Landlords generally present lease renewal options to tenants they’ve enjoyed renting to. But before agreeing to renew the lease, landlords and tenants should know the pros and cons of lease renewals.
Pros of Lease Renewals
- Avoid the apartment turnover process: If a tenant decides to renew the lease for another team, landlords can avoid the apartment turnover process and save on various expenses.
- Avoid moving expenses: For tenants, staying at the same rental can eliminate the moving process and any associated expenses.
- A reasonable rental rate: Even if the landlord does increase the rent from the previous term, this can still be less than what other landlords are charging in rent. According to the latest Avail Quarterly Landlord and Renter survey, surveyed tenants who moved from a prior rental within the past year reported that rent prices increased by nearly 27% — almost double what those who renewed their lease are facing. So, while increased rent is never ideal, tenants may save more by renewing an existing lease than moving.
Cons of Lease Renewals
- New lease agreement: To renew a lease, landlords will need to create a new lease agreement with the updated terms. To do this, you can access our lawyer-reviewed and state-specific lease agreements that you can further customize with Unlimited Plus. Our system makes it easy to add a new rent price, custom clauses, and more to e-sign for free.
Can Tenants Negotiate the Lease Renewal Terms?
Tenants can negotiate the lease renewal terms, especially if certain clauses violate their renter’s rights or local landlord-tenant laws. However, if the new terms on the lease agreement don’t violate local ordinances, then the landlord has the right to determine what can (and can’t be) negotiated.
If you’re planning on negotiating the terms as a tenant, it’s important to build your case beforehand and communicate what you’d like adjusted before signing the lease. This can increase your chances of convincing the landlord to change the terms. Plus, landlords cannot change lease agreements once all parties have signed.
How to Decide Whether to Renew or Extend the Lease
Suppose you’ve enjoyed renting the property and have a good relationship with the landlord. In that case, it may be worth renewing the lease for another term — especially if you can’t find other comparable rentals. On the other hand, if you need more time to find another rental or move into a purchased home, extending the lease can provide more flexibility without committing long-term.
Based on the pros and cons of each scenario, you can determine whether renewing the lease or extending it for a short period is best for you.
Create an Avail Lease Amendment
Landlords planning on extending an existing lease can easily do so through Avail now that lawyer-written lease amendments are free. You must create an account, set up your rental properties, and input the required information to create a lease amendment. Once finalized, our system will email the document to tenants to download, sign, and re-upload to Avail for easy access.
Create an account today or log in to access lawyer-reviewed lease documents for your rental.
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Tenants often request adding someone new — either a roommate or partner — to a lease agreement once it’s legally binding. In most cases, it is possible and easy to add someone to an existing lease if it’s allowed by the landlord. However, the landlord will need to write a lease addendum or lease amendment to add new information to the lease that can protect all parties. Tenants must also know how to notify the landlord to avoid violating the lease.
Here’s everything landlords and tenants should know about adding someone new to a lease.
What to Know About Adding Someone to a Lease
Before officially adding someone to an existing lease, landlords are advised to perform the following tasks to ensure everything goes smoothly.
- Conduct your tenant screening process: It’s important to perform your usual tenant screening process to get a comprehensive view of the new person’s rental background. With Avail, you can request a rental application and tenant screening reports (TransUnion credit report, eviction report, and background check) in minutes. Once the applicant has completed their application, you can determine if you want to accept or deny their application.
- Check landlord-tenant laws: Refer to local landlord-tenant laws to see if there are laws regarding adding new tenants to lease agreements or occupancy limits for each type of property.
- Update the rent terms: If the applicant meets your criteria and you’ve accepted their application, landlords should update the rent terms with a lease addendum or lease amendment. Failing to do so can make it harder to navigate certain situations, like eviction, and result in unwanted guests in the rental property.
How to Add a New Tenant to an Existing Lease
We outlined the top three steps to adding a new tenant to an existing lease to help guide you along the process.
1. Request a Rental Application
You’ll need to create an Avail account to request a rental application and tenant screening reports from an applicant. There are two options: Unlimited or Unlimited Plus, which gives you access to additional features such as waived ACH fees, lease cloning, customizable rental applications, and lease agreements.
Once you’ve picked your subscription, add your rental property (if you haven’t already) to request a rental application and your preferred tenant screening reports from the prospective tenant. Depending on the applicant’s application, you can decide if you want to accept or deny it. If their application is accepted, the next step is creating a lease amendment to update the rental agreement terms.
2. Create a Lease Amendment
To create an Avail lease amendment, you’ll need to compile the following information:
- The parties involved (or the new tenant)
- The effective date
- The amended part of the lease
You can then email the ready-to-sign document to all the parties involved to collect their signatures.
3. Collect Signatures From All Parties
The tenants will need to download the document to add their signatures, but once signed, it can be re-uploaded to the platform for easy access. Once the landlord has added their signature, the document will be considered legally binding, like the lease agreement.
Can a Landlord Refuse to Add Someone to The Lease?
Landlords can refuse to add someone to the lease as they are not legally required to allow changes to legally-binding lease agreements. If the landlord denies the prospective tenant’s application, tenants must find a different option or keep the lease agreement as is.
Can Tenants Have a Roommate Without Telling the Landlord?
In most cases, active lease agreements include a clause about adding a new tenant to the lease and the consequences of not notifying the landlord. This can result in costly fees or violating the lease terms, potentially leading to eviction. If there isn’t a clause in the lease, it’s important to notify the landlord since it’s their rental property, and occupancy limits could limit how many people live in a certain type of property.
For that reason, tenants are advised to notify the landlord when considering adding a roommate to the lease to ensure all parties are aware and reduce the chances of violating the lease.
Add New Tenants With Lease Amendments
Adding someone to an existing lease agreement is easy, but landlords need to screen prospective tenants and protect themselves with a lease amendment. With Avail, you can access our free lawyer-written lease amendment and lease agreements to help protect your rental business, yourself, and your tenants throughout the lease term.
Create an account or log in today to set up your rental property, manage your rentals, and more in one place.
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With vacation and short-term rentals rising in popularity, more tenants are considering exploring rental arbitrage to generate a profit while renting. This is an easy way to enter the vacation rental industry without the upfront costs of buying a property, but both landlords and tenants should know whether or not this is legal and what factors to keep in mind.
In this article, we share information about rental arbitrage and provide resources that can ensure landlords are protected from major property damage and unpaid rent.
What Is Rental Arbitrage?
Rental arbitrage is when tenants commit to a 12-month to 15-month lease for multi-room rental properties to rent out as either vacation rentals on Airbnb or short-term rentals. This is often done to help tenants make money while renting and utilize rooms they’re not using to get started in vacation real estate investing.
If a tenant is paying $1,800 in rent per month, they can rent out a room for $160/per day. If a guest stays for one week, they can generate a profit of $1,120 to either use on rent or other expenses.
How Does Rental Arbitrage Differ From Subletting?
While rental arbitrage and subletting may seem the same, there are some notable differences. When tenants sublet a room in a rental, it’s generally for one month to three months, depending on their situation. In the case of rental arbitrage, tenants allow guests to rent a room for a few days to several weeks.
States may also vary in laws regarding subletting and short-term rentals, so it’s important to refer to local landlord-tenant laws to be well informed about what is (and isn’t) allowed.
Is Rental Arbitrage Legal?
In most instances, rental arbitrage is legal but that does not mean there aren’t restrictions to keep in mind. States can have laws regarding short-term rentals that can impact how rental arbitrage is handled, but landlords can also deny tenants from renting out rooms. Unlike subletting, most states don’t require landlords to accept a tenant’s proposal to rent out rooms as vacation rentals but refer to local ordinances to confirm.
Additionally, it may be helpful to complete the following steps:
- Review the lease agreement terms: Lease agreements should generally include a clause on short-term rentals that can outline whether or not rental arbitrage is allowed. If allowed, tenants can see what steps to take before posting listings online.
- Talk to the landlord: If tenants consider renting a room as a vacation or short-term rental, it’s important to first talk with the landlord. Speaking with them can help determine if it’s allowed without any penalties and if any laws regarding short-term rentals to consider. This will also allow landlords to add a lease amendment to cover both parties if something happens due to rental arbitrage, if not already included in the lease.
With Avail, you can easily add a lease amendment to an existing lease on the platform to legally modify the terms of the lease for free. Once the lease amendment is created, you can download the document to collect online signatures and re-upload it to the platform for both parties to have access.
Do Landlords Allow Rental Arbitrage?
Landlords have the right to accept or deny a tenant’s ability to rent out unused rooms to guests as short-term rentals. Despite the benefits of rental arbitrage for tenants, landlords may be hesitant to allow it due to increased foot traffic to the rental, which can result in more wear and tear and constant turnover. Additionally, if guests aren’t being screened before renting a room, this can increase the risk of hiccups occurring during rental arbitrage.
As a tenant, you can talk with your landlord to see what their thoughts are on rental arbitrage and what you can do to calm their worries. For example, if landlords are worried about property damage, you can let guests know they’ll be responsible for covering associated costs. The key is knowing what reservations landlords have on renting out rooms to guests to create a plan both parties are comfortable with and convince them to allow it.
How to Determine If Rent Arbitrage Is For You?
There are benefits to rent arbitrage, but it’s important first to determine if it’s the right option for you. To help you decide, you can consider the following factors:
- Local ordinance requirements: If local ordinances allow for short-term rentals, it’ll be easier to get started. However, some states may limit whether or not tenants can rent out rooms in the unit or may require you to complete certain steps before publishing the listing online. For this reason, refer to local ordinances.
- Location and neighborhood: Some neighborhoods may have a higher demand for short-term rentals than others, especially if the rental is located in a major city or high-traffic area. If the rental demand is high, then rental arbitrage can be a great way to generate income while renting.
- Total costs: Although guests rent the room, the person on the lease agreement will still be responsible for supplying furniture and fixing property damage caused by the short-term guests. The original tenant is also responsible for paying the entire rent amount and utilities each month, so it’s important to determine if you can afford the additional costs.
Access Lawyer-Written Lease Amendments With Avail
Rental arbitrage is a great way for tenants to generate monthly income by renting out guest rooms as vacation or short-term rentals. However, it’s important to know how to handle this to comply with local landlord-tenant laws and avoid costly hiccups.
One way landlords can protect themselves in the case of rental arbitrage is by adding a lease amendment to an existing lease to modify the terms legally. The lease amendment can include what steps tenants need to complete before listing the room, what they’re responsible for covering, and what can happen if hiccups arise due to rental arbitrage.
Create an account with Avail to access lawyer-written lease amendments and state-specific lease agreements in one place.
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Landlords cannot change lease agreements once all parties sign, but lease amendments can help legally modify the lease agreement’s terms. However, it’s important to know what information to include to ensure the new amendment for a lease includes the right language, abides by local landlord-tenant laws, and is enforceable.
Here’s everything to know about lease amendments to help you easily create one for your rental.
What Is a Lease Amendment?
A lease amendment is a document between a landlord and tenant that can be used to legally modify the terms in an active lease agreement. Adding a lease amendment to an existing lease can ensure landlords are fully protected when changes occur that the original document does not cover.
Both the landlord and tenant must consent and sign the amendment for it to be enforceable.
When Can I Use a Lease Amendment?
You can use a lease amendment to address changes during the lease, such as when a tenant gets a new pet (if allowed) or cannot pay rent due to financial hardship. Other examples of when landlords can use a lease amendment are the following:
- A tenant wants to break a lease earlier than the set expiration date
- The tenant needs to go on a payment plan for unpaid rent
- The tenant wants to sublet their apartment
- Your tenant is requesting to add another person (or roommate) to the lease
- You want to implement new boundaries on property use
In some states, tenants are not legally required to agree to a new lease amendment, so it’s important to communicate the reason for the new lease agreement change.
How to Write a Lease Amendment
Adding a lease amendment is easy to do with Avail. After making an Avail lease agreement, you can create and add additional lease documents like a lease amendment. Here’s the information you’ll need to input:
- The parties involved: The amendment should include your name (or LLC) and your tenants’ name.
- The effective date: Add the date on which the amendment will be effective. Generally, landlords have the first day of the upcoming month be the effective date.
- The part of the lease you’re amending: This section should describe the changes or modifications you’re making to a section in the original lease agreement. It may be helpful to refer to the lease agreement while writing the changes to ensure the correct information is included.
- Download to collect online signatures: You will receive an email with the lease amendment and an option to download the document directly on the platform to collect signatures from tenants. Once all parties have signed, you can upload the document to your dashboard for both you and your tenants to easily access.
Do the Original Lease Terms Still Apply When Adding Lease Amendments?
Despite adding a new lease amendment, the original terms in the active lease agreement still apply. Lease amendments can serve as updated rules and regulations complimenting a lease agreement, but do not override the original lease.
Lease Amendment vs. Addendum: Are They the Same Thing?
Lease amendments and lease addendums are sometimes used interchangeably, but they’re technically two different types of legal documents. A lease amendment helps modify an active lease agreement, while a lease addendum clarifies or adds to a clause in the original document.
Create a Lease Amendment With Avail
Lease amendment can be a great way to legally modify a lease agreement to address changes during the lease term. With Avail, you can access lawyer-reviewed, state-specific lease agreements and create lease amendments for your rentals — for free.
Create an account or log in to easily make a lease amendment for your rentals in minutes.
*This feature is currently active for 20% of users.
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Although most tenancies have set expiration dates, there may be instances where tenants refuse to leave once that date arrives. This type of scenario may be tricky to navigate, but there are steps you can take to evict holdover tenants or renew the lease for another term with a higher rent price.
Keep reading to learn everything to know about holdover tenants and ways to connect with other landlords that previously experienced this situation.
What Is a Holdover Tenant?
A holdover tenant is a tenant who remains in the rental property after their lease agreement expires. States vary in how long tenants can stay in the property after the lease expiration date, so it’s best to refer to local landlord-tenant laws to know the exact duration.
There are two ways to handle holdover tenants: you can require the tenant to pay a higher rent price to stay in the unit or deny payments to begin the eviction process.
What to Know About Holdover Tenants
One of the best ways to avoid holdover tenants is by including a clause in your lease agreement that clearly states what will happen once the lease term ends. For example, your lease can state that the tenancy will convert to month-to-month with a rent price based on the rental’s market value if they don’t move out by the time the lease term expires or provide a non-renewal lease letter by the locally-required timeframe.
Choosing to collect rent (or deny payments) can also influence the eviction process in some states. Collecting rent from a holdover tenant can automatically result in a new 12-month or month-to-month lease. You will then need to provide a notice of termination before eviction. However, if you deny payments, then you can initiate holdover proceedings in fewer steps.
Do Holdover Tenants Have Rights?
Depending on the state, holdover tenants may have limited rights once the lease ends, but it’s best to refer to local landlord-tenant laws to confirm. In most cases, holdover tenants can have some protections against eviction or increased rent prices, but that’s not always the case since they have a tenancy at sufferance. Tenancy at sufferance means the absence of objection without genuine approval from the landlord but has not been evicted.
What Can Lead to a Holdover Tenant?
Lack of communication on what can happen once the lease expires can lead to tenants not knowing what to do past the expiration date. For that reason, it’s best to present lease renewal options to tenants 30 to 90 days before the lease expires. Presenting lease renewal options also allows tenants to share their plans to renew or provide a non-renewal lease letter if they plan to move out.
In addition to presenting lease renewal options, you may want to consider having an active lease in place (if not already) with each tenant to make it easier for all parties to know what to do once the lease expires, regardless of the lease duration.
What to Do in the Case of Holdover Tenants
Before pursuing eviction, confirm tenants are considered holdover tenants living in your unit without your permission. If you’ve accepted rent payments from the tenants or in a periodic tenancy — a rental agreement with no set end date — then you’ll need to refer to local landlord-tenant laws and consult a lawyer to determine what you can do next. In some cases, you may need to present a notice of termination to begin the holdover proceeding process, but this can vary.
Some states may allow you to begin the eviction process without notice to the tenant if you have not collected rent from them since the lease has ended. But as mentioned, consult a lawyer to ensure you complete the proper steps.
How Long Does It Take to Evict a Holdover Tenant?
The eviction process can generally last two weeks to several months, depending on the situation. Factors that can affect the timing of the eviction process include:
- When an official notice has been issued to the tenant
- How long it takes the tenant to respond to an official summons and complaint
- If the tenant chooses to answer the complaint
- The trial duration
- If the tenant decides to appeal the decision
Connect With Landlords on the Avail Community Forum
Dealing with tenants that stay past the lease expiration date is difficult, but there are processes to protect landlords. Once you’ve met with a lawyer and reviewed your local landlord-tenant laws, you can connect with other landlords on the Avail Community Forum to see what they did in similar situations. You can also get expert advice on other rental property-related issues that can arise during a lease term.
For added protection against holdover tenants, create an Avail account to access state-specific and lawyer-reviewed lease agreements that include all the state-required clauses, attachments, and disclosures — for free. Our lease agreements can be further customized with Unlimited Plus to make it easy to protect your rental business.
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