Exploring Leases and Rental Agreements: Legal Insights
June 22, 2023

When it comes to rental agreements, written contracts reign supreme. While verbal agreements technically hold weight, they often pave the way for disputes and discrepancies. Because rental agreements serve as both legal and practical documents, they must encompass and address fundamental terms. To ensure compliance — on both sides — the contract must also adhere to Vermont state laws.

 

Periodic Agreements and Lease Agreements

 

At the core, a rental agreement lays the groundwork for a tenant's right to occupy a rental unit. Their are two distinctive agreements in this realm - periodic rental agreements, commonly referred to as month-to-month agreements, and leases.

 

Periodic rental agreements naturally expire at the end of each period and can be renewed upon subsequent payments, granting tenants continued residence so long as rent is paid and the landlord does not require eviction.

 

A lease agreement, on the other hand, stipulates a specific duration for the lease, typically spanning six or twelve months. Unlike periodic rental agreements, a lease binds tenants for the entire designated time frame. Leases offer the advantage of shielding tenants from rent hikes and untimely evictions during their term. However, terminating a lease prematurely can prove arduous and costly, and finding a suitable replacement tenant poses challenges. It's important to note that if a tenant decides to vacate before the lease concludes, the landlord may seek compensation for the remaining rent.

 

Core Provisions of a Rental Agreement

 

Landlords typically initiate the negotiating process, presenting the prospective tenant with a written lease or rental agreement. At a minimum, this document addresses the duration of the tenancy, the specified rent amount, and the security deposit. It may also outline maximum occupancy limits and delve into sublease conditions. The lease may include certain restrictions, such as guidelines regarding pets, including limitations on size or quantity, or regulations regarding parking and the utilization of common areas.

 

The lease must clearly indicate the precise amount of rent and its due date, and it should outline the acceptable methods of payment (such as mailing it to the landlord's office or home address, or Venmo). Highlighting the repercussions of late rent payments is equally important . These consequences may involve penalty charges, and habitual tardiness can even lead to eviction notices.

 

Furthermore, the rental agreement should clearly outline the tenant's responsibilities pertaining to repairs and maintenance. This typically entails the duty to maintain the rental unit's cleanliness and sanitary conditions, as it appeared during the commencement of the tenancy. It is crucial to establish instructions on how to alert the landlord regarding any hazardous conditions on the property, and the agreement should unambiguously communicate the restrictions on tenant-initiated repairs and alterations to the unit.

 

Navigating the Termination of a Rental Agreement

 

When planning to terminate a periodic rental agreement or prematurely end a lease, notifying the landlord in advance is of paramount importance. In the case of a periodic rental agreement, the duration between rent payments determines the notice period required from the tenant to terminate the tenancy. Similarly, if the landlord decides to alter the agreement's terms or terminate the tenancy, the same notice period must be observed.

 

Terminating a lease can prove intricate. Since a lease is a legally binding contract, tenants are obligated to pay rent for the entire lease term. However, even if a tenant chooses to break the lease by leaving early, the landlord must make reasonable efforts to re-rent the unit. Vermont mandates this endeavor from the landlord. Consequently, the tenant may be responsible for the costs associated with advertising the unit, and the landlord retains the right to selectively choose the next tenant. In many cases, it is in the tenant's best interest to proactively find a qualified replacement tenant. 

 

Contact a Vermont Landlord-Tenant Lawyer Today

 

If you are a tenant or a landlord with concerns or questions about a lease agreement, the experienced real estate team at Deppman Law PLC can help. Contact Benj or Lesley today for a confidential consultation about your case.

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