Off The Beaten Path

The Rental Agreement
Off the Beaten Path

Written vs. Verbal Contracts
A lease is a legally binding contract between the tenant and the property owner. It explains the following: conditions under which the property is rented, the responsibilities of the tenant, and the responsibilities of the property owner.

Although verbal agreements are legally binding, they are very difficult to prove in court. Because the tenant and property owner guarantee their responsibilities only by word of mouth, verbal agreements can be very risky. If a conflict arises, there is no evidence of the rental agreement to consult. Avoid verbal agreements. If you do enter into a verbal agreement, have two people that you trust witness the agreement. Written leases are required between all property owners and tenants in East Lansing.

Read your lease carefully before you sign it
If you have questions about your lease, call any of the following agencies before you sign:

HousingResourceCenter: 337-9795
ASMSU Legal Services: 353-3716
Legal Aid of Central Michigan: 394-3121 or 800-968-0044
 MSU-DCL Rental Housing Clinic: 336-8088

Lease Addendum
All landlords must provide a document called the East Lansing Lease Addendum to their tenants. Both parties must read and sign the document as an attachment to the lease. To not do so is a violation of City Ordinance. The Lease Addendum is a tool to educate tenants on their rights and responsibilities and to explain some of East Lansing’s laws and what consequences exist for violating them. A copy of this document is available from the East Lansing Code Enforcement Department.

All leases are not the same. Yours may even contain an illegal clause, which is not enforceable. Look for these clauses in your lease:

  • Name, address and telephone numbers of the property owner. Avoid post office addresses.
  • Name, address and telephone numbers of the owner’s legal agent and maintenance personnel.
  • Description of the premises, including address, furnishings, etc.
  • Term of Agreement—the precise beginning and ending dates of your lease.
  • Rent—the specific amount and how, when and where it is to be paid, including penalty clauses and incentive discount clauses.
  • Security Deposit—the amount and terms of the refund. See section on “Security Deposits.”
  • Legal Occupancy Limits and Use of Habitable Space Clauses—These are intended to shift the full burden for code compliance onto tenants. These legal clauses state the maximum number of persons who can occupy a dwelling or dwelling unit and prohibit the use of certain rooms for sleeping or other purposes. Be aware that the City of East Lansing enforces a strict maximum occupancy law by issuing court appearance tickets for over-occupancy and the illegal use of rooms. Tickets are issued to tenants and rental owners depending upon who is responsible for violating the ordinances.
  • Alteration Guidelines—whether you can make changes in the property; for example, build lofts, paint walls, hang pictures, etc. Most leases require consent of the property owner before changes can be made. Construction of walls to subdivide space may be illegal and may not be allowed by ordinance. Lofts must meet certain building specifications as set forth in the Housing Code.
  • Repairs and Maintenance—process for getting repairs done. The lease should explain what the property owner is responsible for repairing. If you have a written lease, make sure any verbal promises for repair are in writing.
  • Utilities—who pays for what.
  • Subleasing—The property owner must consent before you rent the dwelling to someone else in your place. Follow the lease’s guidelines for this process and what it entails, and consult with the property owner to avoid problems.
  • Re-leasing—The property owner may allow you to leave before the lease expires. Check the lease for this option. Most property owners hold tenants responsible or do not allow this.
  • Rules and Regulations—explains the rules you are expected to follow and the consequences for breaking them.
  • Entry—discusses when the property owner may enter your home or allow entry by City inspectors.
  • Joint Liability—a “joint and several” liability clause means that each person who signs the lease is responsible for rent and other lease terms. Be sure your roommates sign the lease before they move in so you are not solely responsible if they leave. Keep in mind how long you want to live in the unit and how you and your roommates will handle subleasing.
  • Remember that if any of your roommates leave before the lease expires, the remaining roommates are still responsible for paying the entire rent and holding the roommate who left responsible for the remainder of the lease.
  • Rent Escalation Clause—explains the few circumstances in which the property owner can legally raise the rent.
  • After the rental property owner and all tenants have signed the lease, be sure to retain a copy for your records.

Changes in the Lease
You can alter a lease you are considering signing by negotiating with the property owner. Make changes by writing them on the lease in ink and having both parties initial next to the changes.

If you wish to make changes after the lease is signed, do so on a separate piece of paper, and have both parties sign and date it. Keep a copy for your records.

Breaking the Lease
If you wish to get out of your lease before it expires, remember that you are breaking a legal agreement. This is a risky endeavor that could lead to bad credit or a legal suit against you or other tenants for damages. Bad credit histories may remain on record for many years. To avoid this risk, there are several options to consider:

  • Negotiate. By working with your property owner, it is possible to void the lease. Make sure you get the release in writing and signed by both parties.
  • Sublease. Ask the property owner if you may rent the property to another individual in your place. Typically, you are not allowed to receive your security deposit until the lease term ends. Remember you are still responsible for the damages and rent of the property. To protect yourself you may require your subtenant to pay a security deposit; however, the laws governing security deposits would apply.
  • Re-lease. This is an agreement that allows you to be released from the liability of