Guide to Lease Offers and Renewals, Navigating the Process for Landlords and Tenants
This guide aims to provide landlords and tenants on lease offers and renewals, helping both parties understand their rights and responsibilities. Whether you're a landlord seeking to offer leases or a tenant considering lease offers or renewals, this comprehensive overview will assist you in navigating the process effectively and fostering a mutually beneficial rental relationship.
In Glendale, California, the Right to Lease policy is in place to safeguard tenant rights and provide stability in rental agreements. This policy requires landlords to extend an offer of a one-year lease to their tenants.
Understanding the Right to Lease
The Right to Lease provisions in Glendale were established to address the concerns of tenants facing uncertain housing conditions and frequent lease renewals. By requiring landlords to offer a one-year lease, the City aims to provide renters with the security of longer-term tenancy, offering a sense of stability and peace of mind.
What Does the Right to Lease Entail?
Landlords have the obligation to offer a lease with a minimum term of one year to two categories of tenants: prospective tenants and current tenants facing rent increases.
prospective tenants
When it comes to prospective tenants seeking to lease a unit for the first time, landlords are required to offer them the option of a one-year lease term. However, tenants have the flexibility to choose whether they prefer a month-to-month arrangement or wish to negotiate a different lease term that better suits their needs.
Current Tenants
Current tenants are categorized into two groups: Fixed-term Lease tenants and Month-to-month tenants. Each category has its own specific requirements and timing considerations that both landlords and tenants should be aware of.
Fixed-term Lease
Fixed-term Lease refers to a leasing arrangement where the tenant and landlord have agreed upon a specific duration for the lease, typically for a predetermined period such as one year. During this time, both parties are bound by the terms and conditions outlined in the lease agreement.
Renewal Option: Prior to the expiration of the initial one-year lease, landlords are required to offer tenants the opportunity to renew the lease for another year. This offer should be extended at least 60 days before the lease's expiration date. Tenants then have 30 days to consider the renewal offer and make an informed decision.
Once an offer is made, tenants have the choice to accept or reject it based on their specific needs and circumstances.
Accepting the Offer: If tenants accept the offer, they enter into a one-year lease agreement with the landlord.
Rejection and Subsequent Offers: If a tenant does not respond within the 30 days after notice of renewal, the offer is deemed rejected. In the event that a tenant rejects the initial offer or renewal offer, the tenant continues the tenancy on the month-to-month bases or another agreed upon term.
Future Offers: The requirement to offer a future written lease renewal will be in effect for one full year after the anniversary of the rent increase date. After that, the landlord won't need to offer a one-year lease again unless the tenant asks for one.
Month-to-month
Month-to-month tenancy refers to a leasing arrangement where the tenant and landlord do not have a predetermined end date for the lease. Instead, the tenancy continues on a monthly basis until either party provides proper notice to terminate the agreement. Month-to-month tenancy offers flexibility for both tenants and landlords, as it allows for greater freedom to adjust rental terms or end the tenancy with appropriate notice.
Renewal Option: For tenants who are on a month-to-month and who have previously rejected an offer of a one year lease, a landlord is required to offer a minimum of 30 days notice. Tenants then have 14 days to consider the renewal offer and make an informed decision.
Accepting the Offer: Once an offer is made, tenants have the choice to accept or reject it based on their specific needs and circumstances. If tenants accept the offer, they enter into a one-year lease agreement with the landlord.
Rejection and Subsequent Offers: In the event that a tenant rejects the initial offer or renewal offer, the tenant continues the tenancy on the month-to-month bases or another agreed upon term. If a tenant does not respond within the 14 days after notice of renewal, the offer is deemed rejected.
Future Offers: The requirement to offer a future written lease renewal will be in effect for one full year after the anniversary of the rent increase date. After that, the landlord won't need to offer a one-year lease again unless the tenant asks for one.
Landlords must provide tenants with notice of their relocation rights. Complying with this requirement is essential, as failure to provide proper notice renders any future rent increases null and void.
Noticing requirements
When it comes to the Right to Lease provision, noticing requirements play a crucial role in ensuring that tenants are properly informed and have the opportunity to exercise their rights.
To ensure that tenants are properly offered the option for a one-year lease, landlords must adhere to certain requirements and provide a written offer:
The offer should be included in the same notice as a rent increase;
It must be clearly stated that an offer for one year lease is being made;
The offer itself must be presented in writing and should contain all the necessary details, including the monthly rent rate that will be charged for the entire duration of the lease.
This ensures transparency and clarity for both landlords and tenants, allowing them to make informed decisions regarding the lease term and associated costs.
Consideration for Rent Increase over 7%
It is important to note that all rent increases have the potential to trigger the requirement for relocation assistance offers if they exceed the 7% threshold.
If the proposed rent increase exceeds 7% within a twelve-month period, tenants have the option to explore relocation assistance, safeguarding their financial stability. Unless a landlord is utilizing any unused banked amount, they must also provide an offer for relocation assistance if the property is not exempt from such requirements.
For more information on Relocation Assistance for rent increases over 7%, please read Rent-Based Termination: A Guide to Relocation Assistance.
Exemptions
While the Right to Lease provisions of the ordinance applies to most rental units, there are exemptions to be aware of, including:
Rental units located on parcels with four or fewer dwelling units.
Single Family Homes
Condominiums and Townhouses
Rooms or accommodations in hotels rented for less than 30 days.
Other limited circumstances.
The information provided on this website is not intended to be legal advice. It is recommended to consult an attorney and conduct thorough research before taking any action related to tenancy matters.
Comments