Prescott Valley Arizona Real Estate Home Buyers Center.

Prescott AZ Homes for Lease

January 10th, 2008

Prescott Arizona homes make for great rental and lease opportunities for people who are new to the area, or for people who are having a custom home built for them. As a homeowner, it’s good to the requirements for a valid lease.

There are basic contract requirements such as the capacity of the parties to contract, meaning that they are legally competent. There needs to be a mutual agreement on the terms of the lease, the lease terms themselves have to be legal, and there must be consideration — usually this is rent paid by the tenants in return of possession given up by the owner.

The Basic Elements of a Lease

• A description of the premises that tells about the property that is going to be rented
• The term, or lenght of the lease
• Name and signatures of the parties involved in the lease
• The description of how the premises are to be used by the tenant. It’s a good idea to list any limitations here
• The amount to be held as a security deposit by the landlord which will be applied against any repairs that are needed at the end of the tenancy
• The habitability of the property as being safe and that it meets the habitibility requirements of the state are warranted by the landlord. (this is usually implied by state law, even if it’s not mentioned in the lease)
• Quiet enjoyment is an element that greants a tenant to use the property without any legal interference from the landlord or by other tenants (this is usually implied by state law, even if it’s not mentioned in the lease)
• A reentry clause grants the owner of the property to enter and to make repairs or to show it for rent with the appropriate notice given in advance to the tenant
• The amount of rent or a formula for calculating rent (this can include an escalator clause if there’s an anticipation of an increase in rent)
• A description of details for who is responsible for repairs needs to be listed. The tenant is normally required to return the premises in basically the same condition as it was at the time of move-in, excluding normal wear and tear
• Improvements are not an obligation of either the tenant or the landlord, however tenants may usually make improvements when receiving permission from the landlord.
• Options, also known as conditions for the right to renew the lease or to purchase the property or the right of first refusal, giving the tenant the chance to purchase the property prior to accepting an offer from another party
• A holdover clause deals with any rent penalty that may exist if the tenant does not give up possession of the property at the end of the lease
• An exculpatory clause, also known as a hold harmless clause was once used to prevent the tenant from holding the landlord liable for any injury incurred on the property
• Assignment and sublease sets the rights given to a tenant to sublease or assign the premises. This can usually be allowed if there is not a statement that disallows it

In the case of a breach of lease, both parties have certain remedies at their disposal.

Landlord Remedies

The landlord can file a suit for possession, this is also referred to as an eviction. Before filing the suit, the owner must give the tenant notice. If the tenant does not leave upon receipt of the notice, only the courts may remove the tenant and their possessions, by force, from the premises.

A landlord can file a suit for rent in order to recover past-due rents. In addition, landlords have the ability to file a suit for damages and may sue for any damages incurred because of the breach of the lease.

Tenant’s Remedies

A tenant can file a suit for damages which allows the landlord to be sued because they breached the terms of the lease. There is also a remedy refered to as a constructive eviction, this may occur if the premises is no longer in a livable or habitable condition, or in such a state that it forces the tenant to leave. In this type of occurance the tenant may no longer be held responsible for the payment of any future rents.

Arizona Residential Tenant and Landlord Act A.R.S. Title 33, Chapter 10
and Other Pertinent Statutes - this is the actual law for the state of Arizona

Entry Filed under: Buying a Home in Prescott, Prescott Arizona AZ Real Estate Market