Lease Questions (Massachusetts)

[Francisco]

So one of my roommates moved out, and we have another one moving in. We were under a month-to-month agreement with the landlord up until now... but apparently he now wants us to sign a lease.

I'm fine with a lease - I'd prefer something shorter than 1 year as I might look to buy my own house sooner than that... but if it has to be a year, then fine.

The problem is, a couple of items in the lease really bother me with how they're worded.

The term of this lease is 1 year, beginning on 09/01/11, and ending on 8/31/12, although it is possible that the term may end sooner as explained later in the Lease. The term of this Lease will automatically be extended from year to year until either the Landlord or the Tenant notifies the other party to the contrary. Such a notice, which must be given no later than the last day of the month of May, Landlord and Tenant agree that each of them has various rights and duties, and that this Lease is subject to certain conditions, as follows: TENANTS MUST GIVE IN WRITING 90 DAYS NOTICE TO LEASE TERM END.

Okay - so basically if I want to move out in August 2012... I need to let him know in May 2012? If I don't move out by August 2012... it's a year to year lease... does that mean I'd be forced into the lease until August 2013 at that point?

Additionally:
IF SAID TENANTS WISH TO TERMINATE LEASE BEFORE ANY ONE YEAR LEASE TERM THEN SAID TENANTS ARE REQUIRED TO PAY RENT TILL A SUITABLE TENANT IS FOUND AND REQUIRED TO PAY A ONE MONTHS RENT PENALTY EQUAL TO ONE MONTHS RENT

Kinda reaffirming the whole "year to year" thing... I'm not sure if that's at all standard - but it seems to offer next to zero flexibility...

I mean - the rent is great - but those provisions seem like bullshit to me.

Up until now, the landlord was okay with us living month-to-month once the first one year lease expired. The first lease had no such provisions.

One of us is going to talk to him about it tomorrow - as it might just be the agent he had type it up who threw the wacky bullshit in there.

Anyone thoughts/experiences?

[Overburn]

I would figure out problems and bring them up when you talk to the landlord.

The lease I have for my current house was basically 1 year and very strict on moving like yours, but after talking to them, I was able to move it down to 9 months and there was no penalty for moving out as long as I have a replacement set-up. It'd probably help if you had a reason for moving out sooner, like I basically just wanted it August - June for school months and I store my stuff at my parents over summer. If I want to stay longer, I just need to notify them in a 60 day period before school ends

[Francisco]

Yeah - I'm mostly concerned with the prospect of needing to decide in May if I want to move out in August... or if I want to stay put another 15 months.

I'd rather have the lease be whatever term, then just "month to month" - with maybe a 30 day notice of moving ... I think that is pretty reasonable.

[jmc]

Yea... don't sign that.

It sounds like he is setting you up to be a "tenant at will", but the 90 day notice just don't follow into those guidelines.

"Tenancy-at-Will

The other kind of tenancy is called a tenancy-at-will, which means that the lease agreement lasts for as long as both parties want to do business with each other. Sometimes there is no written agreement at all in a tenancy-at-will, but often the tenant is asked to sign a form that says “Rental Agreement” or “Tenancy-at-Will” at the top. This form should include the amount of the monthly rent and basic rules.

A tenancy-at-will does not last for any set amount of time and does not end on a certain date, the way a lease does. In a tenancy-at-will the tenant pays the agreed-upon rent each month, for an indefinite period of time. Either the landlord or the tenant can decide to end the tenancy by giving the other party notice, either 30 days or one month before the due date of the next rent payment, whichever is longer. In this type of agreement, the rent can change according to the same terms (either 30 days or one month before the due date of the next rent payment, whichever is longer). "

anyways, the court system in MA highly favors tenants over landlords. I would not sign that agreement you said, as 90 days is way too much time to give a notice of leaving. 30 day notice is more than enough. If you moved out 1 day into a new lease, the MA courts would not make you pay a year worth of rent. 2-3 months worth yes.... a year, No.

*edit*

also, here http://www.mass.gov/?pageID=cagosubt...t+Law&sid=Cago

[Ddz]

Most landlords require a 30-day notice...wtf @ 90 days? I like leases because it locks you into the rate for the term and they can't jack up your rent price, but I've honestly never even heard of a year-to-year lease term. Usually there is one lease term of 6 months to 1 year and then it goes month to month. I wouldn't sign it unless you have no intention of moving.

[archibaldcrane]

That's extremely common for leases near campus in Madison - they don't want a bunch of vacant houses during the summer when kids go home, and want plenty of time to get their place on the market for the next round of students. Many places would ask in January or February if you were planning on re-upping for the next year (starting in August).

If it's not a comfortable situation for you, and you can't get him to change it, don't sign it, but I don't think that legally there is anything wrong with these terms, restrictive as they might be.

[SwampdonkeyPLD]

The 2nd provision you highlight simply restates what a court would require you to do if all this were to go to trial, assuming the landlord did what he could to fill the vacancy. It's not a big deal.

[Callisto]

Pretty much, and the way housing is at the moment 3 months' notice for a landlord to find a new tenant is actually not totally unreasonable. If the term is an issue either way request they make it for 6-month increments instead with maybe a 45-60 day notice window. Not sure how most people look for new places but I certainly know if I'm going to make a move more than 45 days before I do it, it'd take me at least that long to find a place I like and work out all the details on the new lease/move.

[MisterBob]

The 90 day notice is actually super common in MA (every place I've ever leased has had that clause), and it makes sense. It really sucks for a landlord or company to have a tenant move out at the last possible second. You lose a lot of money while waiting for that room to fill.