Tenancy works best when both renters and landlords understand their roles, rights, and obligations. Learn everything there is to know about tenancy with this post that Delta South Title, Inc. in Mobile, AL has put together for you.
If you’re a homeowner, you have various options of what to do with your property. One of them is becoming a landlord and leasing out your investment. It can be a great source of additional income. However, to have a successful endeavor, you should understand how tenancy works. A well-informed agreement can prevent misunderstandings, protect legal rights, and foster a smooth, respectful landlord-tenant relationship.
Here’s a breakdown of the key components of tenancy, including lease types, rights, responsibilities, and common issues both sides should be aware of.
At its core, a tenancy is a legal agreement where a landlord allows a tenant to occupy property in exchange for rent. This agreement can be formalized through a written lease or, in some cases, established verbally (though this is not recommended).
The terms of the tenancy govern everything from rent payments and maintenance to how the lease can be terminated.
This is the most common arrangement, typically lasting 6 to 12 months. The lease outlines the start and end dates, rent amount, and other terms. Rent cannot be raised during the term unless agreed upon.
In this flexible option, the agreement continues indefinitely until either party provides written notice (usually 30 days). Rent can be adjusted with proper notice, and tenants or landlords can terminate more easily.
This informal arrangement has no specific end date and can be ended at any time, typically with reasonable notice. These are less common and riskier for both parties due to the lack of structure.
When both parties know what their rights and obligations are, it’s more likely that they’ll have an effective and smooth tenancy relationship.
Most landlords require a security deposit, usually equal to one month’s rent. This protects against damage beyond normal wear and tear or unpaid rent. State laws regulate how much can be charged, how the money is held, and how quickly it must be returned after move-out (often within 30 days).
Tip: Tenants should take photos at move-in and move-out to document the property’s condition.
Landlords can raise rent:
In month-to-month situations, increases are more flexible but still require written notice. Tenants should ask for renewal terms well before a lease expires to avoid last-minute surprises.
Evictions happen when a tenant breaks lease terms—most commonly by failing to pay rent, damaging property, or violating other terms. Landlords must follow local laws, which often require:
Tenants also have rights during this process and can contest an unlawful eviction attempt.
Both parties have responsibilities when ending a tenancy:
Tenants must:
Landlords must: