Students Learn Life Lessons From Leases

Students like senior business major Christie Ulman say they look to apartments and houses for advantages including having their own rooms and parking spaces. "I'm ready to live more as an independent person," Ulman said.

But with the increased freedom comes greater responsibility.

"There is risk involved because you put down a lot of money," Ulman said.

Before moving in the couch and the neon signs, prospective renters must examine and sign a lease outlining rules such as length of tenancy, rent payment dates, late fees, pets and tenant responsibilities.

"Our landlord ... sat down and read (the lease) over with us," Ulman said. "It was legal jargon, but she acted as a translator."

In addition to these guidelines, N.C. law also contains regulations concerning the rights and responsibilities of tenants and landlords.

According to N.C. General Statute 42-42, a landlord -- which is any property owner, management company or rental agency -- must maintain a fit and safe premise.

Landlords are responsible for supplying operable smoke detectors and for making prompt electrical, plumbing and ventilation repairs, provided that requests are submitted in writing.

According to the N.C. Fair Housing Center Web site, there are several steps tenants can take in response to negligent landlords.

For example, the site states that renters have the right to "complain to appropriate government agencies, such as local building and health departments," which might fine landlords.

Tenants who have adhered to the law and terms of the rental agreement cannot legally withhold rent payments, but they do "have the right to move out of the dwelling ... thereby ending (the) rental agreement."

But landlords are not the only parties with legal obligations.

General Statute 42-43 dictates that the responsibilities of tenants are to keep premises clean and to abide by building and housing codes and lease obligations.

Renters also are required to pay a security deposit upfront, usually equal to one month's rent. This money can be applied by the landlord to areas like unpaid rent or property damages outside of normal wear and tear.

A landlord is required by law to provide the tenant with the name of the bank or institution that holds the security deposit.

Dennis Hobbs, a Raleigh-based real-estate broker, suggested that renters make an inspection list of the property before moving in to ensure they are not held responsible for pre-existing conditions. "Buy a camera and take pictures when you move in and when you leave," Hobbs said. "There's absolutely no way a rental company should keep part of a deposit on normal wear and tear."

N.C. law also mandates that a landlord itemize any unusual damages and supply the tenant with a copy, along with the remaining security deposit, no more than 30 days after the lease termination.

A separate deposit is usually required if pets are allowed on rental properties. Hobbs said the landlord will collect a pet deposit upfront to ensure against damages.

"Typically, pets are going to do something, so students need to be cognizant of the fact that (pet deposits) are typically not returned," he said.

Hobbs said one of the points of rental negotiations most often contested by students is the length of occupancy.

Landlords typically look for year-long leases to prevent vacancies.

"I want anywhere from 12 to 24 months to protect my position," Hobbs said. "It's very hard for me to fill in the summertime."

But 12-month leases can be inconvenient for students, because they often have plans for summer jobs, internships or studying abroad that prevent them from living in the area year-round.

Subleasing, which allows tenants to rent out their rented space, is one solution to this problem. Though it requires approval of the landlord, the original signers of the lease are held responsible for rent payments and property damage. Essentially, tenants become landlords to their subtenants.

Because there are so many complicating factors involved in the rental process, Hobbs urges tenants to familiarize themselves with all terms of their renting agreements.

"Read it very carefully. Get your parents to read it very carefully. Maybe get an attorney," Hobbs said. "Watch out for lease terminology, what the rent is and what the landlord expects of you. That should be spelled out."

For students needing help in the leasing process, UNC provides lawyers through Student Legal Services, who are available to interpret the intricacies of rental agreements.

Dottie Bernholz, Student Legal Services director, suggested bringing a lease to her office for assessment before signing. Lawyers there can advise students on lease obligations and preventative measures to avoid legal problems.

"I'd much rather see a student before they sign a lease and answer questions before they're bound to a lease," she said.

Hobbs said every detail in a lease is important. Paying attention to a lease's start and end dates and the spelling of names can prevent legal disputes.

"You don't want a landlord to take advantage of a situation," he said. "It's almost like leasing to a wrong person. If it got down to serious litigation, that does get important."

Despite the technicalities involved in leasing, Ulman said the process has been a beneficial learning opportunity.

"It's a good experience to learn how to figure out a lease, pay bills, get an Internet connection while we're still in a safe environment," Ulman said. "This is kind of a trial run before we graduate into the real world."

The Features Editor can be reached at features@unc.edu.