What makes a rental lease invalid?

If you own some property that you are thinking of renting out, you may have wondered if you should buy a standardized lease, make a lease yourself, or absorb the expense of hiring an attorney. Before you make your decision, you should be aware that there are some things that can make a lease invalid and that what makes a lease legitimate may depend upon the state in which you reside. 

Voided Leases

There are certain leases that the court will rule as void. This basically means that the lease is unenforceable.

There are some leases that are voidable for obvious reasons. A lease may be voided if it specifically states that the premises will be used for illegal activity such as a brothel. It can also be voided if one of the parties was mentally incompetent. A lease may also be null and void if it somehow violated federal anti-discrimination laws. For example, if a landlord rented property under the condition that no atheists or people of a certain ethnicity were allowed on the premises, it would be considered void. 

Fraudulent leases are void as well. If one party was misled by another party, the lease might not be valid. For example, if a person rented out an apartment to live in and used it as a meth lab, you could void the lease. 

If a person rents out an apartment in a building that they do not own or that has been condemned, the lease would be considered void. 

A lease should never say that you must relinquish your security deposit. It should not require you to sign an agreement stating that you will never sue the landlord for any reason.

There may be some situations in which a lease may be considered to have been signed under duress. This may be hard to prove in many cases. It is also considered voidable if one of the parties committed fraud. Be sure to validate ID cards and do background checks before you rent to anyone. 

Invalid Leases By State

Every state insists that a lease is in writing to be considered valid. They must also specify a time period and a rental rate. 

Each state has its own laws that may render a lease invalid. In California, the law specifies that a landlord must not require tenants to pay rent in cash. In New York, property owners are forbidden from requiring tenants to make electronic payments.

Arkansas is a great place to be a landlord. You do not even have to prove that an apartment is habitable to charge rent. The lease will never be considered invalid if the pipes break or the roof blows off. 

Almost all states require that you give a tenant a certain amount of time to cure if they miss a rent payment. For example, the state of Ohio requires a landlord to wait 30 days to evict. Right nearby in West Virginia, a landlord can evict a tenant immediately with no notice.

Using a generic lease form is always a bad idea when renting out a property because there are different laws in different states. There are companies online that will allow you to specify the terms of your lease to the laws of the state that the property is in. You can read more about lease agreements here.

Having a rental property can be quite lucrative. A well-written lease can make everything go smoothly.