In the previous article I mentioned a “rental agreement” and a “lease,” what’s the difference between the two? The difference is with the length of the agreement. If the period of rental is “short,” often less than thirty days, then you would use a written rental agreement. If the period is longer, then it is considered a lease. The two are structured slightly differently (rental agreements automatically renew, leases do not) but that’s the basic difference from a practical perspective.
Why would this matter? In the case of month-to-month rentals, the landlord can change the terms of the contract with written notice every month that the agreement is renewed (generally states require 30 days of written notice, but it can be shorter depending on how often rent is paid or what the two parties agree to).
The lease is much different because of its length. With a lease and a set rental period of six months or a year, the landlord can’t change the terms and a tenant can’t terminate it until the lease expires. At the end of the rental period, the lease will expire unless renegotiated and renewed. Unlike rental agreements, there is no automatic renewal.
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I live in Oregon and signed a 6 month lease/rental agreement in July 2007 that stipulates:
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2. Term. In the even the Tenant desires to terminate this Lease on a date prior to the ending date set forth avove, Tenant shall: (1) first serve upon the Landlord a 30-Day written notice of Intent to Terminate the Tenancy….
13. Termination of Tenancy. If this Rental Agreement consists of a lease, then a) this agreement shall terminate on the termiantion date listed above, and (b) unless another agreement is signed by the parties hereto, or unless written notice of termination is given by either party thirty (30) days before expiration of this Rental Agreement, theis Rental Agreement shall be automatically renewed on a month-to-month basis. Upon creation of a month-to-month tenancy, both parties may terminate the tenancy upon 30 days written notice to the other, and tenant shall remain responsible for all rend during any such 30 day period.
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One month prior to the lease expiration, I received two written notices (signed by “The Management” and affixed to my front door) asking me to inform them of my intention to renew/vacate BY TELEPHONE. I did so on three occassions, the first two of which were 30 days prior to lease expiration. During both phone conversations, the leasing agent accepted my notification of intent to vacate, and made no reference to the written notification requirement. Upon scheduling my move-out walk through, 3 days prior to lease expiration, I was notified they would charge me one additional month’s rent because I had failed to notify them — in writing — of my intent to vacate the premises 30 days in advance of lease expiration.
It is my belief that a month-to-month tenancy was never created as I surrendered the property in advance of lease expiration (and they accepted my keys). Section 2 of the agreement clearly stipulates the 30 day written notice of intent to terminate the tenacy is only required “in the event the Tenant desires to terminate this Lease on a date prior to the ending date set forth above…” I did not terminate the lease early, and no month-to-month tenancy was ever created.
If there was a written 30 days notice required, I believed they waived that requirement when they notified me (in writing) to communicate my intentions via telephone, which I did.
Now they have turned it over to a collections agent who is suing me for $750 in small claims court.
Should I risk it in arbitration?
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