Southampton - One thing that it means is that you are in a contractual relationship with a tenant, and each of you has rights and responsibilities with respect to the other.

The contract that spells out those rights and responsibilities is the lease, oral or written.

Rent is due in arrears, at the end of the month. (freshome.com)

A common misconception is that a lease must be in writing to be enforceable.

While it is true that a written lease is easier to enforce, it is not true that absent a written lease, neither the landlord nor the tenant has any or rights or obligations.

In New York, an oral lease for one year or less is a legally binding contract.

Another misconception is when the rent is due. Under New York law, rent is due in arrears, at the end of the month. If the landlord wants payment at the beginning of the month, or any other time for that matter, the lease must say so.

On the other hand, the tenant's responsibility for the payment of rent is for the full period of the lease, not the period that the tenant remains in occupancy. In other words, if the tenant wishes to vacate before the expiration date of the lease, the tenant may still be held responsible for the rent until the lease's expiration unless the landlord agrees otherwise.

Since the lease should state its full term, January 1, 2010, to December 31, 2010, for instance, the tenant's rent should also be stated for the full term, $12,000 rather than $1,000 a month.

Assumptions regarding subleasing and assignment are also often erroneous. Under New York law, in a fair-market rental, if the landlord wants to prevent a sublet by the tenant to another individual, the lease must state that; if the building is four or more units, the landlord may not unreasonably withhold consent. n such a case, a court may require the landlord to permit the sublet.

Under the same law, if a landlord of a building of four or more units unreasonably withholds consent to an assignment of the lease to another individual, the court may terminate the lease, relieving the tenant of any further obligation to the landlord.

A lease survives a transfer of ownership of the building to another owner, unless the tenant has agreed to a termination of the lease in such circumstances. In fact, the lease also survives the death of the landlord as well as the tenant. If it is the landlord who dies, the new owners must honor the terms of the lease. If it is the tenant who dies, the estate of the deceased tenant is responsible, but the estate must be permitted to assign the lease and the landlord may not unreasonably withhold consent.

Leases and their enforcement are matters for professional counsel. (blogs.trb.com)

A lease begins and ends on the dates stated in the lease. If a tenant remains in occupancy after the expiration of the lease without the landlord's permission, that person becomes a holdover tenant and is not only subject to ejection by a court, but also double rent for the period that the tenant has unlawfully remained in occupancy. Under these circumstances, the landlord may also enter into a new lease with the tenant or permit the tenant to remain in occupancy on a month-to-month basis at the old rent. In order to terminate this type of tenancy once it is entered into, the party who wishes to terminate must give the other party at least 30 days notice.

New York State Law also permits the landlord to require a security deposit from the tenant. This money belongs to the tenant, and must be held in escrow for the tenant in a NY State federally insured bank account. If the building is more than five units, the money must be held in an interest bearing NY State federally insured bank account and all but up to one percent of any interest earned belongs to the tenant. These funds are intended to compensate the landlord for any damage caused by the tenant to the landlord's property, other than normal wear and tear. If a tenant does not receive the funds to which the tenant feels they are entitled, they may take the landlord to court, or file a complaint with the NY State Attorney General's Office.

Leases and their enforcement are matters for professional counsel. Neither a landlord nor a tenant should attempt to take the law into their own hands. The consequences can be very costly.