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Written
& Verbal Agreements
Written Agreements
Verbal Agreements
Written
Agreements
A
residential lease is often a written agreement that defines the rights and
duties of both the landlord and the tenant. Like any other
contract, the parties in a lease both promise to do things for one another. The
lease obligates the landlord just like it does the tenant, and the landlord can
be taken to court if the terms are not abided by. So read your lease carefully.
And always ask yourself: "Which rules and regulations bind me and
which rules and regulations bind my landlord.
What Should Be
in a Written Lease (GA)
Basic requirements, including those required by
GA law.
Lease Termination and Renewal
(GA)
FAQ's on penalties for early termination, required notice to leave, the
landlord's right to enter, roommates, pets, renewals and your rights when the
landlord accepts rent payments after the end of your written lease. Scroll down
to end and go to the next page-3 pages of FAQs.
Breaking My Lease-Can The
La ndlord Make Me Pay For The Whole Lease Term? (Consumer-SOS)
Yes, No and Maybe. (But never the full amount if the landlord has a replacement
tenant.) Separate rules may apply to regarding
military deployment and victims of domestic violence.
GA Commercial Leases That Automatically Renew-Are They
Enforceable? (Consumer-SOS)
Perhaps not!
Landlord Tenant Help For Military Personnel
(Georgia Google Search)
Includes both federal and state protections for
breaking a service contract, rental agreement and debt relief.
Georgia Courts Guide to the Servicemembers Civil Relief Act (SCRA)
(2019)
Provide the judges of Georgia with information and GA case law on
the Servicemembers Civil Relief Act. The table of contents refers to leases
and mortgages. Or, to see every situation, do a separate single word search
in the document for
lease or
landlord.
Verbal
Agreements
You
have a verbal rental agreement whenever you rent without a written lease.
In
most cases, verbal and written agreements are equally valid and equally binding.
In
other words, both you or the landlord can sue when the other person has breached
their obligations.
But there are major differences too. Many states have special laws that apply exclusively to verbal contracts. These laws are not negotiable, which means they bind both you and your landlord, whether or not the terms were agreed upon.
In Georgia for example, the landlord must give the tenant a full 60 days notice before ending the rental agreement. This law is not up for discussion or debate. The landlord must give the tenant the full 60 days even when both of them had previously agreed to a mere 30 days.
Another major difference involves the duration of verbal agreements. Most states will hold that a verbal contract to rent for more than a year is null and void. When a contact is null and void, either party can walk away without penalty.
How Much Notice
Must You or The Landlord Give To Move Out When The Agreement Does Not Have an
End Date Or A Specific Time When It Will End? (Consumer-SOS)
Includes
the notice for people who pay rent month to month and
week to week and
for both oral and written
leases along with how to tell if you're a tenant
or a boarder.
Landlord Tenant Help For Military Personnel
(Georgia Google Search)
Includes both federal and state protections for
breaking a service contract, rental agreement and debt relief.
Georgia Courts Guide to the Servicemembers Civil Relief Act (SCRA)
(2019)
Provide the judges of Georgia with information and GA case law on
the Servicemembers Civil Relief Act. The table of contents refers to leases
and mortgages. Or, to see every situation, do a separate single word search
in the document for
lease or
landlord.
Where To Get GA Legal Help Or Government Assistance (Consumer-SOS)
Evicting A Houseguest (Consumer-SOS)
What to do when your guest won't leave.
Collecting Your Deposit When You Leave But Your Roommate Remains (GA-Consumer-SOS)
Help Resources In Atlanta
(Consumer-SOS)
How to deal
with housing code problems, discrimination, roommates, late rent and lack of
money, finding an apartment,
transportation, health & safety and more.
Roommates & You
(Google)
Very well organized discussion of issues in selecting and living with a
roommate from paying the rent, to quiet hours, to where you'll leave
phone messages.
The Talk All Roommates Must Have: Topics To Discuss (Google)
Learn the essential things you need to ask someone
or consider before you choose to room
with them.
Reverse
Lookups-Finding The Name & Address When You Only Have The
Phone #
Strange # on your phone bill? Find out who it belongs to.
Making Rental Payments
With Roommates (Google)
Tips to protect your tenant/credit record when sharing lease
responsibilities with roommates.
Where
To Go For More Help
Evicting An Unwanted Houseguest (See GA Case Law Below
Who's A
House Guest & Not A Tenant (Consumer-SOS-GA)
So, you let a friend who was out of work stay
in your apartment. Now after days, weeks or months,
she won't leave, though you've told her she must. Frantic, you ask a
cop friend of yours what to do and he tells you must formally evict her. BUT Watchout!!!
When it comes to evicting house guests in Georgia, it's all or nothing. If the guest is a true house guest, it can be easy to get them out. But if they have acquired the status of a tenant at will – and it doesn't take much – eviction requires a trip to court.
So if it's a clear cut case, such as the person has been there only a few days and was told to leave, just call the police. Do not resort to the formal eviction process.
But for longer stays, it gets a lot more complicated. In Georgia, a true house guest is one who came in as a guest, where it was never intended they compensate their host (and they didn't compensate) by kicking in money or performing services. Yes, a guest can convert to a tenant based on various things such as being assgined house chores, receiving a housekey, paying for food and expenses or even changing their mailing address to yours. A guest can also morph into a tenant when they provide other services or pay part of the utilities. This means you may be stuck with evicting them after all (assuming they don't leave after you threaten to call the cops).
Note that eviction is a legal process reserved only for tenants. But once you start the process, you must do it right! During this time, you as "landlord" are legally forbidden to change the locks, remove the tenants things, etc.
Steps To Take To Get Rid Of an Unwanted Guest
Do not allow the guest to forward mail to your address. Have them forward it to a PO box or to a friend of yours who lives nearby.
Under landlord tenant law, it's harder to remove a guest if it appears that
you agreed to let the person live with you indefinitely.
If Possible, Do not give them the house key. Good for legal reasons and
reminds them they are guests.
Do not accept rent money from the
guest. Be careful about texting a list of chores or services that seem to be
a requirement for them staying there! This too could convert them to a
tenant! The police are less likely to remove him when it appears he's a
tenant. Also, when you accept rent from a guest, such may convert him into
your tenant and the landlord's subtenant. Down the road this
can cause legal complications for both you and your landlord.
Never for any reason cash their checks
in your bank account. It can be claimed later you kept the money for
rent. Instead direct them to a check cashing place. If you feel bad about
it, reimburse them for the check cashing fee.
Tell your guest a specific date
when you want him to leave the premises. If your gut tells you there may be
a problem, follow up in writing and keep a copy for your records. Make sure
your letter or text is firm and mentions the exact date of departure. For example,
telling her "I'd like you to leave" is not nearly as good as "You need to
leave by this date..." Note: your letter or text should restate that you
allowed the person to stay as a favor. Also, don't give a deadline
that is exactly 30 or 60 days away. These time limits are reserved for
tenants. Give them more or less as you see fit.
Restate your deadline a day or two
beforehand. Those afraid to confront can start with "So, after
tomorrow, where are you going from here....." or "Tomorrow, do you
need me to help you pack your things, call relatives and friends, etc..."
On the day of the deadline, bring a
trusted friend with you. This helps the unwanted guest know you're serious.
Your friend should be someone who will keep their cool if you have to call
the police.
So, they still won't leave? Call the
police and tell them the following "I have an unwanted
houseguest who refused to leave when ordered to. She never paid rent, never
never split household expenses, never was on the lease, and never got
permission from the landlord to stay. She also never had the house key. She was never anything more than
a houseguest and I allowed her to stay merely as a personal favor to her.
She is a trespasser and I need her removed right
now." When the police arrive tell them again what you
said on the phone. If necessary, show them a copy of the letter you wrote.
If they balk and tell you to file eviction papers, show them
the case law below.
So the Police Didn't Remove her?
Well then, have your landlord do so. Usually a subtenant must have the landlord's permission to
remain on the premises. So, while it may be debatable whether or not
you can remove him, the landlord can do so on a whim and at any time. See
Subleasing.
If your landlord won't remove her,
bring the cases below to the magistrate
judge so they can issue a trespassing warrant. Your other option is to get a
writ of
mandamus which is a legal order to compel the police or sheriff to do
their job. (In this case, doing their job means removing the trespasser). If
that doesn't work.
Hire an attorney or fill out eviction
papers and take the risk.
See also
Another GA Attorney's Thoughts on Removing A Houseguest
GA Law on Who's a Tenant VS House Guest
Guest vs.
Tenant under Georgia Law
A non legalese summary of what can make a
guest a tenant.
Modern case law states that someone can be a tenant even if they don't pay rent but provide services. However, if the "tenant" is really just a houseguest, you may be able to remove them at a moment's notice and thus avoid the formal eviction process. But the law is not clear on the matter. So be careful!
CASES BELOW ARE FACT INTENSIVE and PROVIDE MURKY GUIDEANCE
The case most on point is Williams v. State, 261 Ga. App. 511, 513, 583 SE2d 172 (2003). Williams, involved someone who lived in a shed on his step dad's property. Williams was never given a key to the shed, never paid rent and was allowed to stay only if he had a job. When he lost his job, his stepfather had him removed without resorting to the eviction process. This case went to criminal court when Williams made violent threats to both his step dad and the arresting officer. The jury found Williams guilty of criminal trespass, felony obstruction, and simple assault.
While the court ultimately overturned William's jury conviction on most of the criminal charges, it also addressed whether he could be guilty of criminal trespass since Williams claimed he was a tenant. The court acknowledged that there was sufficent evidence for the conviction because Williams was more of a guest than a tenant; therefore unlike a tenant, he had no right to stay when told to leave. The court conlcuded:
Other Cases That Determine if Someone is a Houseguest and Nothing more than a
Houseguest.
The following cases involve houseguests who sued their hosts after they were
hurt on the host's property. Although these are not landlord tenant cases, they
lay out specifically whether someone is a guest or more than a guest. In both
cases, the individuals stayed overnight or longer. However, they were found to
be nothing more than social guests.
The GA Courts Deemed Them To Be Guests and Not Tenants Because They:
Never paid rent;
Never shared household expenses or household chores; and
Were being allowed to stay merely as a personal favor.
Ellis v. Hadnott 282 Ga. App. 584, 639 S.E.2d 559 (2006)
Person allowed to stay at the owner's house as a favor to the ower's friend
was nothing more than a houseguest when it was clear he paid no rent, nor
helped with any household bills, nor performed any household chores. Key was
that his staying at the residence was of no
benefit to the owner.
Robinson v. Turner 297 S.E.2d
522, 164 Ga.App 515 (1982)
Person who stayed at someone's house for a time period while
her mother recovered from surgery, was a mere social guest when he paid no rent,
shared no household expenses, and was being allowed to stay there only as a
favor.
Riley v. Brasunas 438 S.E.2d 113,
210 Ga.App. 865 (1993).
The fact that someone from out
of town was invited to stay overnight or longer in a person's private residence
does not make them a tenant or invitee. A social guest in a person's
private home is a bare licensee, even though he was expressly invited to be
there.
A landlord's tenant, for
example, would be an invitee (see
Gaydos v. Grupe Real Estate Investors,
211 Ga. App. 811, 812 (440 SE2d 545) (1994)), whereas a
social guest in one's home is a mere
licensee (Knisely v. Gasser, 198 Ga. App. 795, 797-798 (2) (403 SE2d 85) (1991)).
But See Contrary Case below (Argue the facts below less like yours than the cases above.
McCullough v. Reyes, 287 App. 483, 651 SE2d 810 (2007)
To decide insurance
liability in a wrongful death case, the court first analyzed if the insured
was a landlord. The court found he was a landlord (but not liable for the
tenant's negligence as he was not in
possession of the premises.)
As cited in the
The 2016 State Court Bench
book: The GA Appeals Court found the existence of a landlord-tenant
relationship between landowner and sister occupant where there was no
written lease, no rent paid, the landowner retained the key, stored personal
property there, and lived in adjacent structure on same property.
But also important in that case was that the sister provided care for the ailing father in exchange for a place for her family to live. In other words the court found that the property owner received a benefit from her living there.
How To Talk to The Judge
Remember: You're a lay person and the judge may
not even know all the cases you're referring to. Be humble. Don't come off
as a "know it all." Tell the judge "Your honor, I
am definitely not a lawyer and have no legal training. But these cases may
shed some light on my situation. I am hoping that you will look at them. In
essence they seem to say that he's more of a houseguest than a tenant and
that the formal eviction process may not be appropriate here.
About
McCullough v. Reyes, 287 App. 483, 651 SE2d 810 (2007)
Since this case is cited in the 2016 GA State
Court Benchbook for Judges, you can't ignore it. And the judge will be
impressed you knew of it and were honest enough to bring up law contrary
to your case. So instead of ignoring it, show how it doesn't apply to
you. Make it easy for the judge to define and distinguish it from your
situation, without having to overrule it.
"Yes Your Honor, the Court found the existence of a landlord-tenant relationship between landowner and sister occupant where there was no written lease, no rent paid, the landowner retained the key, stored personal property there, and lived in adjacent structure on same property.
However, also important in the court's decision was that the sister provided care for the ailing father in exchange for a place for her family to live. In other words unlike in my situation, the court found the property owner received a real benefit from her living there.
Also, unlike Robinson v. State, this case did not deal with whether the person was a tenant or not and how to remove them from the property. It's about insurance coverage and wrongful death.
The cases seem to turn on very specific facts. I believe these other cases are much closer to my situation, still good law and have not been overulled."
(name the cases above in your favor and how your facts are closer to theirs).
Other
State's Laws on When a Guest Becomes A Tenant
Some states have much
more clearcut standards than Georgia!
Moving
Out
How Much Notice
Must You or The Landlord Give To Move Out When The Agreement Does Not Mention an
End Date Or A Specific Time When It Will End? (Consumer-SOS)
Includes
the notice for people who pay rent month to month and
week to week and
for both oral and written
leases along with how to tell if you're a tenant
or a boarder.
Lease Termination and Renewal
(GA)
FAQ's on penalties for early termination, required notice to leave, the
landlord's right to enter, roommates, pets, renewals and your rights when the
landlord accepts rent payments after the end of your written lease.
Leases That Automatically
Renew-Are They Enforceable? (Consumer-SOS)
Perhaps not in Georgia!
Breaking My Lease-Can The
Landlord Make Me Pay For The Whole Lease Term? (Consumer-SOS)
Yes, No and Maybe. (But never the full amount if the landlord has a
replacement tenant.) Special exceptions for the
domestic violence victims and people in the military. See also, can the landlord enforce a Georgia Rent
Acceleration Clause? (make ex-tenant pay remaining lease term all at once
rather than once every month.)
Tenant's Right To Break A Rental Lease in Georgia
Explains when
breaking a lease is legally justified and how to minimize your exposure when
you have to leave regardless.
Legally Breaking Your Lease In GA
Questions and answers from Georgia
legal aid. Does not include your rights in domestic colence cases.
Domestic Violence Victims Can Break GA Leases with 30 day's Notice
(OCGA
44-7-23)
New 2018 law allows such after
issuance of civil family violence
order or criminal family violence order.
Landlord Tenant Help For Military Personnel
(Georgia Google Search)
Includes both federal and state protections for
breaking a service contract, rental agreement and debt relief.
Georgia Courts Guide to the Servicemembers Civil Relief Act (SCRA)
(2019)
Provide the judges of Georgia with information and GA case law on
the Servicemembers Civil Relief Act. The table of contents refers to leases
and mortgages. Or, to see every situation, do a separate single word search
in the document for lease or
landlord.
Uninhabitable
Premises/Constructive Eviction (Consumer-SOS)
Has your landlord breached Georgia repair obligations
and made your apartment unlivable? (must be
very serious to justify breaking the lease.)
Security Deposits (Consumer-SOS)
Military Clause: Terminate Your Lease Due to Deployment or PCS
Service members
are protected by the Servicemembers Civil Relief Act if they need to break
their lease on account of a deployment or permanent change of station.
How Much Notice Must You or The Landlord Give When
There's A Written or Verbal Lease For No Specific Time Period.
It all depends on whether you are a boarder or a tenant.
Boarders have almost no rights, but tenants have plenty. If you are living
in a hotel or certified boarding house, you are probably a boarder. If you are
paying rent to a person and live in their house, you are probably a tenant. For
more read below!
What if I Pay Rent
Month To Month?
If you pay rent
month to month, and do not live in a hotel or licensed boarding house,
you are almost certainly a tenant. In such situations, the
landlord must
give you 60 days notice to leave. And you must
give them 30 days. Exceptions may include
failure to pay rent or when you commit illegal acts on the premises.
As a full fledged tenant, the owner cannot just kick you out and change the locks. They must resort to the eviction process and that means court.
What if I Pay Rent
Week To Week?
This is where it gets a
little tricky. You could be a full fledged tenant with all the rights of a
tenant. This means the landlord must give 60 days notice for you to leave.
And you must give them 30 days. Or you could be a boarder with almost no
rights.
Boarders
You are probably a boarder if you're living in a hotel, inn, or boarding
house and
they have a business license to allow people temporary
lodging there. See p.7 of the GA Landlord Tenant Handbook for
The Difference Between A Tenant and a Boarder.
It's not a bright line test. But if they're changing your linens, you pay "rent" daily or weekly, and they provide hotel like services, chances are you're probably a boarder. However, if you simply live in the same house as someone and are paying them week to week, you're probably a tenant.
Legal Rights of Boarders
Unlike
a tenant, if there's good cause to remove a boarder (i.e. overdue bills or
rule violations) such can be done WITHOUT NOTICE and
without resorting to the judical process.
For example, hotels,
inns, and boarding houses are not required to file a dispossessory. (see
OCGA 43-21-3.1)
Likewise, even if the boarder follows all the rules and is in good stead, they can be asked to leave with almost no notice.
"If the hotel or boarding house owner wants a resident to move, he need only give notice equal to the time for which the occupancy is paid. For example if payment is made weekly, one-week notice to vacate is all that would be required." See p.7 of The Georgia Landlord Tenant Handbook.
Tenants
But
if you pay week to week and you rent a room in someone's
house that's not a bed & breakfast, you're almost certainly a tenant
(even if the owner says
otherwise!) You don't lose your rights simply because you're paying week to
week.
And this means the 60 day, 30 day rule for notice still applies! So if you're a tenant, you pay weekly, and your lease agreement (written or verbal) has no stated end date, you still have a tenancy at will. And a tenancy at will has the same notice requirements whether you pay rent once a month or once a week.
But what about if I signed a written lease where I would pay rent week to week and the landlord reserved the right to give me only 7 days notice.
Can he end the lease in just 7 days?
Answer: No. If you're a tenant, you're a tenant. And if it's a tenancy at will, the same notice always applies. So when a tenant enters into an agreement where there's no date or time period for when the lease will end, the landlord must still give you a full 60 days notice, EVEN WHEN THE LEASE SAYS OTHERWISE.
The issue is always whether you're a boarder or a tenant. And if you're a tenant, you always have a tenancy at will when there's no end date to the landlord tenant arrangement. So the 60 day, 30 day notice requirements still apply.
GA Statutes And Case Law
On Tenancy At Will Arragements
Where no time is specified
for the termination of a tenancy, the law construes it to be a tenancy at will.
See OCGA
44-7-06
To terminate a tenancy at will, the landlord is required to give the tenant 60 days notice. See GU v. LIU, 262 Ga. App. 443, 585 S.E.2d 740 (2003) (agreement to rent real property that did not specify date for termination was tenancy at will under Georgia law).
Case law
where Person Not A Boarder But Paid Rent Week To Week
Fact that bedroom and bath were rented furnished in a building containing other
rooms and the term was on a week-to-week basis does not affirmatively
show that landlord-tenant relationship alleged by plaintiff did not exist, so as
to change the duty owed by the defendant to the plaintiff from that of landlord
to tenant to innkeeper and guest.
Garner v. La Marr, 88 Ga. App. 364, 76
S.E.2d 721 (1953).
Back
To Top
Breaking My Lease-Can The Landlord Make Me
Pay For The Whole Lease Term?
GA
Exceptions When You Can Legally Break a Lease Without Penalty
In
Georgia, legally breaking a lease is permissible if the tenant or landlord
meets one of several qualifying conditions.
What If I Break
My GA Lease and There Are No Legal Exceptions?
In some states, the
tenant cannot be charged the full amount of the remaining rent, unless the
landlord first tried to find a replacement tenant. This is called mitgating
the damages. But in GA there is no
such requirement unless the landord "accepts the tenant's surrender."
If the landlord has found a replacement tenant, you may be liable for no rent, or the difference between what the landlord is collecting versus what they would have gotten from you. But the landlord cannot collect anything more if he is getting the same or more from the replacement tenant. This excludes keeping your security deposit or making you pay a penalty, if such is in the lease. We're just talking rent here. See also Can The Landlord Make Me Pay Remaining Rent in a big lump sum instead of month to month?
The landlord's Duty To Mitigate (Must They Try To Re Rent Or Can They Stick You With Paying For The Rest of The Lease Term?)
It depends. GA courts make a distinction between when the tenant abandons the premises versus if the landlord accepts surrender of the premises. In the former there is no duty to find a replacement tenant. In the latter there is a duty. If there is a duty, the landlord can be faulted for not trying "to mitigate the damages" and you may be off the hook.
Accepting surrender means more than the landlord accepting the keys. It means retaking the property and using it in a way inconsistent with the tenant's right of occupation. For example, the landlord is using it for storage, or it's being re-rented or for the benefit of the landlord's family. See Circle K Stores v. TOH ASSOCIATES, LTD., 734 SE 2d 752 (2012)(citing other cases where landlord surrendered premises based on conduct).
If it turns out
that the landlord "accepted surrender", (suddenly decided to use it for
storage, had his family move in rent free, etc.) it could be their right to
collect rent from you was cut off then and there. Even if a new tenant never
moves in.
HOWEVER, as mentioned above, none of these
differences matter much when the landlord has already found a replacement
tenant.
GA Statutes and Case Law
Under
OCGA 13-6-5,
the landlord does not have to attempt to rent out property when the tenant
abandons it without being evicted. The landlord may allow property to remain
vacant and hold tenant liable for rent for the entire term
304 Ga.App. 348, 696 SE2d 391 (2010);
271 Ga.App. 397, 400(1),
609 SE2d 647 (2004).
NOTE: When the tenant abandons property, the landlord has no obligation to mitigate, but the landlord cannot force the tenant out. While the landlord need not mitigate damages and may reenter to preserve and repair property, if the landlord puts the property to its own use, then surrender has been accepted and if rented to new tenant, there is likely a duty to obtain a market rent [Compare 304 Ga.App. 348, 351, 696 SE2d 391 (2010) with 297 Ga.App. 104, 676 SE2d 728 (2009)].
Of course, the landlord may be wise to actively look for a new tenant. Especially if it looks like the ex- tenant is a dead beat and unlikely to pay anything. But if the landlord does in fact rent it out again, he cannot sue the ext tenant for full rent and also collect rent from someone else. That's double dipping.
The Landlord Has 3 Options, One Of Which is to Hold The Tenant Liable To The End Of The Lease Term. However, The Tenant may not have to pay The Entire Amount if:
The landlord retakes the premises, re-rents, etc. or
Ends the lease, or
Accepts the tenant's surrender either by using the premises for storage, or
In any other way inconsistent with the tenant's right of occupation.
Case Law On Landlord's Options When Tenant Wrongfully Breaks Lease
Landlord's possession of premises vacated by tenant does not
constitute acceptance of surrender or abandonment of premises by
tenant. Landlord has option of (1) terminating lease, (2) obtaining another
tenant while holding original tenant liable for any deficiency, or (3)
permitting premises to remain vacant while collecting rent from
original tenant. Lawson v. Crawford, 220 Ga. App. 447 (1996). Thus, landlord not
required to mitigate damages, i.e. rent losses, after tenant abandons
premises. Shaheen & Co. v. Dickson, 207 Ga. App. 328 (1993).
Generally, see Pindar, Ga. Real Estate Law and Procedure, § 11-37.
Mere failure to pay rent (after vacating premises) would not
necessarily constitute an abandonment and surrender of leasehold interest. Smiway,
Inc. v. DOT, 178 Ga. App. 414, 418 (1986). See also Dawkins, § 5-1;
Noble v. Bethlehem Housing Authority, 617 F. Supp. 248 (E.D. Penn,
1985).
Situations Where The Tenant May Not Have To Pay For The Full Lease Term But Only For Shortly After The Breach See Case Law Below:
Surrender must be accompanied by landlord's agreement on to retake
possession of premises or such circumstances as compel conclusion that
landlord consented to retake possession. Vaswani v. Wohletz, 196 Ga.
App. 676 (1990).
If tenant surrenders possession, and landlord takes possession or
exercises control over premises inconsistent with tenant's right of
occupation, lease canceled and tenant discharged from subsequent rent
liability. Vineyard-Village Georgia v. Crum, 136 Ga. App. 335 (1975).
Where landlord uses premises for storage while seeking replacement
tenant, original tenant not liable for rent during such usage. Lawson
v. Crawford, above. Georgia Landlord Tenant Law From A To Z With Georgia Case Law (Georgis State Court Benchbook) Back To Moving Out
Accelerated Rent Clauses
Where Lease Breaker Must Pay All Remaining Rent At Once
There's a
three part test the courts use to determine if the rent acceleration clause
is an illegal penalty or a valid liquidated damage provision. If the latter, the
lease clause is enforceable and you're stuck paying the remaining lease term
in a lump sum.
But showing the clause is an illegal penalty is just half the battle. You could still be liable for the remaining rent in the whole lease term, but simply not obligated to pay it all at once. So check out Breaking My Lease-Can The Landlord Make Me Pay For The Whole Lease Term? (Consumer-SOS)
Note:
All the case law on rent acceleration involves
commercial NOT residential tenants.
But
the GA State Court Benchbook cites the commercial tenant cases on rent
acceleration without distinguishing if the tenant is a business or a person.
In general, GA courts are more lenient on residential tenants. But at the
very least, they will have no less
protection than commercial tenants. (To see the law judges cite, search page
in link above using the word accelerated)
Accelerated Rent Clauses In Georgia-The Last Five Years (Google)
Find
the most recent articles on Georgia rent acceleration clauses.
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The
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Commercial Leases
That Automatically Renew-Are They enforceable If We Forgot Not To Renew?
(Landlords Scroll Down For Defenses)
I'm a commercial tenant with a lease that
automatically renews every year unless I give 60
days advance notice. I was supposed to give notice of ending the lease
on January 1st, but unfortunately I forgot, and told my landlord on January 15th
that I wouldn't renew. Now he says I'm stuck with the lease for
another year. Am I really locked into this because I missed their deadline
by two weeks?
The Short Answer
Probably not. Under Georgia law, all auto renewal contracts require
the mutual consent of both parties at or before the time of renewal. While no
Georgia cases refer to auto renewal terms in landlord/tenant leases, a lease is just another
type of contract. See Nowcom Corporation v.
Equifax Credit Information Services 2009 WL
3450255 (Cal.App. 2 Dist. applying Georgia law). So based on Nowcom and
Georgia Case law, you can't be held to pay for the
entire lease term that remains, for you never agreed to the automatic renewal.
With that in mind, you may be able to simply pay a month or two extra rent as
"reasonable notice" and part ways.
The Long Answer
Georgia law requires that both parties to a contract agree to the automatic
renewal of the contract, at or before the renewal term begins. So without a
mutual agreement, the non renewing party can't be forced to pay damages based on
the whole renewal term.
Williams v. AFLAC, Inc. (1993) 209 Ga.App. 841, 844 [434 S.E.2d 725, 729.
Instead the agreement is deemed a contract at will, where only reasonable notice
is required. See
Iraola & CIA, S.A. v. Kimberly-Clark Corp.,
325 F.3d 1274, 1280 (11th Cir.2003) Citing
Coffee v. General Motors Acceptance, 5 F.Supp.2d 1365 (S.D.Ga.1998)
(to hold that contracts of indefinite duration are generally terminable at will,
though contracts that specify default conditions are not.)
In the landlord tenant setting, an at will contract is called a "tenancy at will". In a tenancy at will, the tenant must give 30 days notice before ending the agreement. See OCGA 44-7-6; 44-7-7 So if the tenant fails to give 30 days notice, they should pay no more than 30 day's extra rent.
Supporting GA Case
Law
Georgia courts have long held against one sided
automatic renewals. For example: the courts have held that an employment
contract that automatically renewed at the end of a five year period was not
enforceable without mutual consent before the date of renewal.
Nikas v.
Hindley, 99 Ga.App. 194, 108 S.E.2d 98 (1959);
Likewise, in a self renewing attorney retainer agreement, the plaintiff could
not recover damages from the renewal provision because the parties did not
mutually assent to the renewal on or before the the renewal date.
Williams v. AFLAC, Inc. (1993) 209 Ga.App. 841, 844 [434 S.E.2d 725, 729]
["Applying the fundamental rules of construction to the terms of the automatic
renewal provision contained within the retainer agreement, [the plaintiff]
cannot recover damages based upon the renewal period because the parties did not
mutually assent to the renewal of the retainer agreement at or before the date
of the renewal"];
Dominy v. National Emergency Services, 215
Ga.App.
537, 538, 451 S.E.2d 472, 474 (1994) (partially overruled on other grounds in
AGA, LLC v. Rubin,
243 Ga.App. 772, 774 (2000).
However, the court may rule against you if you've acted in bad faith. For example: if six months past the renewal deadline you claim you never consented to the renewal or never signed the contract, be ready to show that your landlord knew of your dissent much earlier. If you just kept quiet about it, the court may find that by your actions, you really intended to renew.
A California Case That Is
Actually A Good Authority For Georgia Law
Ironically, it's a California case that affirms that all
contract renewals require mutual consent. See
Nowcom Corporation v. Equifax Credit Information Services
2009 WL 3450255 (Cal.App. 2 Dist.). Normally, a Georgia
court relies on its own precedent and not that of a sister state. But the Nowcom
case is different because in this case, the parties contractually agreed that Georgia law
would apply. So the case was decided under Georgia law.
In the Nowcom case, the plaintiff Nowcom paid Equifax
for the right to resell Equifax consumer credit reports directly to auto
dealers. In negotiations with Nowcom, Equifax was willing to sign an agreement that in
pertinent part, read as follows:
This agreement.. will continue for an initial term of one (1) year and shall automatically renew for for successive one (1) year periods unless terminated by either party in writing at least ninety (90) days in advance of the then current term.
But the lease the parties actually signed was far more restrictive. It did away with the 90 days notice above which allowed the contract to end for any reason (so long as the proper notice was given). Instead, the contract would auto renew year after year indefinitely. The only way out of of it would be if either party went bankrupt, insolvent or failed to cure a material breach.
So four years went by and the parties allowed the contract to renew for four consecutive one year terms. But in the fifth year, Equifax tried unsuccessfully to negotiate different pricing terms. After months of such negotiations, and just three weeks before the renewal period, Equifax told Nowcom that it was terminating the agreement. Nowcom sued and the court held in favor of Equifax because Equifax never agreed for it to renew.
Landlords!!!!! Here's How You Can
Distinguish Your Case From Nowcom and The GA Cases Cited Therein:
Even minor differences in your case can result in the court applying
different case law. So if you're a landlord, here are things to note to
persuade the court for a ruling in your favor.
Nowcom and cited cases do not involve a landlord
tenant agreement and are therefore not applicable. Those cases involve the
fiduciary relationship between a client and and attorney which gives the client
a special right to cancel. Or they deal with employment agreements which have
traditionally been treated differently than landlord tenant agreements.
Nowcom involved an agreement with an initial term
(one year) and had a provision for auto renewals (but our situation is
different). If your situation involves a
contract with no time limit and the agreement can only end if a specific default
event occurs, argue that your facts are more like those in
Coffee v. General Motors Acceptance Corp. 5 F.Supp.2d 1365 ((S.D.Ga.
1998). In Coffee, the Court held that while contracts of
indefinite duration are generally terminable at will, contracts that specify
default conditions are not.
Iraola & CIA, S.A. v. Kimberly-Clark Corp.,
325 F.3d 1274, 1280 (11th Cir.2003).
The Nowcom agreement was unfairly restrictive and
this is what the Court really took issue with. The Court frowned on the fact
that the tenant no escape clause and was locked into a contract that renewed
annually year after year unless some very rare conditions occurred. Argue that
"in our case the tenant could end it for any reason if they just gave us the
30/60/90 day notice, which they neglected to do."
In Nowcom., the tenant attempted to negotiate with
the landlord in good faith. Further, these negotiations occurred months BEFORE
the renewal period began. "But our tenant is acting in BAD FAITH. They
knew the lease was going to renew and only told us of their desire not to renew
months AFTER the renewal period had already begun."
You can also argue "Although our agreement auto renews every year/two years,etc, the default provisions which would end the agreement are far more clear and specific than the generic default terms found in the Nowcom case. In fact, they are much closer to the specific provisions enumerated in the Coffee Case. "See Nowcom at p.6 (Court cites Coffee and how that case had more numerous and specific provisions that were less generic. ) See also Iraola & CIA, S.A. v. Kimberly-Clark Corp., 325 F.3d 1274, 1284 (11th Cir.2003) citing Coffee to hold that a contract of indefinite duration is not terminable at will if the contract contains express performance or default conditions.