Understand the difference between an occupant and a tenant to get a clearer picture of your rights and responsibilities. Despite meaning very different things and having distinct legal implications, we often use the words tenant and occupant interchangeably. However, while the line between these two can be quite blurry, there are still clear-cut nuances that can impact how landlords should approach rent payments or evictions. Continue reading this article below to help you understand the differences and finally answer the question, when does an occupant become a tenant.
Difference between a Tenant Agreement vs Occupancy Agreement
1. Legal Status
Consider the legal rights and protections to determine if a person is a tenant or merely an occupant. With a tenancy agreement, both parties have to sign a legally binding document with the terms of the lease. It often includes the details of the landlord and tenant, property address, and rent payment information. As a result, tenants also enjoy protection through local landlord-tenant laws.
On the other hand, if you’re an occupant, you have considerably fewer legal rights. Since occupancy agreements don’t fall under landlord-tenant laws, it is often a much more informal arrangement between you and the property owner. Thus, it is more popular in short-term stays.
2. Rights and Responsibilities
Understand the limits of each person’s rights and responsibilities. For instance, a tenancy agreement is more formal and operates under landlord-tenant laws. Tenants have clearly defined rights to quiet enjoyment, privacy, and a minimum habitability standard. It also means that they have more responsibilities to keep the property in top-notch condition, and may be responsible for some maintenance like taking out the trash, replacing light bulbs, or mowing the lawn.
On the other side, occupants have fewer responsibilities to the property and often don’t have to take on any property maintenance chores. However, they also have fewer rights and fewer legal protections.
3. Eviction Policy
If you want to end a tenancy agreement early, adhere to proper documentation and formal steps to avoid a potential counter-lawsuit. Despite tenant agreements typically covering a longer period often on a month-to-month basis, if a landlord wishes to terminate the lease due to illegal activities or unpaid rent, they can. However, since they have protection through landlord-tenant laws, you’d have to follow due process to complete the evictions.
In comparison, occupancy agreements grant fewer legal rights, including in eviction disputes. Thus, the first step to remove unauthorized occupants is talking with your tenant. After expressing your dissatisfaction with the arrangement, you can ask them to leave with fewer formalities and a much shorter notice.
Key Points to Consider for Landlords
Rental Payment
Clarify expectations about your rental payments by getting specific with the nitty-gritty. It’s not enough to have a verbal conversation about payment schedules, you should go the extra mile by putting the due date, amount, and acceptable payment methods in writing. If you have any policies on late fees, highlight them as well as in your tenancy or occupancy agreement. It would also be best to include a security deposit addendum. This section should cover the amount, how you plan to make deductions, and the timeframe for return after the tenancy ends.
Exclusive Possession
Understanding the difference between a tenant and an occupant is important so landlords know how to protect their property. For example, landlord-tenant laws guarantee tenants’ rights to privacy, which prevents property owners from entering the apartment without consent or interfering in the renter’s business. In other words, tenants have exclusive possession of the property.
Since occupancy agreements operate under more informal rules, you’re at liberty to decide whether your occupants have exclusive possession as well, or if there is shared access with others. In both instances, you should explicitly state your right to access the property for repairs and inspections to avoid a lawsuit.
Written Agreement
Protect your investment by creating a written agreement that clearly outlines the terms and conditions of your tenancy. After reaching a verbal agreement with your tenant or occupant, it’s essential for both parties to exercise legal protection by putting everything in writing. This tip is especially important for occupancy agreements, which landlords often take lightly because of the informal arrangement. However, that habit could lead to misunderstandings and unnecessary disputes.
Conclusion
Understand the distinction between an occupant and a tenant to avoid running into legal trouble. A tenancy agreement is a formal arrangement that offers the tenants more legal rights and protection from an abrupt eviction. On the other hand, an occupant has fewer rights and responsibilities to the property and a more flexible arrangement that is easier to terminate.
That’s why landlords should consider creating a written agreement in both situations to clearly outline their expectations. Thus, it would be wise to include details about rent payment, the security deposit, and the limits of exclusive possession.
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