The standard rental agreement used by Rental Management Company deliberately attempts to deprive tenants of rights granted under the Landlord Tenant Act.
RMC’s rental agreement is subtitled "Month to Month for Set Term". This form of rental agreement is not recognized by Washington state laws.
RCW 59.18.200 states: “When premises are rented for an indefinite time, with monthly or periodic rent reserved, such tenancy shall be construed to be a tenancy from month to month…”
RCW 59.18.220 states: "In all cases where premises are rented for a specified time, by express or implied contract, the tenancy shall be deemed terminated at the end of such specified time.”
RMC’s rental agreement Line 3 states: “Rental Term: Month to Month starting ______ for set term to _____.
Clearly, the premises are being rented “for a specified time, by express or implied contract”. Most tenants would consider this agreement to be a one-year-lease.
RMC also requires the tenant to sign “Rental Management Company’s Policy Regarding Lease Breaks”. This policy states:
“If you find it necessary to vacate the property you are leasing prior to the expiration of your lease term, you should adhere to the following procedure:”
The policy goes on to list the penalties the tenant will suffer for breaking the lease prematurely:
1. You need to continue paying rent on time, even though you may or may not be occupying the premises.
2. If applicable, do not expect to be able to use your prepaid last month’s rent at this time. The agreement specifies that it may only be used for the last month of the agreement term. It will be credited to you on your final accounting along with your security deposit.
3. You must continue to pay all utilities as specified in the lease even though you may or may not be occupying the premises.
4. You are expected to cooperate with your property manager and other agents in their efforts to show the property to new renters.
5. You are responsible to continue to maintain the yard and grounds.
6. You must pay an amount of [one month’s rent] to cover lease commissions and advertising, which are directly attributable to your inability to complete the lease.
7. You cannot sublet the premises; your lease specifically forbids subletting. All applicants must be screened and qualified by Rental Management Company.
Clearly, the contract is for a set term (a one-year-lease) and holds the tenant liable for prematurely breaking the lease.
Washington law only allows the above penalties when a tenant breaks a rental agreement for a set term. The tenant is being held to the requirements of a lease.
HOWEVER, Clause E of the rental agreement states:
“LANDLORD’S TERMINATION – This rental agreement is a month to month agreement for a set term. Landlord reserves the right to terminate this agreement any month during the term of this agreement.”
On one hand, RMC wants tenants to believe they are bound to a one-year-lease and will suffer penalties if the tenant breaks the lease prematurely. On the other hand, they reserve to terminate the lease (apparently for any reason) as if the agreement were month-to-month.
When I sued RMC on a related matter (Case S08-1164) the judge determined the rental agreement was for a set term and that “Clause E” was illegal and unenforceable.
If you have been forced out of a Rental Management Property prematurely based on “Clause E” above you may be able to sue them in Small Claims Court.
Everything you need to know about Small Claims Court can be found here: http://www1.co.snohomish.wa.us/Departments/District_Court/About/
