Lease, Rent, Insure

From helpful definitions to legal issues – you might want to have a handle on this material so you don’t find yourself in one of those worst-case-scenarios - without a security deposit, without renter’s insurance, without your stuff.

Lease Information
The following information is taken from the Tenant’s Rights Guide provided by the New York State Office of Attorney General.

• What is a lease? -   A lease is a contract between a landlord and tenant which contains the terms and conditions of the rental. It cannot be changed while it is in effect unless both parties agree. Leases for apartments which are not rent stabilized may be oral or written. However, to avoid disputes the parties may wish to enter into a written agreement. An oral lease for more than one year cannot be legally enforced.
  
  
• Lease Renewals - Except for rent-regulated apartments, a tenant may only renew the lease with the consent of the landlord. A lease may contain an automatic renewal clause. In such case, the landlord must give the tenant advance notice of the existence of this clause between 15 and 30 days before the tenant is required to notify the landlord of an intention not to renew the lease.
  
  
• Security Deposits - Virtually all leases require tenants to give their landlords a security deposit. The security deposit is usually one month's rent. The landlord must return the security deposit, less any lawful deduction, to the tenant at the end of the lease or within a reasonable time thereafter. A landlord may use the security deposit: (a) as reimbursement for the reasonable cost of repairs beyond normal wear and tear, if the tenant damages the apartment; or (b) as reimbursement for any unpaid rent.
  Landlords, regardless of the number of units in the building, must treat the deposits as trust funds belonging to their tenants and they may not co-mingle deposits with their own money. Landlords of buildings with six or more apartments must put all security deposits in New York bank accounts earning interest at the prevailing rate. Each tenant must be informed in writing of the bank's name and address and the amount of the deposit. Landlords are entitled to annual administrative expenses of 1% of the deposit. All other interest earned on the deposits belongs to the tenants. Tenants must be given the option of having this interest paid to them annually, applied to rent, or paid at the end of the lease term. If the building has fewer than six apartments, a landlord who voluntarily places the security deposits in an interest bearing bank account must also follow these rules. For example: A tenant pays a security deposit of $400. The landlord places the deposit in an interest bearing bank account paying 2.5%. At the end of the year the account will have earned interest of $10.00. The tenant is entitled to $6.00 and the landlord may retain $4.00, 1% of the deposit, as an administrative fee.
  
  In order to protect your security deposit, it is very important to complete a detailed checklist of all damages that already exist. Make sure you thoroughly check each room, noting items as small as nail holes in the walls, stains or burns in the carpet, cracks in the windows, and water damage or other damage to the ceiling.
  
  It is a good idea to protect your security deposit by taking lots of pictures or a video of your apartment before you move in, while the apartment is empty. This will serve as evidence of the condition of your apartment before you lived there. You should also take similar pictures or a video when you move out.

• Subletting and Assigning a Lease - Subletting and assignment are methods of transferring the tenant's legal interest in an apartment to another person. A sublet transfers less than the tenant's entire interest while an assignment transfers the entire interest. A tenant's right to assign the lease is much more restricted than the right to sublet.
  
  A tenant may not assign the lease without the landlord's written consent. The landlord may withhold consent without cause. If the landlord reasonably refuses consent, the tenant cannot assign and is not entitled to be released from the lease. If the landlord unreasonably refuses consent, the tenant is entitled to be released from the lease after 30 days notice.
  
  Tenants with leases who live in buildings with four or more apartments have the right to sublet with the landlord's advance consent. The landlord cannot unreasonably withhold consent. If the landlord consents to the sublet, the tenant remains liable to the landlord for the obligations of the lease. If the landlord denies the sublet on reasonable grounds, the tenant cannot sublet and the landlord is not required to release the tenant from the lease. If the landlord denies the sublet on unreasonable grounds, the tenant may sublet. If a lawsuit results, the tenant may recover court costs and attorney's fees if a judge rules that the landlord denied the sublet in bad faith.
  
  These steps must be followed by tenants wishing to sublet:
• The tenant must send a written request to the landlord by certified mail, return-receipt requested. The request must contain the following information: (a) the length of the sublease; (b) the name, home and business address of the proposed subtenant; (c) the reason for subletting; (d) the tenant's address during the sublet; (e) the written consent of any co-tenant or guarantor; (f) a copy of the proposed sublease together with a copy of the tenant's own lease, if available.
• Within 10 days after the mailing of this request, the landlord may ask the tenant for additional information to help make a decision. Any request for additional information may not be unduly burdensome.
• Within 30 days after the mailing of the tenant's request to sublet or the additional information requested by the landlord, whichever is later, the landlord must send the tenant a notice of consent, or if consent is denied, the reasons for denial. A landlord's failure to send this written notice is considered consent to sublet.
• A sublet or assignment which does not comply with the law may be grounds for eviction.

Maintenance Issues
Ask about the maintenance procedure and how you make a request for something to be fixed or repaired when you move in.  Request a number to call for maintenance emergencies. If you do not want maintenance staff entering your apartment when you are not there, you need to make that clear to the complex manager.

Lease Questions?
For questions about your lease, or any legal concerns about your landlord, full-time undergraduate students can arrange a consultation with Paul Kelly, the Students’ Association lawyer.  Appointments with Mr. Kelly can be made by contacting Debbie Gaudet at (585) 275-3236, Monday to Friday, 9am to 4pm.

Renter’s Insurance
Your landlord's insurance does not cover your personal property or your clothes, stereo, furniture, television, bicycle, jewelry, personal computer, artwork and other items against destruction or loss. Renters insurance, however, covers your personal property and, in addition, provides liability coverage.

Renters insurance will protect you against losses due to fire or smoke, lightning, vandalism, theft, explosion, water damage from plumbing.  Renter’s insurance will also cover you if someone is injured in your apartment. The insurance generally, covers your responsibility to other people injured at your apartment, and includes legal defense costs if you are taken to court.

Does renters insurance cover all my possessions?
It depends. Some possessions - jewelry, computers - are often subject to a per-category theft limit (for example, some policies have a $5,000 limit for computers). When seeking information on renter’s policies, ask about the various category limits and how they apply to expensive items you own. You may purchase a floater, providing additional coverage for specific items not included in your basic policy.  You should ask if you need to specifically declare a value for any possessions and/or provide an appraisal or purchase receipt.

Is my bicycle or car covered by renter’s insurance?
Your bike is generally protected by a standard renter’s insurance policy. Motor vehicles are not covered. A separate insurance policy is needed to protect your car, van or motorcycle.

How do you buy Renter’s Insurance?

Take an Inventory
Before purchasing, make an itemized list of everything you own with price estimates and purchase dates (if possible). Your inventory will help ensure that you purchase the right amount of insurance - not too much or too little. Also, an inventory will help make filing a claim easier. Make copies of this inventory and keep it in a safe place outside of your home (at work, in a safe-deposit box or friend's house). Take photographs of each item; this can be helpful when filing a claim.

Ask about:

1. Theft Limits - Inquire about coverage limits and whether you'll need to buy a floater, which provides additional coverage for some of your more valuable items.
2. Cash or Replacement Value - Your policy can insure possessions one of two ways - for either the cash or the replacement value. Cash value coverage takes into account the age and condition of items at the time of damage or loss. To arrive at a current value of the item, replacement value pays today's cost of a new replacement item. For instance, if your five-year-old TV is stolen, a cash value policy will pay only part of the original purchase price while a replacement policy will pay the current price of a comparable set. Replacement value policies tend to cost more, and there may be other requirements as well.
3. Deductible Options - Find out about the deductible - your out-of-pocket cost. The lower the deductible, the more the policy will cost you.
4. Seek Discounts - You may be eligible for discounts if your apartment or home has a security system, smoke detectors, or deadbolt locks. Additional discounts may be available depending on your age or whether you are a nonsmoker.

Read Your Policy - An insurance policy is a contract between you and your insurance company. Read the policy carefully - if you have questions or if something is unclear, call your insurance company representative. Don't sign the contract unless you fully understand the company's responsibilities as well as your own. An insurance policy spells out several obligations for both you and the company. It is always contingent upon you providing the insurer complete, accurate and timely information.

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