Working For Justice In Housing

LEASE CAN BE ORAL OR WRITTEN

According to Maryland law, a lease means any oral or written agreement, express or implied, creating a tenant-landlord relationship.  It includes subleases (Real Property Article, Section 1-101 [h]). 

That a lease can be oral is a surprise to many tenants and landlords who contact BNI.  If they don’t have a written contract, then the tenants believe they can leave at will and the landlords believe that they can evict at will, i.e., tell the tenant to leave immediately.  

We have had landlords ask us, “How can the occupant prove that he/she is a tenant without the proof of a written document?”  We point out the obvious: the tenant has possession, usually has been there for some months, has rent receipts and many times, witnesses who can attest to the tenancy.  We also point out that when one has an oral lease, the tenant/landlord law of Maryland is the lease. 

Once in a while, the situation is not clear.  Recently, a landlord complained to BNI that he gave keys to a tenant to view an apartment.  The tenant liked the apartment, gave the keys back , and was to come back with the first month’s rent and the security deposit.  The next thing the landlord knew was that the tenant had moved into the property--having made an extra set of keys! 

Since the landlord’s position that a lease does not exist would be difficult to prove, probably the best thing for the landlord to do is to file in Rent Court and give proper notice ending the tenancy.  Then in the future, the landlord should go with a prospective tenant to view the property keeping the keys in hand.  

Most oral leases are month-to-month tenancies, but one can have an oral lease for a year or less.  Any lease for more than a year, if it is to be enforced, must be written. (Real Property Article, Section 5-101 and 5-102). 

A landlord who owns five or more rental units in the state must offer a new tenant a written lease.  If a landlord fails to do so, it is presumed that there is a one year lease from the date of the tenant’s first occupancy unless the tenant does not wish to remain in the rental unit for one year.  In that event, the tenant is entitled to terminate the lease by giving the landlord a one month written notice that runs with the rent cycle.  (See information on Proper Notice.) 

We have come across very few oral leases for a year, but the concept can be useful.  A tenant signed a year’s lease with a landlord who stated that he would later sign the lease and send a copy to the tenant.  The landlord then gave the keys to the tenant who moved in.  The landlord did not give a copy of the signed lease to the tenant.  A month later, they got in a argument.  The landlord told the tenant that he would not sign the lease, that the tenant was on a month-to-month basis; and the landlord was giving him a month’s notice to move.  Our lawyers pointed out that the intent was to have a year’s lease, possession was given, and while the landlord could not be forced to sign the lease, the lease which the tenant signed was good proof of what was intended and that tenant could claim a year’s oral tenancy.  

Written leases can run from one page to many pages.  Simply because a written lease is many pages doesn’t make it a better lease.  Such a lease may be simply outlining Maryland law which governs the tenant/landlord relationship and which is binding whether or not it is mentioned in the lease.   

Written leases, to be effective and without controversy, should be signed by the tenant and by the landlord, or the landlord’s representative.  Witnesses to signing a lease (or the notarizing of a lease), are not necessary, but could be a valuable asset if one party to the lease denies signing it.  

The basic written lease usually outlines the relationship between the landlord and the tenant covering such items as: amount of rent and security deposit, rent due date, beginning and end of the tenancy, notice requirement to end or renew the lease, late charges, proper means of giving notice, landlord and tenant rights and responsibilities, etc. 

Click here to see what Maryland law says about this issue 

Legally Reviewed - BNI. Last Update - March 2001