Introducing Rental Contracts in Utah
Rental contracts in Utah, just as with all other states, are agreements intended to outline the obligations of both the tenant and the landlord. They can be extremely beneficial if the tenant has a specific question about the terms of the contract. It can help determine things such as who is responsible for specific household repairs and when rent is due to the landlord, among other provisions.
Of course, the use of these contracts is highly recommended, especially over oral agreements, to avoid any confusion and ensure all important details are outlined sufficiently.
Utah rental contracts typically require personal information from all tenants within the leased property , as well as the ability to legally enter into a contract (meaning the signer is of legal age or has parental consent). Lease agreements also outline rent due dates, the deposit amount and how and when it will be refunded, as well as if there are any late fees.
Other provisions you may be able to find in a Utah rental contract include things like pets and pet deposits, parking rules, furnishings currently in the home, emergency contact information, rental assistance reimbursement and rules regarding utilities.
Essential Aspects of a Rental Contract in Utah
Utah law requires an agreement for a lease of an apartment or single-family home over 12 months to be in writing. Some key components that should always be included in a written rental contract are discussed below.
● Terms of Tenancy: Just like any other contract you may sign, knowing when each party’s obligations are due is critical to avoid any potential breaches. Under a rental contract in Utah, the tenant agrees to pay rent each month while the landlord agrees to let them stay in the property. The rental contract should clearly state when rent is to be paid, including any acceptable manner of payment.
● Address: A rental contract in Utah should clearly state the address of the property being rented. This is important so that there is no confusion about what property is being rented. This requirement seems obvious, but confusion about the address of the property is the most common reason disputes arise. It is also best practice to require in writing a forwarding address for both the landlord and tenant.
● Description of Property: It is always best practice to include a thorough description of the property. This description may be less or more detailed depending on whether the tenant is renting a fully furnished apartment or a vacant lot. Regardless, the rental contract should state the number of rooms and/or bathrooms in the property. The rental contract should also state if there is covered parking for one vehicle and make sure it is clear whether the parking space will be uncovered or covered. Finally, the rental contract should specify if utilities are included in the rent.
● Rent Amount, Due Date & Payment Method: The rent amount that is to be paid under the contract must be clearly stated. You may also consider including an option for rent to be paid by automatic debit, but this is not required. The payment method should also specify who the tenant should pay. It is not uncommon for property management companies to manage a property. Be sure to include the contact information for the individual the tenant should contact regarding renting the property.
● Security Deposits: Utah law allows landlords and their agents to take security deposits from tenants. A security deposit is an amount that the landlord may take for damages that may occur during the duration of the rental contract. The rental contract should clearly state the amount of the deposit. Be sure to comply with the laws surrounding security deposits in Utah when taking security deposits from potential tenants.
Legal Obligations of Landlords and Tenants
In the majority of rental contracts, the provisions are unenforceable if the contract is deemed unconscionable at the time it was made. In the case of Atlantic Richfield Co. v. Whittington, the Utah State Supreme Court held that with the movement towards standard rental contracts, it is important to apply the unconscionability analysis to both procedural and substantive aspects of the provision. In this case, there was a jury trial that awarded damages to a tenant for a breached implied warranty of habitability. The lease agreement required the landlord to comply with the building codes materially affecting health and safety. The landlord challenged this provision as unconscionable because the tenant was unable to negotiate its inclusion, although the landlord did include the provision in the contract on approximately 160 additional contracts.
The unconscionability analysis under the UCC requires the court to consider: 1) the relative bargaining power of the parties; 2) whether the complaining party had an opportunity to understand the terms of the contract; and 3) whether the terms of the contract were unreasonable and oppressive.
First, the court held that these provisions did not constitute a negotiation advantage. Both the tenant and the landlord were represented by counsel. The tenant had the opportunity to understand the terms of the contract. Second, the court also addressed the substantive aspect of the provision and found that because the clause was so broad as to require compliance with all building codes, it effectively eliminated the landlord’s responsibility of determining whether the building was in compliance. The court determined that the breach of the implied warranty of habitability is a nonwaivable duty of landlords and the breach occurs when the tenant is deprived of basic necessities of habitability, such as adequate heat, running water, or electricity. Therefore, the warranty extends to any defect in the premises that materially affects the health and safety of the tenant. As a result, the court reformed the provision as follows: "The landlord agrees to maintain the premises in compliance with the unit’s registration statement" and "the landlord further agrees the registration statement will identify the unit’s deficiencies that materially affect the health and safety of the unit’s occupants."
Typical Provisions in Utah Rental Contracts
Most rental contracts will first identify the parties to the agreement. It may give the name of both the landlord and the tenant(s) but might also include comments about the parties’ relationships. For example, a contract might refer to the tenant as "the Husband" or "the Wife," instead of listing full names.
The contract might give the address of the rental property, as well as its square footage. Some rental agreements might give information about amenities, such as swimming pools or hot tubs. The contract will also likely identify the monthly rent to be charged and when it is due.
Every rental contract will likely have a section that gives the duration of the rental term. Tenants can enter into either short-term (or "tenancy-at-will") agreements or long-term agreements. If you sign up for a short-term lease, your rights and responsibilities only cover the number of months set forth in the agreement. Long-term rental agreements are often referred to as "fixed-term leases."
Most rental contracts have sections that address maintenance issues. One of the biggest problems tenants have is dealing with as landlords who refuse to repair obvious problems at a rental property. Because of this, most contracts state that landlords are responsible for routine maintenance, such as making sure the plumbing is working. Landlords typically need to respond to tenants’ requests to repair problems, so long as the tenants did not cause the problems.
In Utah, there are several requirements that govern landlord-tenant agreements. If the contract (or lease) has any clauses that violate Utah statutes, those clauses might not be enforceable. For example, rental contracts might still try to impose unusual fees, like a daily charge for each day rent is late. Those clauses would be invalid, however, and courts in Utah might interpret those clauses to be a breach of the contract. Contracts that violate laws may not be enforceable.
Ending a Rental Contract in a Lawful Manner
Termination of a Rental Contract in Utah
For most tenants and lessors, the relationship does not last forever and the contract will eventually need to be terminated. There are some general rules pertaining to termination requirements in Utah that all lessors and tenants need to be aware of.
Utah has a notice statute governing rental contracts. Notice provisions vary depending on what party you are. Tenants must give landlords 30 days’ notice prior to terminating a month-to-month lease contract. A tenant will need to notify the landlord of the intent to quit by the last day of the month for the end of the rental period. For example, if you have given notice to your landlord on February 12 to terminate and move out of the premises, you are in breach of the contract because your notice must be provided to the landlord by January 31 in order to be effective the next month.
Similarly , lessors must provide tenants notice to terminate the contract. For term leases, the notice must be provided 15 days in advance of the expiration of the lease. However, when the lease may be terminated with 60 day notice, the notice must be provided 90 days in advance of the termination date. The law is slightly different for month-to-month leases as lessors need to provide their tenants 15 days’ notice if rent is paid weekly, 30 days if rent is paid biweekly or monthly, 45 days if rent is paid semi-annually and 90 days if rent is paid annually. In contrast to the notice required from the tenant, lessors must provide their tenants with notice within the first 10 days of rent being due. The law also provides that regardless of whether the landlord has given 10 days’ notice, simply because rent is paid does not mean that the contract has been renewed.
Resolving Disputes and Seeking Legal Action
As with any contractual relationship, there may be disputes between landlords and tenants. In Utah, the most common disputes involve the non-payment of rent, maintenance or repair issues, and security deposit deductions. The Utah Fit for Life Act contains specific requirements for enforcement of various provisions of the Act and its related administrative rules. Either the tenant or landlord can bring a lawsuit in justice court to enforce a provision of the Act or rules, or to determine whether a particular action violates a right granted by the Act or rules. Although many landlord-tenant disputes are settled peacefully, sometimes litigation is required. Utah courts have jurisdiction over eviction actions, judicial foreclosures, and enforcement of landlord remedies as set forth in the Fit for Life Act. Utah landlord-tenant law does not provide a tenant with the right to withhold rent or to make repairs and deduct the cost from future rent. Nor does it allow for a tenant to cancel a lease or vacate a rental proper without liability for damages or loss caused by cancellation. If an issue cannot be resolved without litigation, we are always happy to help.
Creating a Thorough Rental Agreement
When creating a rental agreement, landlords are strongly advised to follow these best practices to avoid potential legal problems down the line:
Be Specific and Specific and Specific Some More: Be as clear as possible when defining the terms of your lease. For example, if you plan to include utilities into the rent, specify which utility companies and which utilities will be included. If you plan to let tenants make certain repairs, spell out in detail the work allowed. In fact, it may be wise to include links to pictures of the types of repair you approve, such as those posted below for a rental owned by a colleague:
Rent: Each month we will ask you for $X for rent. You can pay us with a cheque in the mail, or we can set up Pre-Authorized Payments from your bank account.
Utilities: You are responsible for most utilities. You can have your own accounts with BC Hydro, Telus, Shaw (or any other service providers). You can also bundle. If you want help, we can provide names of companies that have bundled services for your reference. The only utility included in your rent is a small portion of the water and sewer bill for the building. We pay the property tax, garbage, and snow removal.
Repairs: You are responsible for all household repairs if it costs less than $50. If you can do the repairs, please do them. If you can’t, we will find someone to do the repairs who is not as effective as an experienced handyman or contractor and we will charge you the cost. For items over $50, you must contact us before making the repair. You agree to send us a picture of the problem so we can confirm it. We will schedule a visit to review the problem. If we think you are taking advantage of us, we will demand that you fix the problem on your own.
No Pets: You are not permitted to keep any pets unless you have our express written permission. If any pet is found in your unit, you will pay the damage deposit, and we will have 72 hours to remove the animal. You will be liable for any damage done by any of your pets, whether we have given express written permission or not.
The landlord-tenant relationship involves contingencies and scenarios that may take place. Be thorough and cover all of the bases.
Helpful Tools for Landlords and Tenants in Utah
In addition to the Utah state laws governing landlord-tenant relationships, there are several local and national entities that provide resources to those involved in rental agreements. The Salt Lake City Housing Authority provides support to low-income and affordable housing residents and also seeks to provide homes for the homeless . The Utah Rent Control Information Office helps those who have obtained a Certificate of Rent Control in Salt Lake City or Park City. Legal Aid Society of Salt Lake City provides free or low-cost legal aid to low-income individuals, including assistance with landlord-tenant issues. The American Apartment Owners Association is a resource for both landlords and tenants, and provides materials for managing your property.