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Lease Contracts - The Meaning of Joint and Several
When you see the phrase "joint and several" in a legal
document or contract it means that that the parties on one side
of the agreement are responsible individually and collectively
for the terms of the agreement.
Example: In the case of two tenants signing a lease agreement,
"joint" means they are jointly responsible for the rent.
"Several" means that their joint relationship is severed.
In a contract it indicates that they have agreed that they are
also responsible individually for the rent. If one does not pay
his/her share of the rent the other is responsible for the entire
amount.
Here's an example of a landlord who had a "joint and several"
lease with the added provision that tenants must pay rent with a
check, money order or cashier's check in the full amount every
month.
Landlord allowed the two roommates to pay half the rent each
month with two separate checks. Bad policy.
It not only creates accounting problems... but if one tenant
pays on time and the other is late how do you handle the late
penalty? And...
If you accept payment from one tenant and the other tenant
fails to pay have you risked having accepted a partial rent
payment and then not be able to evict?
Here's the good news. If you have in your lease a "non-waiver"
provision it indicates that even if you allowed lease violations
in the past you can at any time demand that tenants comply with
the terms of the lease.
If the tenants continue to pay with two separate checks you
can return the checks and give "notice for failure to pay
rent".
If they then fail to provide you with a single check for the
full amount of the rent you can file a forcible detainer action
(eviction).
What if tenant #1 pleads that tenant #2 has moved from the
property and tenant #1 should only be required to pay their own
half of the rent?
Show them "joint and several" in your lease agreement and
explain that tenant #1 is now responsible for the entire amount
of rent.
Explain that tenant #1 can seek recovery of the other half
from tenant #2 in small claims court.
If you rent property to more than one tenant be sure your
lease has "joint and several" and "non-waiver" clauses.
Carefully explain each to every new tenant.
About The Author
Mark Walters is a real estate investor and author. His
published works can be found at his web site: http://www.CashFlowInstitute.com
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