Finally, what happens if my landlord breaches the terms of the contract itself?
We have already reviewed Constructive Eviction which is when the landlord creates or does not resolve issues that make the dwelling space uninhabitable or unacceptably disruptive. Now let's talk about what happens if a landlord breaches the lease agreement themselves.
Let us use a consultation format for this section. Of course this is an abbreviated format and, as always, this illustration is for educational purposes alone not legal guidance.
Consult: "I signed the lease to rent an apartment in Pittsburgh for $1,000/mo. back in January. The lease included certain appliances to be provided by the landlord including a washer/dryer unit, dishwasher, refrigerator, air conditioning unit, stove/oven, and a microwave. When I moved in there was only the refrigerator, stove/over, and microwave. When I brought this up with the leasing agency they told me they'd reduce $25.00/mo. off of the rent. I want to know what my rights are in this circumstance."
Attorney: "When we discuss breach of contract the first question we need to determine is where the liability lies for both parties. In your situation it sounds like liability is entirely in your favor. If that's the case then we need to consider what Damages would be. In this case we start with a baseline damages calculation."
"You agreed to pay $1,000.00 and in exchange you get an apartment with all of those appliances and that's what the landlord owes you. If the leasing agency flatly refuses to make the situation correct then you will have the option to sue the landlord for the extra costs associated with moving to an apartment with those advertised features. This way you get the benefit of the bargain. So, for example, if you found a new place for $1,200.00 that includes everything from the original bargain, it is your landlord's responsibility to compensate you for the extra $2,400.00/yr. that you are now responsible for. Additionally, if you have to hire a moving company or moving truck, that's their responsibility too."
"Now that we have a grasp on our baseline damages, let's call it $3,000.00, let us consider the fact that the landlord lied about the utilities included. There is a law known as the Unfair Trade Practices and Consumer Protection Law. In situations such as these, where a lease is advertised deceptively, this law permits a judge to award three times the baseline damages, court costs, and even attorney fees. Your $3,000.00 case could be tripled to $9,000.00 and your out-of-pocket legal expenses may be covered too."
"Of course this is the most aggressive manner in which you might address your housing issue and there is no guarantee that when you make it to court that you will win or win everything you ask for. You may be more inclined to negotiate a settlement with the landlord such as a reduction in rent. You might also wish to withhold rent and place the amount in an escrow account pending resolution of the matter. Because the landlord materially breached the contract, the liability seems to be in your favor and the matter will resolve when you are satisfied with the outcome."
The takeaway from this illustration is that tenants are protected against ruthless landlords that refuse to maintain minimum standards or that employ deceptive practices when dealing with tenants.
We have already reviewed Constructive Eviction which is when the landlord creates or does not resolve issues that make the dwelling space uninhabitable or unacceptably disruptive. Now let's talk about what happens if a landlord breaches the lease agreement themselves.
Let us use a consultation format for this section. Of course this is an abbreviated format and, as always, this illustration is for educational purposes alone not legal guidance.
Consult: "I signed the lease to rent an apartment in Pittsburgh for $1,000/mo. back in January. The lease included certain appliances to be provided by the landlord including a washer/dryer unit, dishwasher, refrigerator, air conditioning unit, stove/oven, and a microwave. When I moved in there was only the refrigerator, stove/over, and microwave. When I brought this up with the leasing agency they told me they'd reduce $25.00/mo. off of the rent. I want to know what my rights are in this circumstance."
Attorney: "When we discuss breach of contract the first question we need to determine is where the liability lies for both parties. In your situation it sounds like liability is entirely in your favor. If that's the case then we need to consider what Damages would be. In this case we start with a baseline damages calculation."
"You agreed to pay $1,000.00 and in exchange you get an apartment with all of those appliances and that's what the landlord owes you. If the leasing agency flatly refuses to make the situation correct then you will have the option to sue the landlord for the extra costs associated with moving to an apartment with those advertised features. This way you get the benefit of the bargain. So, for example, if you found a new place for $1,200.00 that includes everything from the original bargain, it is your landlord's responsibility to compensate you for the extra $2,400.00/yr. that you are now responsible for. Additionally, if you have to hire a moving company or moving truck, that's their responsibility too."
"Now that we have a grasp on our baseline damages, let's call it $3,000.00, let us consider the fact that the landlord lied about the utilities included. There is a law known as the Unfair Trade Practices and Consumer Protection Law. In situations such as these, where a lease is advertised deceptively, this law permits a judge to award three times the baseline damages, court costs, and even attorney fees. Your $3,000.00 case could be tripled to $9,000.00 and your out-of-pocket legal expenses may be covered too."
"Of course this is the most aggressive manner in which you might address your housing issue and there is no guarantee that when you make it to court that you will win or win everything you ask for. You may be more inclined to negotiate a settlement with the landlord such as a reduction in rent. You might also wish to withhold rent and place the amount in an escrow account pending resolution of the matter. Because the landlord materially breached the contract, the liability seems to be in your favor and the matter will resolve when you are satisfied with the outcome."
The takeaway from this illustration is that tenants are protected against ruthless landlords that refuse to maintain minimum standards or that employ deceptive practices when dealing with tenants.