An Overview of Rental Agreements in the State of Idaho

Defining an Idaho Rental Lease Agreement

A rental lease agreement is a contract between a landlord (or lessor) and a tenant (or lessee) in which the landlord agrees to rent out his or her property to the tenant under certain terms and conditions. A rental lease agreement for a residential property – such as an apartment, condo, or single family home – typically includes information such as how long the tenant will be renting the property, whether or not rental payments will need to be made weekly, bi-weekly, or monthly, how much rent will cost, whether or not pets are allowed to live on the property, whether or not smoking is allowed on the property, and what will happen at the end of the lease.
Having a rental lease agreement in place is important because it outlines the rights and responsibilities of both the landlord and the tenant. It is a formal written outline of what the landlord is providing to the tenant, including all the associated risks. It details what the landlord expects of the tenant and what the tenant is willing to abide by. In a sense , it acts as a roadmap for the relationship that landlords and tenants forge.
While it is always a good idea for a rental lease agreement to be in written form, it does not have to be. In fact, under Idaho law, a rental lease agreement for a residential property can be oral, written, or implied and still be valid. It essentially functions as a binding contract, which means that either the landlord or the tenant could be held liable for damages if they do not fulfill their obligations under the rental lease agreement.
Under the circumstances in which a rental lease agreement is written, then it is important that both the landlord and the tenant understand what is written. But, in order for the rental lease agreement to be deemed enforceable under the law, the following points must be true:
Regardless of whether the rental lease agreement is written or oral, it is always a good idea for both the tenant and the landlord to understand and faithfully abide by the terms of the rental lease agreement.

Essential Elements of an Idaho Lease Agreement

Regardless of the type of rental property, all rental lease agreements should include the following key components:

• (1) Lease Duration: The lease needs to clearly identify the duration of the tenancy. The lease agreement could be a week-to-week agreement, month-to-month agreement, or a yearly agreement. Further, the lease agreement should identify what happens if the tenant continues to hold over after the lease term expires.
• (2) Rent Amount: The rental lease agreement should clearly identify the rent due, when it will be paid, where it will be paid, and how it will be paid. In today’s electronic world, many landlords have tenants rent deposits directly from a bank of their choosing.
• (3) Tenant Obligations: The lease agreement should clearly identify the obligations of the tenant. For example, the tenant is generally responsible for paying electricity, gas, heating, and air conditioning costs. Second, the tenant is responsible for keeping the rental property clean and sanitary. However, most lease agreements have a section which lists the landlord’s obligations too. For example, the landlord is generally obligated to supply running water and hot water. The landlord is also generally responsible for entering and repairing the premises as necessary.

State-Specific Legal Considerations for Idaho Leases

It is important to note that there are a few Idaho specific legal requirements in the Idaho Landlord-Tenant relationship. The relationship between landlord and tenant is governed by Idaho Code § 55-201 et seq. which supplements what is included in the signature lease agreement.
One requirement that landlords should be aware of is the disclosure of the presence of lead based paint in rental units. Idaho Code § 55-250 imposes an affirmative duty on all landlords renting to tenants where the rental unit was constructed prior to 1978 to provide a disclosure statement to the tenant signing the lease. The tenant’s signature on the disclosure statement is to be retained by the landlord in the leasing file.
Another requirement is to inform tenants of their rights to enter into an escrow account with the landlord for their deposit. If a tenant does not so choose, the landlord must then offer to hold the deposit in a financial institution. Idaho Code § 55-215(1) provides: Provided however, the landlord shall also advise the tenant that by failing to deposit the funds with a bank, savings and loan association, credit union, or escrow agent, the tenant forfeits his right to have the deposit so deposited. Nothing in this section shall be interpreted to require a landlord to place such security deposits in a bank account if the tenant and landlord mutually agree and so designate in writing that the tenant will assume the responsibility of safeguarding the security deposit. (Emphasis added)
Idaho Code § 55-214(1) also provides the basic requirements for security deposits for damage, destruction or other breaches regardless of whether the security deposit was placed in an escrow account. The landlord is prohibited from keeping any portion of the damage deposit unless the landlord does one of the following not later than thirty (30) days after the termination of the rental agreement: (i) return to the tenant all sums not retained under this subsection, together with interest as provided in section 28-12-401, Idaho Code, and a written statement showing the calculations used to determine the amount, if any, withheld; or (ii) serve upon the tenant, at the tenant’s current residence or last known place of residence, a written notice itemizing the amount and the reason for which the landlord may claim a right of recovery or offset.

Common Provisions for Idaho Rental Agreements

One of the most important aspects of every lease agreement is its terms and conditions. It is important that landlords and tenants understand exactly what their rights and obligations are under the agreement.
Most Idaho rental lease agreements are structured in a similar fashion. The first page will contain the date of the agreement, the name of landlord, the name of the tenant, and the property address. The next section is termed the "lease term" and will set forth a beginning and ending date. It is important to note that when the lease agreement ends, the tenancy ends, and the tenant must move out. There is no requirement that the landlord give the tenant notice that the tenancy will end. The tenant should always move out by the last day of the lease term.
The next section will typically set forth the amount of rent and due dates. In most cases, the rent will be due on the first of each month. The rent is often referred to as "rent which is due and payable." Often the lease will set forth the late fee that will be assessed for failing to timely pay the rent. The first late fee is often one-half of the rent. A $50.00 late fee is a common late fee for rent not received by the 5th of the month. This late fee is often set forth in the first month of the lease and then referred to in subsequent months. It is important to note that Idaho law provides that a landlord may not demand or receive any rent other than at the time it is due and may not demand, accept or receive any portion of a fee for the future performance of an obligation unless the amount of the fee is set forth in the rental agreement. Idaho Code § 6-320(4).
The next section will typically set forth the amount of the security deposit and the date it is due. Often the security deposit is due together with the first month’s rent. The landlord must provide the tenant with a checklist of any damages to the premises which need to be repaired or remedated. The security deposit usually ends up being used by the landlord to remedy any damage to the premises beyond ordinary wear and tear. The law requires the landlord to return the security deposit or an accounting of why the landlord is keeping the security deposit within 21 days after the tenant vacates the rental premises.
The next section will typically set forth who is responsible for payment of utilities. For example, the tenant will often be responsible for payment of the utilities, including electricity, natural gas, and telephone. By statute, however, the landlord is required to pay for water and sewer. Idaho Code § 55-301(5). If the rental premises is a resident health care facility, the landlord is responsible for paying for all utilities. Idaho Code § 55-301(6)*.
Another section will typically set forth the maintenance obligations of the parties. Often the landlord will be obligated to maintain the roof, foundation, floors, walls, and the exterior doors and windows of the unit. Often the tenant will be obligated to keep the rental unit in a clean and sanitary condition.
It is also common that the lease agreement will be renewed on a month-to-month basis at the end of the lease agreement. On a month-to-month lease agreement, the landlord or the tenant may terminate the lease by providing five (5) days written notice. Idaho Code § 55-208(2).

Tenant Rights and Protections Under Idaho Law

Tenant rights in Idaho are regulated by the Idaho Residential Landlord and Tenant Act. These regulations cover a wide range of topics, including the eviction process, tenant privacy, and remedies for breach of the lease by the landlord or the tenant. In this blog post, I will summarize a few of the rules that tenants need to know.
Any process for eviction is governed by Idaho Code § 6-303. Idaho landlords can only evict for certain reasons, such as failure to pay rent pursuant to the lease agreement, or for a material violation of terms of the landlord-tenant relationship. Once a rental period has ended (which depends on the terms of the lease agreement), either party can terminate a lease on 30 days notice. Evictions cannot occur once a lease is terminated, unless a rental period is specified; if there is a specified rental period, the landlord can evict after that period ends with required notice. If a tenant fails to pay rent , a landlord may provide notice to the tenant of unpaid rent under Idaho law. Eviction cannot occur until an unlawful detainer is filed in court by the landlord. Evictions cannot occur without judicial process.
Idaho law requires that the landlord respect tenant privacy in accordance with local ordinances. Idaho law requires a reasonable period of notice to enter, usually 24 hours, and the law also provides for a two hour time frame within which the landlord can enter for "emergency purposes." Idaho law does not specify the rights of a tenant to engage in any specific activity, except that they are prohibited from destroying or damaging the rental property. Local ordinances may provide additional rights for tenants to engage in other activities.
If a landlord violates a lease agreement, a tenant can file a written complaint with the landlord or the governing agency. The tenant may have a private cause of action against the landlord if damage or injury was sustained, and a court may award either rents paid based on an action by the tenant or specific performance based on an action by the landlord.

Tips for Drafting a Proper Idaho Rental Agreement

When it comes to drafting a rental lease agreement in Idaho, it’s crucial to ensure the document is both comprehensive and enforceable. A well-crafted lease reduces the chances of misunderstandings and potential legal issues. Here are several practical tips for landlords:

• Fully Identify the Parties: Always include full legal names of both landlord and tenant(s). If an entity is leasing the property, include the official name of the entity and list a primary contact person as well.
• Provide Clear Property Description: In addition to the address, you should provide a detailed description of the property. Include floor plans, unit numbers, parking spaces, and any other relevant information so that there is no ambiguity about what is included in the rental agreement.
• Specify the Term: Clearly state the duration of the lease. If your intention is to have an initial lease term with an automatic renewal, be sure to clearly outline those terms. All changes to the agreement should require the signatures of all parties involved.
• Include Security Deposit Terms: In accordance with Idaho law, outline the rules regarding any security deposits. This includes how the deposit may be used (like for unpaid rent or repair costs) and the timeline for returning the deposit after the lease ends. The move-in inventory and inspection form is also a great tool to employ.
• Detail Rent Charge Procedures: Outline when rent is due, how it should be paid, where it should be delivered, and what happens if the rent is late. This will help protect you if, and when, you need to pursue collections.
• Outline Tenant Responsibilities: Everything from trash disposal to number of occupants, pet policies to smoking – spell out the requirements and limitations. If you have expectations you want the tenant to honor, particularly for maintenance and upkeep of the property, provide very clear direction regarding those items as well.
• Termination Requirements: Just as you must provide clear terms regarding what is expected of the tenant, clearly state how either party may terminate the relationship. Be specific about notifications required and by what time those notifications are to be made.
• All Required Disclosures: Some disclosures are required under Idaho and federal law, like lead paint disclosures – take the time to be fully compliant so that you can avoid claims later for lack of compliance. There may be additional disclosures specific to your location or even local ordinances – verify you’ve covered all bases before handing over the keys.
• Sign and Date: All parties need to sign and date the agreement. Without the signature, you will simply have a document but nothing enforceable as a legal contract.
• Have the Agreement Reviewed: Once you’ve put pen to paper, hire an experienced Idaho landlord-tenant attorney to review the document. Having a fresh set of eyes go over the document will help identify inconsistencies or other issues that may need to be addressed.

In general, you want to be as clear about your expectations as possible. While you don’t want the lease to be a novel, at the same time, when it comes to running your rental property business, the more detail you provide, without going overboard, the more effectively your business should be able to run.

Common Mistakes to Avoid

As we’ve previously noted, misunderstandings over the details of terms and conditions virtually always arise in legal contexts. The types of disputes that commonly arise can usually be attributed to one or more of the following issues:

• "Verbal" or "handshake" agreements. It is amazing how often we see clients who, for one reason or another, did not document the material aspects of a lease and thus lack a paper trail to follow when something goes wrong.
• Failing to read the agreement. This is understandable because every lease is different , but the fact is that it is impossible to know what the lease says if you don’t read it.
• Not marking up the lease. We cannot stress this enough – make notes in the margins, cross out objectionsable language, underline and highlight important provisions, etc. If you have concerns about certain provisions, do not proceed without having those resolved.
• Misunderstanding of how rental agreements work. We have seen many instances where landlords and tenants do not fully grasp all of the issues that could arise out of a situation. For that reason, even if you have not negotiated changes to the rental agreement, ask for a lease review or consultation.