The United States is among the top 15 countries with high gross rental yields. It is a favorable place to rent apartments, villas, condos, co-ops, commercial buildings, and retail outlets. 34% of the US households are specifically for the renters and their families.
With the development of the rental market, occupants are also gaining importance daily. Although occupant looks like a synonym for tenant, it is a completely different term. Knowing the basic difference between these two is very important in the real estate market.
So, here, we unveil the debate between tenant vs occupant and have a look at the most basic but vital differences between them.
Understanding the Term: Tenant vs Occupant
A tenant can be a person or family that has signed a legal contract or Lease Agreement with the landlord. The landlord legally binds the tenant, who must fulfill obligations related to maintenance and monthly rent. Occupants do not pay any rent, and they do not have any rights related to the property or obligations towards the property.
A tenant is a person who pays the rent of the property, maintains it, and fixes the repairs and leases. On the other hand, an occupant is a person who resides in the tenant’s space with the landlord’s permission. An occupant can be a friend, family member, or any other known person.
Debating tenant vs occupant is normal, as both terms look similar. But to understand the terms better, let’s explore the key differences between tenant vs. occupant.
The Key Difference Between Tenant vs Occupant
Tenant and occupant are the two terms that are sometimes used interchangeably. But, they are not the same. Here is an overview of the key differences between the tenant and occupants.
1. Rights and Responsibilities
Tenant: The tenant has some legal rights over the property that are stated in the lease agreement. A tenant can go to court and seek a legal solution if any of their rights are infringed by the landlord. Besides, a tenant also has some responsibilities or obligations to fulfill, like paying the monthly rent, avoiding damage to the property, and maintaining it.
Occupant: Occupants do not have any legal right over the property nor do they sign any type of contract with the landlord. The landlord can ask the occupant to leave the property without any legal notice or restrict their entry in the property. However, they are responsible for following rules and regulations set by the Tenant or the Landlord.
2. Rent Payments
Tenant: A tenant is required to pay monthly rent to the landlord. The lease agreement states the monthly rent, accepted payment methods, and any additional charges.
Occupant: Occupants are not required to pay monthly rent. However, in some cases, nominal charges may apply for the occupant’s stay in the property.
3. Maintenance and Repairs
Tenant: It is the primary responsibility of the tenant to take care of the property and ensure it is in good condition and look for repairs and leakages. The tenant is required to report the landlord if any issue arises so that it could be resolved at the earliest.
Occupant: Occupants are not bound by any agreement with the landlord and, therefore, are not required to pay for maintenance and repairs. However, there may be conditions under which the tenant or landlord can ask an occupant to contribute to the cleanliness and maintenance of the property.
4. Eviction
Tenant: The eviction process for a tenant is a legal process. The landlord must state the reason for eviction and send a notice to the tenants. In New York City, the landlord must send the tenant a 30-day prior notice of eviction in case of non-payment of rent. Moreover, the tenant can seek legal advice against the eviction process.
Occupant: The occupant does not enter into a contract with the landlord and, hence, has no legal rights to stay on the property. The landlord can ask the occupant to vacate the property anytime. There is no defined eviction process in this case, and the eviction depends on the conditions and behavior of the occupant.
The Tenant vs Occupant Debate: Insights and Solutions from Property Management Firms
Understanding the difference between tenant and occupant is crucial for landlords. A tenant is bound by law and is responsible for paying rent and maintaining the property, whereas there are no such requirements for the occupant. The above points highlight how a tenant is different from an occupant. However, sometimes, the landlord can find it confusing to differentiate between the two and form a lease agreement that protects all of their rights.
In such a scenario, the landlord can take expertise from a property management firm like Citadel Property Management Corp. Property management firms have comprehensive market knowledge and provide the landlord with suitable and potential tenants. They also deal with the occupants on behalf of the landlord and protect their interests in every possible way.
Frequently Asked Questions
1. Does an occupant become a tenant?
Yes, an occupant can become a tenant by entering into a lease agreement or legal contract with the landlord.
2. Does an occupant have the right to sue the landlord?
The occupant does not have any property-related rights or legal rights, so he cannot sue the landlord for the same. However, the occupant can sue the landlord for other acts such as negligence, defamation, and any injury caused by the landlord.
3. Can an occupant be responsible for the damages caused by them?
In most of the cases, occupants are responsible fo the damages caused by them to the property or any other asset.
4. Does an occupant have to abide by the rules and regulations the landlord sets?
Yes, an occupant must abide by the rules and regulations the landlord sets.
5. Is it compulsory for the tenant to sign a lease agreement with the landlord?
Yes, it is compulsory for the tenant to sign a lease agreement with the landlord. This lease agreement usually contains or defines the terms and conditions, monthly rent, maintenance charges, and the rights of the tenant and landlord.
