The Madison Landlord and Tenant Issues Subcommittee recommended Thursday a reform of the landlord-tenant agreement on leases to push back the date when landlords can begin offering leases to new tenants.
The current version of the agreement contains two provisions that have become controversial over the past decade, especially for prospective tenants and smaller apartment owners. The current rule requires that landlords wait until one quarter of the way through the current lease, typically around Nov. 15, before they offer leases to new tenants.
However, the current version allows landlords to avoid this time limit if the current tenants sign an agreement. As a result, landlords who take advantage of this provision are able to solidify contracts to tenants for the next year as soon as the current tenant signs the agreement.
""The current policy presents a problem for landlords as well as tenants,"" Ald. Bridget Maniaci, District 2, said.
""The larger landlords are able to maintain a competitive advantage because of this loophole. They use the provision to get new tenants right away,"" she said. ""In the meantime, their current tenants are forced to decide soon after moving in whether they will sign for the next year.""
The reform would eliminate this provision and extend the amount of time before landlords can sign new leases. The period between the signing of each separate lease would be extended to the halfway point in the lease period, around mid-December.
""This proposal forces everyone to slow down,"" committee member David Sparer said. ""This way, smaller landlords have a more equal chance for advertisement, and tenants who already live in the apartment have some time to think about their situation in the coming year before they sign another lease.""
Supporters of the proposal said the application of this loophole has increased greatly over the past few years as landlords have discovered its existence, undermining the rule preventing landlords from signing new leases until November.
""The reform would make sure that everyone has the same date at which a lease can be signed,"" Maniaci said.
