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Old 10-03-2016, 11:23 AM
 
527 posts, read 1,408,859 times
Reputation: 692

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The purpose of a signed lease is protection for the landlord and renter (you)
It sets the terms of the rent and conditions, 1 year, 2 year. who pays what and how much.

No lease means no written contract to the conditions.
The landlord (and you) can do what they want, you leave when you want, the landlord raise rent when they want
No length of time in writing, so you can leave when you want, they could tell you to leave when they want.

An illegal apartment has no legal danger to you with the authorities.
It's illegal probably because the landlord knows the apt wouldn't be up to rental building standards, which for the most part is to protect you.

The landlord probably wants cash so there is no paper trail to the rental, he doesn't have to pay income tax on rent. And no proof you paid rent, so no rental

The danger to you is, the town finds out about the rental, inspects it and declares it illegal and must be brought up to code.
The landlord decides no and has to kick you out.

Nothing wrong or illegal with renting a room in their house, but to do so, when they accept money from you, they become a landlord and some people don't want to do the paperwork or pay income taxes on their new income.
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Old 10-03-2016, 11:42 AM
 
Location: NJ
31,771 posts, read 40,698,345 times
Reputation: 24590
Quote:
Originally Posted by mazda765 View Post
Hello,

First of all, please forgive me as I just recently graduated college and don't know anything about renting or housing. I am currently residing in Palisades Park (convenient commute to my work in NYC and cheap rent i think) in a room of a residential house with no lease which is apparently very common in palisades park. I paid security deposit and I paid my 1st monthly fee with no contract. A general description of my place: a residential home and I use the bedroom in the 1st floor with my own bathroom, my own entrance on the side of the house, and a sink (no stove). My "studio" is separated from the house by a regular door which I keep it locked.

People around me have been telling me that this rent is illegal and actually most of these types of rent in palisades park is illegal. It is also kind of shady that they only accept cash. I have been searching online and couldn't find a satisfying answer and I am getting a little bit nervous as I have no evidence of paying them and might run into a potential problem in the future. Is this rent illegal? Can you guys provide me with any information? I guess I'm most worried about potentially being related to a illegal housing, getting kicked out, or not receiving back my deposit in the future. Is there any action I can take to protect myself?

Any advice would be much appreciated. Thanks guys!
these posts are usually by someone that is hoping to stop paying rent or request money back and threaten to call the cops on the landlord. i have only read the first post at this point, am i right?
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Old 10-03-2016, 03:00 PM
 
Location: NYC
20,550 posts, read 17,705,684 times
Reputation: 25616
The OP is looking for some Tenant bill of rights like in NYC. That doesn't exist in most of NJ except a few towns that have more regulation of apts like Jersey City.

Those places that have full lease contracts are pricey, you get cheaper rent when you work out a deal with a landlord and just put simple writing in place.
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Old 10-03-2016, 04:34 PM
 
Location: Kalamalka Lake, B.C.
3,563 posts, read 5,377,574 times
Reputation: 4975
You're closer to a notel hotel rental, and here's the reason: You and your landlord live together. That means that the landlord is in full possession of the place, not you. There's no contract, so if he's a bible thumper and you bring home candy, even if you've told him you date, or if he plants a crack pipe on your dresser, he can legally boot you to the curb.

Residence hotels do this all the time. You can protect yourself by paying your cash with a witness or "suggesting" a digital online deposit right to the account, so there's a record. But if there's an issue, the arriving cops will instantly side with the person in legal possession of the home.

The arrangement itself is not illegal, in my opinion, but USUALLY this kind of arrangement means NO DAMAGE DEPOSIT, as the landlord is right there. It's actually a good idea if you rent out a home: keep a room and you, as a landlord, have a legal right to WALK IN ANY TIME, even though you may not live there. This can be handy if you rent a house out in a known college party town, recreation area, or suspect it may be used as a party pad.
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Old 10-04-2016, 02:04 PM
 
10,482 posts, read 6,999,249 times
Reputation: 11576
It sounds like the landlord is doing this because they dont want to claim your rental money as income. If this is the case it is illegal, and will cause tax/audit issues when you go to claim a deduction for rent in your taxes. What your landlord is doing is tax fraud if hes not claiming your rental income.
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Old 10-04-2016, 02:09 PM
 
2,132 posts, read 2,226,653 times
Reputation: 3924
Quote:
Originally Posted by DannyHobkins View Post
It sounds like the landlord is doing this because they dont want to claim your rental money as income. If this is the case it is illegal, and will cause tax/audit issues when you go to claim a deduction for rent in your taxes. What your landlord is doing is tax fraud if hes not claiming your rental income.
A tax deduction for your rent? On what planet is this allowed? Certainly not New Jersey.
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Old 10-04-2016, 02:10 PM
 
10,482 posts, read 6,999,249 times
Reputation: 11576
Quote:
Originally Posted by Kthnry View Post
A tax deduction for your rent? On what planet is this allowed? Certainly not New Jersey.
Of course you receive a tax deduction for rent.
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Old 10-04-2016, 02:11 PM
 
10,482 posts, read 6,999,249 times
Reputation: 11576
Quote:
Originally Posted by DannyHobkins View Post
It sounds like the landlord is doing this because they dont want to claim your rental money as income. If this is the case it is illegal, and will cause tax/audit issues when you go to claim a deduction for rent in your taxes. What your landlord is doing is tax fraud if hes not claiming your rental income.
In addition to this i might add the landlord is cheating you out your tax deduction.
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Old 10-04-2016, 02:29 PM
 
3,305 posts, read 3,868,278 times
Reputation: 2592
Quote:
Originally Posted by Kthnry View Post
A tax deduction for your rent? On what planet is this allowed? Certainly not New Jersey.
On this planet, Earth. The one with New Jersey.

You'll want to read this before April 15th:
NJ Division of Taxation - Income Tax - Property Tax Deduction/ Credit for Homeowners and Tenants
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Old 10-04-2016, 03:42 PM
 
Location: Wayne,NJ
1,352 posts, read 1,531,382 times
Reputation: 1833
Quote:
Originally Posted by jaymoney View Post
On this planet, Earth. The one with New Jersey.

You'll want to read this before April 15th:
NJ Division of Taxation - Income Tax - Property Tax Deduction/ Credit for Homeowners and Tenants
Or your landlord who want cash say, "Fine take the property tax deduction, in that case next year the rent goes up 25% (to make up for the 18% 'renters tax deduction and what I'll have to declare as income).
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