Tenant Guide to Settlement Agreements

Tenant Guide to Settlement Agreements

Reasons you may want to enter a deal:

• You & your landlord may agree to you paying less than initially owed.
• You may have more control over the outcome of the case.
• You may be able to get repairs or other benefits from your landlord.
• Your case may be resolved more quickly.

Reasons you may NOT want to enter a deal:

1. You cannot afford the proposed payments

• If you cannot make the payments you agreed to --> your landlord may still move forward with an eviction If you fail to make payments, your landlord may be able to collect all payments due plus any outstanding rent and fees that have built up.

2. You disagree about what you owe

• If you believe the landlord miscalculated what you owe, there is an issue with your subsidy, or your landlord illegally increased the rent, agreeing to a deal may prevent you from disputing the amount owed.

3. You have housing conditions issues

• If you believe the housing conditions of your unit should reduce the rent you owe, agreeing to a deal may prevent you from disputing the amount of rent they say you owe later on.

4. You cannot meet the obligations you are agreeing to

• If you fail to meet an obligation of your agreement, this may lead to eviction.

Questions? Call LTLAN (202)-780-2575

My Landlord proposed a settlement - now what?

You are NOT required to sign anything.

A settlement agreement or other agreement with your landlord is one way to resolve your case, but it is not the only way.

What is a settlement agreement?

• A settlement agreement is a binding agreement between the landlord and tenant about what actions will be taken to resolve your case. While a judge might have to approve any settlement you reach, the landlord and tenant create the terms of the settlement.

A tenant may agree to...

• Move out after a certain period of time
• Pay back rent over a period of time
• Pay rent on time for a certain period
• Behave in a certain way (ex. reducing trash in the unit) for a period of time
• Make sure unauthorized occupants leave the unit
• Any other promises agreed upon

A landlord may agree to...

• Give the tenant a neutral reference
• Not raise the rent for a certain period of time
• Not collect some or all of the back rent owed
• Make repairs by a certain date
• Any other promises agreed upon

What happens if someone breaks the agreement?

• If a tenant fails to take the agreed upon actions, it could lead to negative consequences, including eviction.
• If a Landlord fails to take the agreed upon actions, you could ask the court to make them fulfill their promise, but you may still have to comply with your end of the agreement during this process.

If I do sign something, can I get out of it?

• Once a settlement is filed with the court, it is almost always final and enforceable by either side. There must be a very strong argument to set aside the agreement.
• Claiming you did not understand the agreement or did not have any other options is rarely enough to set aside the settlement.