Tenants have rights when the Landlord/Agent cannot fulfill the lease obligations.
Noncompliance with rental agreement
If the Owner or Property Manager fails to perform the required duties, the Tenant may sue for damages or terminate the lease, by giving the Owner the specified notice for breach of contract. Many leases require the termination proceedings to stop if the Owner or Property Manager begins a good faith effort to remedy the breach by the deadline stated in the termination notice. Remedies will vary depending on the lease. For example, under most residential leases, if the Owner or Property Manager fails to perform the required duties, the Tenant my sue for damages or terminate the lease by giving the Owner the specified notice for breach of contract. The law may require the termination proceedings to stop if the Owner or Property Manager begins a good faith effort to remedy the breach by the deadline stated in the termination notice.
 If corrective action is not taken within the specified time, the Tenant can sue for damages, obtain a court injunction directing the Owner to remedy the breach, or terminate the tenancy. If the Owner’s noncompliance is willful, the Tenant may also recover reasonable attorney’s fees. Again, state statutes and the wording of the lease agreement in effect will affect the procedures and outcomes in any situation.
Failure to Deliver Premises
Some states require the Owner to convey only the right of possession of the leased premises to the Tenant. In others, the Owner must grant actual occupancy. If the right to possession or actual possession is not conveyed, the Tenant does not have to pay rent. The Tenant can terminate the rental agreement or sue for specific performance and thereby obtain possession, reasonable damages, and attorney’s fees. It is not uncommon for a Property Manager to be unable to deliver possession because the previous Tenant has not vacated the premises or because repairs and alterations have not been completed.
 Failure to Supply Essential Services
Constructive eviction occurs when the Tenant must abandon the premises due to Owner’s negligence in supplying essential services. Examples of constructive eviction include failure to supply heat or water, failure to repair premises, or other major defaults that render the premises unusable by the Tenant. Constructive eviction is recognized by most state courts as the basis for termination of the lease, for an eviction to recover possession, or for a suit for damages. For the Owner’s protection, the lease should require the Tenant to give notice for any failure and all the Owner time to remedy the situation before the Tenant claims constructive eviction. Some state statutes prohibit the cutoff of utilities to residential Tenants even if rent or utility payments are owed to the Owner.
