The Lease or Rental Agreement gives renters and landlords with an officially enforceable agreement. It’s important that this document has the needed elements to provide security to both renter and landlord. A respectable lease agreement protects your interests and prevents misunderstandings that could potentially lead to litigation.
Here are several of the most important items to cover in your lease or rental agreement.
Parties to the lease / Names of all tenants:
The lease agreement must name the landlords and tenants who are bound by the agreement. Each adult who exists in the rental part. Including both members of a married or unmarried couple, should be named as tenants and sign the lease or rental agreement. This marks each tenant legally responsible for all terms. Including the full volume of the rent and the proper use of the property.
Repairs, Damages, and Maintenance:
Your greatest defense against rent-withholding hassles and other problems is to clearly set out your and the tenant’s responsibilities for healing and maintenance in your lease or rental agreement. The condition of the stuff should be noted as well as the tenant’s and landlord’s responsibilities for repairs and harms with the property. The lease agreement should also define whether the landlord or tenant is responsible for damages to the property. Such:
- The tenant’s duty to keep the rental premises clean and sanitary and to pay for any damage caused by his or her abuse or desertion.
- A responsibility that the tenant alerts you to imperfect or dangerous situations in the rental property, with specific details on your procedures for handling protest and repair requests.
- Restrictions on tenant repairs and changes, such as installing a burglar alarm system, adding a built-in dishwasher, or painting walls without your permission.
Entry to rental property / Right of entry:
To sidestep tenant rights of illegal access or violation of privacy rights, your lease or rental agreement should explain your legal right of access to the property. The terms should describe reasonable notice and explain the rights of the tenant. For example, to make repairs — and public how much advance notice you will provide the tenant before entering.
Rent Amount and Frequency:
Your Lease wants to include the amount of rent the tenant needs to pay, and how often. Typically the tenant pays rent on a monthly basis, but sometimes landlords deal the tenant the option to pay yearly, depending on the tenancy term. Rent amounts can vary over time, depending on a variety of factors like better utility costs or property taxes. Often times, if you need to increase the rent amount, you must provide your tenant written notice with a Notice of Rent Increase.
Deposits and Fees:
Most landlords will at least want a security or damage deposit in order for the tenant to rent the property. But there are additional deposits and fees that you might want to include in your leases. Such as a pet deposit or a fee for dawn rent payment.
Note that there is a variance between a deposit and a fee. A deposit is refundable. Meaning that you are obligated to return the quantity to your tenant if they move on if there are specific causes for you to not return that money. A fee is not usually refundable. So ensure you are using the right wording when referring to fees and deposits in your lease.
Some Optional Terms You May Want to Add,
- Right to renew the lease
- Right to sublet the space
- Parking restrictions/rules
- Property rules
- Other Clauses or Restrictions
While several essential and optional lease terms are included in pre-printed. Standardized lease forms, those terms may or may not fit your wishes as a property owner. That’s why we suggest people hire an attorney from your state. When you have questions or need to customize a lease agreement then working with a qualified real estate lawyer is the finest way to get the best lease agreement.