In the past years, many Americans have shifted away from just the white picket fence dream. Gradually, they became significant contributors to the dramatic increase in house rental demands. In 2016 alone, Statista reports that 27% of the US population rents homes instead of owning one. To keep up with the demands of the ever-expanding rental society, the number of rental properties went sky-high. And if you’re a rental property owner, protect your interests by creating a solid and well-formatted house lease/rental agreement. Read More
House lease/rental agreement forms outline the rental arrangement between landlords or lessors to tenants or lessee. This kind of agreement form sets out in clear terms what both parties can expect from each other throughout the agreed and signed rental period. Such terms include the property details, monetary obligations, lease/rental type, termination details, and so on. With a well-worded agreement form set between both parties, rest assured that both of their interests will get the protection it needs.
In securing a healthy landlord-tenant relationship, there is a need to create a comprehensive and well-written house lease/rental agreement form right from the outset. Below are some guidelines that both parties should review and consider when making and filling out this type of agreement form.
Like any type of agreement form, your house rental/lease agreement form will start with the introduction of the landlord and tenant who will be referred to as “party” or “parties” throughout the document. This section contains the basic details of the parties involved. Such information includes their full legal names, current addresses, and the agreement creation date. Indicating such details is a form of additional insurance and assurance for both parties.
Provide a brief description of the house that is being leased/rented. This section indicates the type of property and its complete address, including its building and unit numbers, if applicable. If the property features storage and parking areas, be sure to also include such details in this section. And if there are areas in the property that the landlord does not want the tenant to access, ensure to indicate this in the agreement form explicitly.
When it comes to tenancy agreement forms, the lease/rental and payment terms will always be the highlight. Upon writing the lease/rental terms, define whether the term of the tenancy is short-term that will renew automatically or long-term that runs for at least a year. Once cleared, indicate the commencement date, the length of tenancy, and the expiration date. When outlining the payment terms, spell out the amount payable, fixed or expected date of payment, acceptable payment methods, and details on late rent fees and grace periods.
While there could be a separate provision of a rules and regulations document, you can still indicate some of the basic but most essential policies in the house lease/rental agreement form. Most landlords will indicate policies on limiting potential liabilities from illegal activities, restricting all forms of smoking, and prohibiting all types of pets. If you have exceptions such
Well-written termination details can avoid any unnecessary disputes in all future dealings. In the possible event that lawsuits and claims will arise, a well-drafted termination can come in handy to strengthen one or both party’s defense against such. Discussing the termination details could also provide an avenue for both parties to review their expectations and concerns and assess potential landlord-tenant relationship roadblocks.
Federal, state, and local laws govern the landlord-tenant or lessee-lessor relationship and the overall residential property rental aspects. The absence of an agreement alone is already an invitation for a lawsuit. Without an agreement, both parties will hardly strengthen their claims.
Sealing the deal between landlords and tenants with a handshake will not suffice—signing a clear lease/agreement form must take place. With a signed agreement form, both parties can avoid future disputes, help deal common tenancy issues, comply with federal, state, and local landlord-tenant laws, and protect each other’s interests.
Most houses are charged based on a percentage of its market value, and most landlords charge between 0.8% and 11% according to SmartAsset. For instance, if the value of your home you are renting out is at $500,000, you can charge your tenants a monthly rental fee between $4,000 and $5,500.
Both parties, unless a specific termination clause in the agreement form allows, could not break the lease before the agreed end or expiration date. However, it is possible that both parties can settle the cancellation amicably, but no party can decide on its own.
Seek the assistance and services of your local real estate agent to help you list your house for lease/rent. Another cost-effective alternative you can opt for is to publish your own residential property listing and upload it on listing websites for free.
There is a proverbial expression that a man’s home is his castle; unfortunately, the circumstances of the modern world have led many individuals to rent castles instead of owning them. However, this does not mean that they can no longer build a fortress to protect their interests and that of the landlord or lessors—this is precisely the role that a house lease/rental agreement form can fulfill. Should you have any plans to enter the rental society either as a landlord or a tenant, see to it that you have already acquainted yourselves with the basics of a house lease/rental agreement form.