A Rental Agreement is a necessary tool in the business of land-lording. It is a written contract that involves a landlord and a tenant and contains details about the rental of the property, terms and conditions, and the obligations of the landlord and the tenant. Having a Rental Agreement is necessary to provide protection among the landlord, the tenant, and the property.
Rental Agreements set proper expectations among renters and help to maintain peaceful relationships between a landlord and a tenant. As with other contracts, a Rental Agreement is legally binding and should be carefully constructed to make sure that it carries all necessary details that need to be incorporated in an agreement. Our Agreement Forms, Rental Agreement Forms, and Standard Rental Agreement Forms can be easily downloaded with just one click and contain all necessary details to make your contract full-proof.
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A Rental Agreement should contain certain clauses that need to be indicated in the contract to make it enforceable and useful. There is no set format for creating a Rental Agreement; however, specific details have to be included for reference purposes. The list below outlines the items that are crucial in a Rental Agreement:
Names of the Tenant and the Landlord
A Rental Agreement should start off with the names of the parties involved – namely, the lessor and the lessee, or the tenant and the landlord. The agreement should also specify who is the landlord and who is the tenant.
Typically, Rental Agreements only indicate one person’s name on the agreement contract. However, most landlords are finding out that doing this limits their options of demanding rent payments from other occupants of the leased space. Nowadays, landlords usually include the names of all occupants to make sure that they are all obligated to abide by the terms and conditions specified in the agreement. This also allows landlords to demand for rental payments from other occupants and does not limit him to only one person.
Length of the Tenancy
Some Rental Agreements renew each month while leases renew after several months or even up to a year or more. It is important that you indicate the length of the tenancy and the date of its expiration to notify the tenant of when exactly he is up for renewal.
Lease Contracts should specify the exact amount that is due each month together with the due date and the preferred method of payment. Penalties for late payments and bouncing checks must also be indicated in the agreement as well to avoid misunderstandings or disputes down the road.
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Advanced deposits as well as security deposits, their uses, and how they will be refunded back to the tenant have to be clearly defined in your Rental Agreement to avoid confusion and misunderstanding between you and your renter.
Repairs and Maintenance
The terms for repairs and maintenance also have to be properly established in the agreement. Tenants have to be made aware of their responsibility to maintain the cleanliness of the property and that incurred damages to the rental unit, whether intentional or unintentional, will have to be covered by the tenant or taken from his security deposit.
Improvement and Alterations
Generally, issues pertaining to the beautification or improvement of a leased space will vary according to negotiations between a landlord and a tenant. Make sure to provide clear and proper terms pertaining to who should shoulder the cost for any changes made to the unit and if any improvements made by the tenant should merit a decrease in monthly rental dues.
Policies and Restrictions
House rules and restrictions such as certain guidelines for pets, the banning of engaging into illegal business within the property, excessive noise, or disruptive behavior have to be clearly defined in your Rental Agreement to avoid trouble among your tenants and damage to your property.
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