Rental Agreements play an important role in the business of rental properties. Lease or Rental Agreements help to establish ground rules for both the landlord and the tenant in order to maintain a peaceful tenant and renter relationship.
Like all other types of Agreement Forms, Rental Agreements are considered to be legal contracts that carry pertinent information about the rental, such as as the amount of rent due every month. Although establishing a written Rental Contract is not necessarily required by law, having one creates an edge for a lot of practical and important reasons.
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The Advantages of a Rental Contract
Rental Lease Agreements are contracts made between a landlord and a renter. Rental Lease Agreements provide protection and security among both the tenants and the landlords. Lease Agreements allow a landlord to properly set payment terms and house rules for the tenant and also serve to ensure the tenant that prices for rent will not increase without prior notice.
Rental Lease Agreements are also legally binding and therefore obligate both the tenant and the landlord to follow its terms and conditions. Apart from added security on both the tenant and the landlord’s best interests, Rental Lease Agreements also serve as a documentation and a reference point for the rules laid out in the contract, such as a tenant’s duty to pay rent on time and a landlord’s duty to attend to any maintenance and repair needs of the property, especially the ones that were not incurred by the existing tenant.
What to Include in Your Rental Agreement
Names of the Tenants
Whether you’re renting out a room, an apartment, or a condo, your rental agreement needs to include the names of all your tenants living in one rental unit. Listing down the names of the tenants inside one leased space makes them legally responsible for the rent, the proper use of the property, and legally binds them to follow the terms and conditions indicated in the contract.
Limits on Number of Occupants
A well-established Rental Agreement should clearly indicate the number of occupants allowed in one rental unit. If it is a room, it may only be good for one or two tenants. Your agreement should clearly indicate that the residents of the rental space are only those who have signed the contract. Implementing this clause into your agreement guarantees that its occupants are only those whom you have screen and approved.
Duration of the Tenancy
Rental Agreements should specify if the duration of the tenancy is a mere rental or if it is a fixed-term lease. Rentals usually renew every month while a lease typically lasts for several months or a year.
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Rental Dues and Payment Schedules
The next most important aspect of your Rental Agreement should be the amount of rent due. The amount due should always go together with the specific date that the rent is due and the mode of preferred payment, such as via online transfers, personal checks, or cash. It would also be a good idea to include penalties for late payments or bouncing checks to set proper expectations on your renters. Indicating this in your contract helps to avoid late payments as well.
Advanced deposits and security deposits have to be clearly defined in your Rental Agreement to avoid confusion and misunderstanding down the road. It is best to indicate the purpose of the deposit and when or how it will be refunded back to the tenant.
Repairs and Maintenance
By clearly establishing a tenant’s rules and responsibilities with regard to a rental unit’s repair and maintenance, tenants will be able to clearly understand the terms pertaining to their security deposit. It should be properly set that a tenant is responsible for maintaining the property’s cleanliness, and proper procedures when reporting or complaining about a repair or maintenance work should be laid out.
Restrictions such as disallowing pets, illegal activity, excessive noise, or disruptive behavior have to be clearly set out in a Rental Agreement to avoid trouble among your tenants and damage to your property.
Constructing Room Rental Agreement Forms, Rental Agreement Form, and Room Agreement Forms can take time. You’ll want to make sure that your Agreement Form covers all the necessary details that should be found in an enforceable contract. Download or print our Free Rental Agreement Forms to help you save time and do away with the tedious work of having to whip up a contract from scratch.
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