A Tenant Agreement is a written contract between the landlord and the tenant. It stipulates the important details pertaining to the lease of a rental unit, such as the amount of rent due each month, the terms of payment, terms and conditions, as well as tenant and landlord obligations.
Tenant Agreements have to be written to make them enforceable by law. Considering that a Tenant Agreement is a form of contract, it is therefore legally binding and may be used in the court of law if a dispute or a misunderstanding arises between the landlord and the tenant.
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Having a Tenant Agreement is important in the land-lording business because it creates ground rules for both the tenant and the landlord to maintain peaceful business relationships. Below is a list of reasons as to why you need a Tenant Agreement when renting or renting out property.
The Advantages of a Tenant Agreement
Tenant Agreements serve as a means of protection for the landlord because it allows him to properly establish the terms and conditions of the rental. These terms could range from repair and maintenance rules, to proper garbage disposal, and terms of payment.
Rental Lease Agreements also safeguard a tenant’s interests because these help to ensure them of fixed rental costs and that increases to the monthly charges for rent should require notification and an explanation for the basis of the increase prior to it being applied.
Because a Rental Lease Agreement is a legally binding contract, it also obligates both parties to adhere to the terms and conditions being indicated in the contract and can be used as grounds for legal disputes when part of the contract is being breached.
The Contents of a Tenant Agreement
Full Names of the Occupants
Rental Contracts should include a list of all the names of all the occupants in a rental unit or a leased space. This makes all occupants obligated to pay the rent and abide by the terms and conditions stated in the Tenant Agreement. For example, if one of the occupants listed in the agreement is unable to pay the rent that month due to sudden unemployment, you can still demand for payment from the rest of the occupants because their names also appear in the contract.
Include the Number of Occupants Allowed
Another way to set proper expectations among your renters is to establish a clear rule for the allowed number of occupants within one rental unit. The occupants should only be the people whose names are listed in the contract and their children. Applying this rule on your Tenant Agreement will guarantee you that the only people residing in your rental space are those who have been properly screened.
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Indicate the Duration of the Lease
Tenant Agreements should specify the length or the duration of the tenancy. If the tenant is just renting, the rent typically renews each month while a lease, on the other hand, renews after several months or years.
Rental Dues and Payment Schedules
The amount of rent due should also be placed in the Tenant Agreement along with the schedule of payment, the mode of payment preferred, and any penalties for late payments or bouncing checks.
Advanced deposits and security deposits, their uses, and how they will be refunded have to be clearly defined in your Tenant Agreement. Doing this helps to avoid misunderstandings and confusion between you and your tenant down the road.
Repairs and Maintenance
The terms for repairs and maintenance also have to be properly established in the contract. Tenants have to be informed that it is their responsibility to maintain the cleanliness of the property and that incurred damage to the property, whether intentional or unintentional, will have to be covered by the tenant or may be taken from his security deposit.
House rules and restrictions such as certain guidelines if a tenant has a pet, illegal business, 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.
Constructing Tenant 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 Sample Tenant Agreement Forms and Sample Tenancy Agreement Forms to help you save time and do away with the tedious work of having to whip up an Agreement Form from scratch.
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