A rental agreement is a written contract between a landlord and a tenant. Rental agreements are legally binding and is a type of paperwork that formalizes the agreement of the landlord to rent out the space to the tenant and the tenant’s obligation to abide by the set terms and conditions stated within the contract.
Having a rental agreement is necessary to make sure that the interests of both the landlord and the tenant are protected and to maintain a peaceful relationship between the landlord and the renter. Our Sample Agreements can help you get started on whipping up a rental agreement for your land-lording needs.
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Having a rental agreement also enables landlords to set clear and proper expectations among his renters prior to their occupancy and is a tangible proof or reference when disputes or a litigation arises down the road.
Constructing a Rental Agreement Form is not a difficult thing to do, in fact, tons of rental agreement forms can be easily downloaded online. However, in order for you to protect your business, you have to make sure that your rental agreement is foolproof and contains all the necessary details such as the following:
Names of All Occupants
A rental agreement should first of all contain the name of the landlord and the tenant. Typically, if the occupants of a rental unit is a group or a family, the name indicated in the agreement is usually the name of the primary tenant. However, landlords have found out that it is wiser to indicate the names of all the occupants in the rental unit other than that of the primary tenant.
By doing so, all occupants of the property are automatically obligated to abide by the terms and conditions stated in the contract and also allows the landlord to demand rent from other occupants if the primary tenant is incapable of paying the rental dues.
The Duration of the Tenancy
The start date and the end date of the tenancy has to be clearly stated in the contract to give the landlord and the tenant a clear idea of when the rent is up for renewal.
Monthly Dues and Fees
The amount of rent due each month also needs to be specified in the contract as well as other payable items such as advanced deposits and security deposits.
Advanced deposits and security deposits need to be properly defined in terms of refund and instances wherein a refund is forfeited.
Payment schedules, preferred modes of payment, as well as late fees, and penalties for bouncing checks also need to be indicated in the contract.
Maintenance, Repairs, and Add-ons
It is generally the property owner’s responsibility to make sure that the property is in good condition while it is the tenant’s responsibility to look after it and make sure it is damage-free. If the damage was incurred by the tenant, they may have to pay for the cost to repair the damage or it may be taken from their security deposit.
Some tenants also wish to conduct renovations or improvements to a rental property. If this happens, it is important that the tenant understands that the improvement will remain to be the property of the landlord especially if the improvement done is a non-removable fixture.
You can easily download our Generic Lease Agreements to make sure your lease or rental agreement covers all the necessary information to help you save on time and money.
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