A rental agreement is a legal document, which settles down the rules and regulations to follow by both the landowner and tenant party. It is very important for both the parties, as it contains essential business details. If any of the point is not observed by any of the parties, the opponent can apply for a lawsuit for violating the legal system. Irrespective of the size of the lease document, it should cover the most important aspects to strengthen the landowner and tenant relationship. Here is a list of items which you should include in your lease agreement:
1. The full and legal name of the tenant should be present in the rental agreement. One or more people can be the part of the lease and all of them are equally responsible for all terms and conditions of leasing.
2. The agreement must depict the term or period of lease. A normal agreement is normally for 11 months. It will depend on your plan for how long the property is going to be rented.
3. The rental agreement must specify the amount of rent, due date and the way of payment. It is better to clarify the details like suitable payment methods as personal checks or if there is any penalty for not paying rent within the due date or any fine for bounced checks etc. If it is not specified in the agreement, you can not penalize tenant out of your own.
4. Clearly specify in the agreement about the amount of security deposit, how you are going to use the deposit like for repairing works or something else. Also mention that the tenant can never use the money for paying the rent. If you accept any legal non refundable fee for cleaning or pets, mention that too clearly. The rental agreement must state how and when the deposit is going to be returned, with or without interest and in which condition the deduction will be applicable.
5. The agreement must clearly specify the responsibility for repairing and maintenance for you and your tenant. It must be mentioned that the tenant is fully responsible for any kind of damages caused by his negligence.
6. It is better to clarify your legal right to enter into the premises, by specifying the number of days notice will be given in advance for accessing your property.
7. You should explicitly mention in the rental agreement that the tenant should not be involved in any illegal activities within your premises.
8. Also, the tenant should not indulge in any unruly behavior which could disturb the neighborhood like excessive noise etc.
9. Mention in your agreement whether or not you allow pets with the tenants. In case you allow pets, then specify any restrictions for pets which you want to apply, like the number of pets or type of pets etc.
10. Finally, the agreement should contain all relevant laws including health and safety rules, occupancy rules and specific state laws.
Still unsure on the rental agreement format? Let us do the work for you! Prepare your Rental Agreement today.