A rental or lease agreement is the basis of the tenant-landlord relationship, and certain terms must be in each agreement you sign or create. This document is the legal contract between the landlord and every tenant that occupies a rental space.
Therefore, it serves as the rules by which tenants live in while defining the repercussions in case they break the rules. It’s imperative that this document features the essential elements to offer security to the landlord and renter. Here’s a list of the things every rental agreement should comprise.
1. Clause on Security Deposit
Your agreement must require the renter to provide a security deposit that matches a month’s rent or more, depending on the worth of repair costs and furnishings in case something goes wrong.
A number of states require the property owner to place the renter’s security deposit in a different interest-bearing account and return the deposit at the end of the lease, along with interest minus any damages.
Ensure you comprehend the regulations and laws in your area and have your real estate lawyer review the agreement to save you money and time. Remember, security deposits can be problematic if not handled appropriately.
2. Repairs and Maintenance
Both the tenant and landlord have duties to maintain the premises, so the agreement should spell out both parties’ obligations. Renters usually have a responsibility to maintain cleanliness on the premises and are liable for any damage caused by abuse or neglect.
Landlords, on the other hand, are responsible for maintaining a livable property and facilitating repairs that aren’t caused by the renter (for instance fixing a leaky roof or heater). The agreement should develop an obligation for the renter to contact the landlord for repairs as soon as any problem arises.
Furthermore, the tenant should have contact information to ensure the repairs take place fast and in a cost-efficient manner.
3. Term
Renewal is a significant consideration for the rental agreement. Otherwise, after the initial term, unique rules can apply that control matters such as rent hikes. While some forms comprise a stipulation for automatic renewal, the review of this clause should occur with care.
That stipulation may extend a good tenancy or lengthen a bad one. Numerous proprietors prefer those agreements be renewable for another full term instead of month-to-month. This enables more control over the subsequent vacancy date while offering an out when a renter misbehaves.
4. Subleasing Clause
At some point, most property owners have a renter who wishes to sublet the rental to a stranger or friend. To prevent trouble, the agreement should comprise a subletting clause that requires you to obtain permission from the landlord before turning the rental to somebody else.
Therefore, when you seek permission to sublet the rental, the landlord will be in a position to accept or decline your offer.
5. Alterations to the rental
The agreement must describe the alterations you may make to the rental.
6. Pet details
The agreement must specify whether you can accommodate a pet in the premises. The agreement should also specify the limitations on size, number, and species. If there’s an extra deposit needed for a pet, the amount should be in the agreement.
7. Right to Entry
The lease should spell out the conditions under which the landlord can enter your unit. Beware that state law controls when and how a landlord can enter a rental unit. Therefore, ensure the terms comply with state law.
8. Occupancy limits
Ensure the agreement spells out the people who can reside on the property legally. This prevents you from moving in with friends and relatives illegally.
Final Thoughts
Failing to specify the expectations and requirements in the agreement is one of the more common mistakes landlords make. The best way a landlord can safeguard his or her investment from possible renter trouble is to develop a solid lease agreement.
It’s also important for renters to be informed of the agreement to ensure compliance. If you’re new to renting, this guide reveals the things that should be in your lease agreement.
For more information on what your rental agreement should include, contact us at Apartment Agents or leave a comment.
