A rental lease agreement is a document that outlines the terms and conditions of a tenant’s occupancy to a rental property. It protects both parties by setting expectations and firming up the rental property’s rules and requirements. The following are five tips for creating a rental lease agreement.
Collect Each Party’s Biodata
The first step is to fill out your official names, phone contact, email address, and postal address that you may wish to receive future communication. The same information is requested and filled for co-owners of the property, property managers and agents, and all tenants who sign the lease document. Adding information about dependents living in the rental property is critical.
Include the Property Information on the Lease Agreement
The second process is to include all relevant information about a property. There are two types of rental properties: single-family and multi-family homes. Single-family homes are ideal for few occupants and are commonly called townhouses. Multi-family homes host many families commonly referred to as mother-in-law suites, apartments, duplexes, condos, and basement apartments. No matter the kind of property you select, you will want to collect information about the address or location, membership to homeowners or condo associations, any defects on the property, appliances, fixtures, and furniture installed at the time of moving in.
Consider Available Property Utilities and Services
You will need to firm up on occupants’ provisions of that rental property. Utilities and services may include electricity, water, heating services, trash handling and disposal, snow removal and landscaping services, etc. Should you decide to cover the costs of these services, the lease agreement should indicate so.
Knowing the Terms of Your Lease Agreement
The lease term outlines the length of the lease, the consequences of a breach, and the conditions in which a tenant may opt to leave early. The lease agreement should clearly state the termination date if time-bound or conditions precedent. The contract should also clearly explain the clauses leading to the eviction of a tenant. You should consult with an eviction lawyer in the area for better understanding before signing the document.
Wind up the Agreement
The last step is finishing up the lease agreement by outlining the agreeable date of payment of the rent. You will also want to set a regular rental rate consistent with your area and comply with state-specific rental control laws.