We understand the feeling of being a new landlord. The excitement and stress both hit your mind and mostly you as a landlord forget some essentials and specifications that should not be ignored. In this post, we shed some light on what you should be considering in your rental agreement.
Not only the first-time landlords but the experienced ones can also benefit from these points. As said that revising the terms of lease frequently can benefit the landlord as well as the tenant in the long run. Take a ride with us:
Full details of all tenants
Your rental agreement should include the names and contact details of all the residents that are going to reside in your property.
Tenancy term
It should comprise of the terms of tenancy— that is if it is regular or permanent. Frequently, properties are leased on a month on month basis, in terms of say 8 to 10 months, or even yearly. Often, it’s from one date to another date (for example, 1st July 2019 to 31st June 2020). This type of tenancy is known as a fixed-term lease.
On the other hand, it is a periodic lease that can be renewed without signing a completely new contract between the renter or the landlord. The lease remains valid till the time either the renter or the landlord gives a written notice to end it. All the tenancy terms that a Landlord wants to add, should be included in the rental agreement. Whatever be the tenancy terms of your choice, it must be indicated in your rental agreement.
Occupancy restrictions
Rental properties are usually designed to accommodate a particular number of renters. Therefore, you must mention the occupancy limit in the rental agreement. So that it becomes legal and authentic.
Rent rules
The rental agreement should contain the rent amount that the renter needs to pay. It should also consist of frequency to pay the rent. Generally, renter pay rent every month. But there are many cases where the renter pay the rent yearly, hence, the frequency should be mentioned in the tenancy term.
Deposits
Normally, Landlord asks for a security deposit before renting the property. Therefore, if you are asking for a security deposit or charging any sort of late fee on rent payment, that should be included in the rental agreement.
Limitations
The non-permitted area in the rented property, the restricted activities, property damage, prohibit loud noise, etc., should not be conveyed verbally but these limitations must be included in the rental agreement.
Repairs
The best practice to save yourself from any sort of confusion regarding repair and maintenance, it is always advisable to include a repair and maintenance clause in the rental agreement. This clause should mention who is responsible for what sort of repairs and to maintain the property what kind of measures should be followed by the renter. These details in the rental agreement will save the renter and the landlord from any sort of miscommunication or disagreement.
The rental agreement plays a vital role while renting the property to a renter. Thus, it should be created keeping in mind every possible thing that can occur between landlord and renter or in the property. These points will eliminate the chances of ending into a hot discussion with your renter or any sort of disagreement.
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