Are you planning to rent your property? As a property owner, you must be very careful while leasing it to someone. One wrong step on your part could put you in a lot of trouble. That is precisely why a solid rental agreement is so crucial before leasing your property to someone.
The rental agreement must contain detailed information about the responsibilities of both parties, including clauses, policies, and the disclosure about their relationship. The rental agreement must be made so that it can be used at any time to take action in various situations.
But what if you want to make the rental agreement on your own? Will you be able to create a solid rental agreement? For that, you must know everything about rental agreements. This article will discuss everything you need to know about making a solid rental agreement, so you can lease your property without any worry.
What Is a Rental Agreement?
A rental or lease agreement is a contract between the landlord and the tenant. This agreement includes all the responsibilities of both parties. Furthermore, it acts as firm grounding documentation for a fantastic tenancy.
The main aim of a rental agreement is to clear any confusion regarding the leasing of the property between both parties. Apart from that, the agreement also contains detailed information about the property being leased, fees payable, and both parties’ signatures stating that both agree to the clauses. In case of discrepancies, the contract will help in resolving the issues.
For example, if something breaks, who is responsible for repairing it? Is it the tenant or the landlord? There is no place for such confusion once the parties have signed a legal rental agreement.
Who Needs a Rental Agreement?
As the name suggests, a rental agreement is needed by a property owner who wants to lease their property. Not only do landlords planning to lease their whole property need one, but also those who want to lease a part of their property (for example, a bedroom in their apartment).
A rental agreement is also essential if you have given the responsibility of your property to a property manager who, in turn, has to lease the property on your behalf.
Things To Include in the Agreement
If you are making a rental agreement, there are certain things that your lease agreement must include, such as:
Information of the Parties Involved
The agreement must have accurate information about both parties (the landlord and the tenant). Apart from that, the specific address of the property must include the apartment number, door number, and other such things. It must also contain information about pet-related policies.
Rent Due Date
To avoid confusion, the date within which the tenant needs to clear the due rent must be mentioned in the agreement. It must also contain a penalty amount for late payments.
The agreement must also contain the date on which the agreement starts and expires. It must also contain stipulations for the visiting guests. Furthermore, it must also contain details about the charges the tenant would have to pay to leave the contract early. Apart from that, if you want to retain your tenant, you must install a technologically advanced security system on your property.
Amount of Rent
The rental agreement must also include the specific amount of rent that the tenant needs to pay every month or every year. It must also include additional charges for parking and other such maintenance fees separately. Furthermore, it must also contain the agreed payment method. You can also charge your tenant a good amount of rent by making your property impressive.
Signature of Both Parties
At the end of the agreement, both parties need to affix their signatures to show their consent.
Clauses and Policies of a Rental Agreement
The rental agreement must clearly state your choices, preferences, and decisions. Some of the policies and clauses that it must include are:
The tenant must be able to enjoy their time on the property without having to worry about the landlord’s intervention. The agreement must contain criteria for the owner to take control over the property.
The policy regarding whether the tenant can sublet the property to another person and share the apartment must also be mentioned in the agreement. It must also contain the procedure the tenant must follow before subletting the apartment to someone else. For example, submitting a formal request to the owner first before subletting.
Breach in the Lease
The agreement must also contain circumstances under which the tenant can break their lease.
Another necessary clause in a rental agreement is the issue of security deposits. The tenant has the right to know where the security deposit has been kept. And if the security deposit has been kept in an interest-bearing account, the tenant has the right to know about it. The tenant must have proper details about the security deposit.
Having a legal agreement for any property-related issues will keep your property safe. Whether for leasing your property, buying it, or selling it, an agreement with defined clauses and policies is a must. Whether you are looking for houses in LA or any other part of America, make sure to get a good agreement.
A lease agreement that includes every little detail will help you with a successful tenancy. With a signed contract, you will be aware of your responsibilities. A signed rental agreement is the only solution to tenancy disputes.