Leasing a property is more than just finding a tenant and then collecting rent. There needs to be a solid lease agreement that is agreed to by both parties. Failure to have a lease can make it harder for a landlord to pursue damages against a tenant, or for a tenant to pursue their rights against a landlord. With that said, what should be included in a lease agreement template?
Name And Contact Information Of All Tenants
As a landlord, you need to know who is renting your property and how to get in touch with them. If there is a problem with the premises, or a tenant fails to pay rent, you need to make sure you can get in touch with that tenant. If anything were to happen, and there was no communication, it could lead to problems down the road for all parties.
Is this a month to month tenancy, or is there a lease period involved? For a month to month tenancy, the landlord or tenant reserve the right to terminate the arrangement with 30 days notice. Most leases will run for a fixed amount of time, usually 1 year. Knowing this ahead of time will eliminate confusion and clarify the responsibility of each party.
Rent Amount And Penalties For Failure To Pay
There should be an itemized rent statement in the lease agreement template. Rental amounts per month, and the total for the entire year should be included. If any security deposit is needed, the amount paid should also be reflected on the lease agreement. This will ensure that both parties understand how much is owed and what the terms are for failure to pay rent.
Right To Enter Property
A landlord has the right to enter a property with 24 hours notice given to tenant. Make sure this is stated on the lease agreement template so that your tenant cannot claim you violated his right to privacy.
Your Lease Is A Legal Document
Make sure that all parties sign the lease and that all parties are eligible to sign the lease. Usually a lease is only signed by anyone over the age of 18 as minors cannot be held to any contract. If the lease is not signed by all the tenants, it cannot be enforced in court should anything happen.
Your responsibilities as a landlord go beyond just making sure your place is occupied and that you are getting paid. As a landlord, you must spell out what rights you have to your property as well as what your expectations are of your tenant, no matter what type of lease agreement you have. Most tenants are responsible and will pay the rent, but if not, you need to make sure you have some recourse available to you.