Creating a solid lease agreement is crucial for a successful landlord-tenant relationship. Knowing what should be included in a lease agreement ensures that both parties understand their rights and responsibilities. Here are the essential terms and clauses to include in any lease to avoid future misunderstandings.
So What Should Be Included in a Lease Agreement
1. Tenant and Landlord Information
Every lease agreement should start with the basics: the full names of the landlord(s) and tenant(s). Also, include contact information for each party, so communication remains clear and accessible.
2. Property Details
Provide a clear description of the rental property, including its address, unit number (if applicable), and any other relevant identifiers. This leaves no room for confusion about the rental property’s identity.
3. Lease Term and Renewal Conditions
Specify whether the lease is for a fixed-term (e.g., one year) or month-to-month. Clearly outline the start and end dates. For fixed-term leases, include renewal options if applicable and explain the conditions for ending or extending the lease. Being as detailed as possible is going to be most important.
4. Rent Amount and Payment Details
Outline the rent amount, due date, acceptable payment methods, and any applicable late fees. Be specific about where and how to pay rent (e.g., bank transfer, online payment, or physical drop-off location).
5. Security Deposit Terms
Describe the amount of the security deposit, how it will be held, and the conditions under which it will be returned (be very specific). Include information about potential deductions for repairs or cleaning fees, and reference the timeline for return according to local laws. Check with your local real estate attorney or legal team to ensure that all of the information in your agreement is legitimate.
6. Maintenance Responsibilities
Maintenance can be a common area of confusion. Be sure to state which maintenance responsibilities fall on the tenant and which are the landlord’s responsibility. Include expectations for lawn care, appliance maintenance, and minor repairs. For example, if there is a pest issue, outline it in the agreement on who pays for the service.
7. Rules for Property Use
Specify rules on how the property can be used, such as noise restrictions, restrictions on smoking, and rules for parking. If there are shared areas, like pools or gyms, list the rules for access and use. Outline any penalties that will be issued if these rules aren't abided by.
8. Pet Policy
If pets are allowed, outline specific rules regarding their care, any additional deposit or fees, and the maximum number or types of pets permitted. If pets aren’t allowed, clearly state this in the lease. For example, don't just put it in a description in an available for rent that pets aren't allowed. It must be written clearly in your agreement.
9. Entry and Inspection Terms
The lease should include terms for the landlord’s right to enter the property. Explain the notice period (e.g., 24 hours) required for non-emergency visits and the situations where entry without notice is allowed, such as in emergencies. I always do quarterly inspections to make sure that the tenants are upkeeping the property and adhering to the rules of the lease agreement.
10. Additional Clauses
Each lease may have additional clauses depending on the property and landlord’s policies. These might include:
Subleasing conditions
Early termination fees
Consequences of lease violations
Eviction notices - This is something that I now include in my agreements due to having had to evict a tenant. Our local laws support that in a lease agreement we can forgo a 5 days eviction waiting period if it is included in the lease agreement and the tenant signs agreeing to forgo the eviction period. This get's me closer to being able to quickly move to getting a court date to have them formally evicted.
Ensure each clause is specific to avoid misunderstandings. Including these key elements in a lease agreement creates a clear, legally sound contract. By clarifying roles and responsibilities from the start, landlords and tenants can enjoy a smooth rental experience with fewer surprises.
The information in this article are the opinion and experience of the author. Due diligence should be exercised before investing in real estate.
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