Explore the best lease conditions to have in your rental contract to ensure clear communication between you and your tenants
As the contract that binds owners and their tenants to a property, a lease agreement is essential for clear communication between renters and landlords.
From the length of the lease to the policies of the property, every rental agreement needs to include key lease terms for the owner and renter relationship to be well understood.
Join us as we detail the best leasing terms to include in your rental agreement.
#1: Identity of parties involved and address of property.
First and foremost, it’s essential to include the legal names of the parties involved and the full address of the property being leased. This ensures that the agreement is in full recognition of the property and its subordinates, preventing any confusion about who’s involved with the property going forward.
By not including this vital piece of information, tenants could house as many people as they’d like without consequences due to the lack of clarity in the lease agreement. Be sure to also include signatures by every clause in the lease agreement from each party to ensure full understanding.
Rental lease agreement terms, explained
#2: Term length and costs.
Rental agreements need to state how long the lease will last and related costs.
Spell out all the details like cost of rent, due dates for monthly payments, and any required security or pet deposits. Specify the dates that the renter has the property so that there is a clear expectation for move in and move out.
There is a major difference between a month-to-month and fixed-term lease agreement. Ensure your rental agreement specifies this, so that the tenant knows what they are agreeing to and describe any implications such as early termination clauses.
#3: Rules and maintenance policies.
Leasing terms should be clear about the responsibilities your tenant should follow.
For example, if the property needs to be kept at a sanctuary standard, provide details on what that should be. Another instance to include is if there is a limit of people allowed to be living in the property at once; identify that number to prevent hazardous living conditions.
Don’t forget to include any restrictions required by federal and state laws. By having apparent clauses and rules, everyone attached to the lease will have a better understanding of their responsibilities and the validity of the regulations.
How to understand a lease or rental agreement
A well-written rental agreement includes clear and definitive lease terms that solidify the expectations from both the property owner and tenant. After every term is over, take time to review previous lease agreements to find room for improvement or clarification.
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