Did you know that there are more than forty million rental units in the United States? If you’re a landlord then that means that you have a lot of competition to deal with.
By having a solid rental property lease agreement, you’ll be able to make sure that you’re selecting quality tenants and protecting yourself in case something goes awry.
But if you’re not a lawyer or if you’re a new landlord, you might not be sure how to write a lease agreement. Luckily for you, we’re here to help with just that. So keep on reading and we’ll take you through everything that you need to know when it comes to writing a lease agreement!
- Title and Format the Agreement
The first step that you need to take is outlining the document. You should begin with the title. “Lease Agreement” will suffice.
You’ll then need to come up with the overall formal for your document. Use headers and subheaders to make clear and concise sections. You want your lease agreement to be clear and easy to follow.
- Names of the Tenants
Every single person who is going to live in the unit should be listed as a tenant and should sign the lease. By making every adult occupant an official tenant, they will be legally responsible for paying the full amount of the rent and following all of the rules in the lease.
If one tenant leaves town and doesn’t pay the rent, you will be able to seek the whole rent from the other tenants. Also, if a tenant violates the rules, you’ll have the ability to evict all of the tenants.
You should consider writing in an occupancy clause that says that only tenants and their children can stay in the unit. Set a certain number of days that guests can stay.
You don’t want someone to move in who isn’t on the lease because you haven’t vetted them and they are not as legally responsible.
- Description of Rental Property
You want to add the full address of the property, including the building and unit. You should also point out any specific storage places or parking spots that are going to be included.
You will also want to write down all of the places where your tenants are not allowed to enter.
- Rental Price
You shouldn’t simply write in the amount of rent and how it should be paid. You also need to include what methods of payment are acceptable. The lease should also state if you charge a late rent fee, how much the fee is, and if there is a grace period.
If the rent check bounces are there fees for that too?
- Security Deposits and Fees
In your lease agreement, you want to add the dollar amount for the security deposit. You should also write how you might use that deposit and how it won’t be used.
Do you expect the tenant to replenish the deposit if you need to make a repair during the tenancy? When and how are you going to give the deposit back?
- Maintenance and Repair Policies
It’s advisable that you clearly state what your maintenance and repair policies are. Make sure that the tenants know that it’s their responsibility to keep the unit sanitary and clean and to pay for any damages that they cause.
The tenants need to let you know if there are dangerous or defective conditions. If they need to talk to a property manager, make sure they know that.
Also, when hiring a property manager, you need to know what to look for, including organization and communication skills. A bad property manager can do more damage to your property than bad tenants.
- The Right to Enter Rental Unit
You never want your tenants to claim that you are violating their rights to privacy or entering the unit illegally. Your rental lease agreement should state when you have the right to enter the property.
For example, you might need to provide notice the day before coming if you are going to make a repair or show the unit to potential renters.
However, you might not be able to give a notice in advance if an emergency arises.
- Rules and Important Policies
Do you have any rules or regulations that are so important that you’ll evict the tenant if they break them? If so, you want to include those policies in your lease.
In most rental agreements, landlords tend to include rules against illegal activity, smoking, and pets.
It’s always a good idea to clearly state what your policy towards pets is.
- Contact Information
Your tenants are going to need to be able to either contact you or the property manager when an issue comes up. You should give the appropriate contact information and also write how you want your tenants to contact you based on the issue.
For example, they can call you if it’s an emergency but they should email you for more minor concerns.
Writing the Perfect Rental Property Lease Agreement
When you’re writing your next rental property lease agreement, you want to make sure that you are clear and include any information that you deem important. When you and your tenants are all on the same page, you’ll have a much easier time ensuring that everything goes smoothly.
Are you looking for other helpful articles like this one? Check out the rest of our site today for more!