The rental agreement establishes the ground conditions for the lease between the landlord and the renters. It is a legal contract that protects both parties. In addition, the rental agreement also establishes what is the legal recourse in case someone breaks it. However, a rental agreement can also help you find the right tenant for your rental. You just need to make sure that your potential renters understand and agree to it. If all the rules mentioned in the contract are understood and accepted by the renters, you just might have found the perfect tenants. Furthermore, there is a good chance that you will prevent conflicts and disagreements by making a good contract. As a result, we made a list of 6 rules you should include in the rental agreement.
Continue reading to find out which they are and whether you should include them in your contract.
When you sign a contract with someone, you need to know who that person is. Signing a rental agreement is just like entering business with someone. So, make sure that you have the full name of the tenants and their contact information. If it is a couple, they should both be named, and both should sign the contract. By doing so, they both become legally responsible for all the terms. As a result, even if one of the renters fails to pay the rent, you are covered. You have the legal right to demand full payment from the remaining tenants.
In addition, you should clearly state how many people can reside on your property. If it is a couple with a child, specify that they are the only ones that can live there. And that if they have visitors, their guests can't stay longer than the agreed number of days.
Landlords typically need security deposits to guarantee that tenants adhere to the conditions of the lease. If everything goes well, you can return the deposit at the end of the lease. However, this deposit is a common source of dispute between landlords and renters. So, in the rental agreement, try to be clear and detailed about the terms of return for the security deposit. The main reason for this is that you will use the security deposit to repair any damage caused by the tenants. If there is no damage, you can return the whole amount. If there is a need for repairs, you use the deposit to pay for them and release the remaining amount. Just make sure that the local rental housing laws allow you to request such a deposit and that you are aware of its limitations.
One of the rules you should include in the rental agreement is that the due date for the rent needs to be respected. Mention how frequently you want to receive your rent and how you like to receive the payment. For instance, you can ask for a monthly payment in cash. Or, if you want a different payment method or frequency, you should state it.
Also, you should be very clear about what happens if the due date passes and your tenant is late with the payment. For example, you can include penalty fees when payments are made late. That will discourage your tenants from crossing the due date too often. In addition to making the due date clear, make sure you agree on the rental price. And, if you need to increase the price, make sure to provide your renters with a written notice on time.
Inform your tenants if and how they can make changes to the property and if they need to ask for permission in advance. Also, make it clear if they need to restore the property to its former condition when they leave. That can be very helpful in avoiding later misunderstandings.
In addition, you need to be very specific about which type of renovation they can make. Do you allow repainting the walls or removing the wallpaper, or would you prefer them not to do it? At the same time, you need to be open and listen to your tenant's needs. Some changes they might ask for can make their lives more comfortable. For example, if the rental property is a smaller apartment, they may need you to provide extra storage space. So, you need to help your tenants find the perfect in-home storage solutions that would solve their storage problems.
If you want to have a good relationship with your tenants, you must be open and honest with them. Therefore, you should state from the beginning what the maintenance and repair policies are. For example, you could require renters to keep the property clean or take out the trash. However, if there are damages that tenants didn't cause, you should make the repairs. At the same time, you can make these repairs only if the renters notify you on time that they are needed. So tell them what they need to report and how long it will take you to fix the problem. For example, you could note that you would make every effort to handle emergencies within 24 hours and non-emergencies within two days.
Some landlords will accept pets, and some will not. It depends on your wishes or the building administration. However, if you want to allow your tenants to bring pets, you should be very specific about them in the rental agreement. For example, you should specify how many pets they may bring and what type and size. Also, if you allow your tenants to have a dog, you should notify them about the rules for caring for the dog on your property. Mention if they need to put on a leash when walking the hallways and that they have to keep the yard clean of animal waste. But, if you don't want to risk having problems with your renters and their pets, you can opt for a no-pet policy. Just make sure that you mention it among the rules you should include in the rental agreement.
These were just some of the rules you should include in the rental agreement. If you add any, make sure they are clear and detailed, and they follow the law. Also, remember that the contract protects both you and your renters, and it will help you clear up any misunderstandings. Therefore, make sure that what you state in the agreement can't be misinterpreted.