A rental agreement specifies the rules that tenant and property owners agree to obey. It is a legal document that includes important business details, covering aspects like the monthly costs and if there are any restrictions on the property.
Crafting a solid rental agreement is the best way to safeguard your investment from any tenant troubles. Here are the most important terms you should include in the document:
List of Tenants
All adults living in the property should be named as tenants and sign the rental agreement. This makes all adult occupants responsible for upholding the terms and conditions stipulated in the agreement, including the proper use of the rental property.
Amount of Rent Due
The agreement should mention the exact amount of rent, its due date, and acceptable methods of payment. It is also important to include other important details such as grace periods for late fees and additional charges in case a check bounces.
Security Deposits and Other Fees
Be clear on the limit and use of rental fees to avoid arguments and legal issues. Apart from defining the deposit amount, the agreement should also include how the deposit can be used and how it will be returned after the tenants decide to terminate the agreement. Property management experts suggest checking your state’s laws about deposits for a better idea of the time periods for returning the money.
Restrictions on the Property
The lease agreement should include restrictions that prohibit troubling behaviors such as excessive noise or illegal activities. It should also specify special requirements for pets, bringing additional roommates, and other occupancy rules.
Right of Access to the Property
Specify your legal right of access to the rental property and how much advance notice you will provide the occupants before entering the property. Through this, you can avoid claims such as violation of privacy and illegal entry.
Know your state’s laws on terminating a lease and specify those details on the agreement. The termination notice may specify that the tenancy is over and the occupant may need to vacate the property to avoid an eviction lawsuit. If you’re evicting a tenant, it is not enough that you know the rules; consult an attorney so you won’t find yourself on the wrong side of a lawsuit.
Secure your rental business and property by crafting a solid rental agreement. You can also work with a reliable property management expert to help you find the right tenants and protect your property and relevant interests.