10 Essential Rules Every Lease Agreement Should Cover

Over the years, because of financial concerns, many people have leased or rented properties instead of buying. Also, some people find it more convenient to rent a house or condominium rather than purchase one.

A lease agreement is crucial in the tenant-landlord relationship. The lease lays out the rules that will be followed by both parties during their business relationship. It is a legal document that states all the necessary clauses such tenure, rent amount, deposit amount, etc.

The purpose of an effective lease agreement is to safeguard the interests of both parties and ensure there is no communication gap that can lead to any kind of litigation.

The 10 essential rules that your lease agreement must cover are:

1. Name of the parties involved. The names of all the adult tenants and the landlord should be clearly stated. This confirms the landlord will receive the rent money while making all the adult tenants liable to pay the amount. In case one tenant fails to pay, the landlord can claim the rent from the others. In case all the tenants fail to pay, the landlord has the right to cancel the lease agreement. The agreement also specifies that the property is leased only to the people who have signed the agreement and their minors and dependents. Background checks of the adults act as a security measure.
2. Tenure of occupancy. The agreement should clearly specify the period for which it is valid, the start and end date of the agreement, and the terms of renewal. The clauses under which the agreement becomes void should also be stated. Law firms like Express Evictions help in evicting the tenants if the need arises. If it is your first eviction, we advise you to hire a lawyer to help. Also, if you’re too busy to manage the eviction, eviction services can handle it right the first time every time to ensure a steady flow of rental income.
3. Property’s description. The address of the property and whether the apartment is furnished. It is the legal responsibility of the tenants to maintain the property while they are residing there. If the landlord wants to impose conditions like fixing the air-conditioning or a chimney, then that is also stated in the agreement. The agreement also says who bears the cost of maintenance and to what extent.
4. Rent amount. The lease agreement contains the amount, due date and the mode of payment. To avoid any unnecessary complications, it is better to state:

• The acceptable mode of payment, such as cash, bank transfer or check.
  • The date rent is due, usually the first week of the month. In case of failure to pay within the specified time, if there is may be a late fee.

5. Deposit. In many cases, the security deposit turns be out to be reason for concern at the end of the contract. So, it is ideal to state the following clearly:

• The amount of security deposit.
  • How the amount can be used, like for major repairs or the last month’s rent.
  •   If any amount is supposed to be deducted from it if the tenant damages the property and the landlord needs to do repairs..
  •    The mode of returning the deposit amount.
  •    The date on which the refund is due back to the tenant and the penalties forbeing late..

6. Modifications to the property. It should clearly mention if the tenant is allowed to make modifications to the property and to what extent.
7. Landlord’s permission to enter the property. To keep a check on the property, the landlord should have the legal right to enter the rental unit with prior notice. This clause should be well stated to avoid any miscommunication.
8. Details related to pets. The agreement should specify:

• The permissibility to keep a pet.
  • Number, size, and type of pets.
  •    Security deposit (if any) for the pet.

9. Restrictions on activities. To avoid legal complications, clearly specify the kinds of activities forbidden, like opening a shop or business in a residential complex.
10. Visitors’ specifications and general guidelines. The tenants should not cause trouble to the neighbors. If necessary include a clause limiting the number of visitors. The landlord can also seek to ensure that no miscreants enter the property and no illegal activity is carried out.