“The Home Lease Agreement Terms That Property Managers Should Consider”
Are there specific terms that should be included in a home lease agreement?
Simply writing a lease agreement with the use of a template is not good. You need to equip yourself with the right knowledge before creating one. This starts with knowing what a home lease agreement is all about.
It’s not just the definition that you need to know. You should also understand the home lease agreement terms that you’ll include in your agreement. This will help you ensure that you will not miss out on important terms that may otherwise cause you major headaches in the future.
In this article, we will discuss these various terms that need to be included in a home lease agreement.
A Guide On Understanding Home Lease Agreement Terms
Your home lease agreement is a legal document that contains the rules that need to be followed by the tenant and the property manager during the tenancy of the rented property.
Understanding the terms and clauses that the agreement should cover will minimize the misunderstandings and damages that could be done to the rented property.
Before we elaborate on these important clauses, we will discuss the definition of a home lease agreement.
What Is A Home Lease Agreement
A home lease agreement is one of the most important documents for landlords, property owners, and property managers. This contract allows the tenant to occupy and use the home for a specific period of time in exchange for a certain amount of rent.
The lease agreement serves as the written proof that the landlord and the tenant have settled on specific terms and policies for renting out a property. This is usually given and signed before the actual start date of the tenancy.
Providing a home lease agreement is vital because it protects the interests of both parties. It contains the rights and responsibilities of both the property manager and the tenant, preventing misunderstandings that may potentially lead to lawsuits.
The Essential Home Lease Agreement Terms
The answer the most common questions regarding the tenancy can be found in the agreement. Therefore, when creating and sharing a home lease agreement to your tenant, it should contain the following:
Parties To The Lease
The lease agreement should contain the name of the landlord, property manager, and tenants who are bound by the agreement. Anyone who is involved in the tenancy should sign the agreement, as well as the individuals authorized to manage the property.
Description Of The Property
Your home lease agreement should have a description of the property that will be rented and controlled by the lease agreement. It could be as simple as the address and apartment number.
However, it would be advisable to give details about the condition of the property before the start of the tenancy.
Terms Of The Lease
The amount of rent due should be included in the agreement. Provide the necessary information regarding the rent by writing the day of the month payment is due, where the payment is to be sent, and how it will be accepted.
If there are penalties or consequences for late rent payments, consider including it in the agreement.
Leased Dates And Termination
All types of home lease agreements contain the start and end dates of the lease. Include the description of how and when you and your tenant can end the lease. Make sure to be specific in writing the terms and clauses to avoid misunderstandings.
Details About The Security Deposit
Give very specific details regarding the amount of the security deposit and how it’s to be paid. Make sure to also add specific the terms of its future release and how it’s going to be used.
The Occupants Of The Property
A home lease agreement contains a list of the names of every person who will regularly occupy the property. This prevent unwanted or unauthorized tenants from entering or using the property without your permission.
Consider including the penalties if a person stays for more than a certain length of time in the property.
Terms When It Comes To Pets
If the property has strict rules and policies regarding pets, its lease agreement should specify these.
If pets are allowed, the limitations on number, size, and species should be listed. If an additional deposit is required for this, the amount should be written or stated in the lease agreement.
Repairs And Damages
The condition of the property should be noted along with the responsibilities of both tenant and property manager for repairs and damages. Make sure that the lease agreement clearly specifies who will bear responsibility for any damages done to the property.
Alterations To The Property
A home lease agreement also contains clauses regarding the alterations allowed to be made to the rented property. Your agreement with the tenant should describe what alterations or changes the tenant will be able to do to the property.
Right Of Entry
The lease should include a clause that allows the landlord to enter and inspect the property with reasonable notice. The reason for entry should be legal and reasonable to avoid making violations to rental laws.
Optional Terms That Can Be Added To The Home Lease Agreement
Aside from the terms and clauses mentioned above, you are able to add several terms to your home lease agreement should you feel the need to.
These terms are useful and might be applicable to your rental business too.
Right To Renew The Lease
State in your agreement if the tenant has the right to renew the lease at the end of the lease agreement. If the tenant chooses to renew, a new lease agreement should be signed and additional terms and clauses could be added.
Right To Sublet The Leased Home
A home lease agreement may include a clause regarding subletting. Make sure to indicate if the tenant has the right to sublet the house to another person. If you allowed sublet, your lease agreement should include the terms and policies to avoid problems and misunderstandings.
Parking Restrictions Or Rules
If the rental property has a parking lot, make sure to include the terms of using it and the restricted activities that the tenant could do in the parking lot.
A home lease agreement could also contain terms if certain possessions are not allowed on the property. The list of restricted and allowed items should be written in the agreement along with the consequences if those items caused damage to the property.
This clause is necessary especially if the rental property is a multi-unit. Your agreement should list the specific rules that govern the behavior of the tenants on the house premises in order to not cause any inconvenience to each other.
Final Thoughts On Standard Rental Agreement
A home lease agreement is an important document binding a property manager and a tenant. The agreement serves as a proof that they have settled on specific terms and policies for renting out a property with the tenant.
The lease agreement should contain useful information regarding the tenancy such as the name of the landlord and the tenants, the description of the property, and details regarding rent and security deposits.
In addition, the responsibilities of both parties for the repair and damages on the rented property must also be included in the lease agreement. If you wish to add terms such as the right to renew the lease, subleasing, parking rules, and possessions to your home lease agreement, you may do so.
If you need further clarifications regarding a home lease agreement, feel free to leave your questions below.
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Article: The Home Lease Agreement Terms That Property Managers Should Consider