Guidelines For Making A Good Rental Lease Form”
Do you want to know how to make a rental lease form? Maybe because you’re renting out your property for the first time?
As a property manager, you need to put serious effort into creating this document to avoid any confusion. Problems in a tenancy arise as a result of an unclear rental lease form.
So making a good rental lease form is a requirement for any property manager. You just need to follow particular guidelines to ensure that nothing goes awry in the document.
What are these guidelines? I’m going to cover them in this article. Here, you will learn more about how to make a good rental lease form.
How to Make a Good Rental Lease Form
A good rental lease form protects the parties involved in the agreement. It prevents misunderstanding that could potentially lead to unwanted actions.
When preparing a rental lease form, you need to consider certain clauses and laws. Whether this form is short or long, it needs to cover the basic terms of the tenancy too.
We’ll get into all of those later. But before that, you must first know what is a rental lease form.
What Is a Rental Lease Form?
A rental lease form is a written document that both the lessee and lessor negotiate prior to renting. This form provides both parties with a legally enforceable contract or agreement.
This form also outlines the responsibilities and obligations of the parties involved. These are terms that they must seriously follow. Failure to do so may result in ending the lease… or worse, legal action.
In creating this form, the basic information should be supplied first.
Start with the Basic Information
The basic information in a rental lease form is used to establish who’s involved in the contract. Among other things, it also makes clear where the property is located, what type of property it is, and how long tenants can stay in it.
Other details like this also belong here:
- The amount of rent tenants have to pay.
- When tenants have to pay rent.
- If there are fees for being late with rent.
And so on. Here are a few details about some of the important basic information in a rental lease form:
Names of Both Parties
Include the complete names of tenants and their children (if applicable). They will be the one who will sign the lease. This makes each tenant legally accountable for all terms found in the agreement.
Also, your complete name as property manager must be visible to serve as the tenants’ reference. This will be an assurance that tenants can reach you for any concerns.
Duration of the Term
You need to specify the exact start date of renting. Include also the exact end of the contract date.
Rent Payments and Other Fees
Clearly state the amount of rent, the due date, and the process of payment. Include also the exact amount of the security deposit and ways of returning it. Highlight in the lease form the charge for late payments.
Note if there is also a fee for violation of any of the rules stated in the rental lease form. The fees should be visible for the tenant to read in the form.
Proceed with the Rights and Responsibilities
This is where you set the actions that both parties must do. The property manager and the tenants have equal rights and responsibilities to perform. Sincerely doing these rights and responsibilities will result in a smooth leasing process.
Rights of the Parties Involved
Typically, tenants have the right to renew the lease after the end of a lease agreement. The amount of rent they pay can either be kept as is or renegotiated during this lease renewal period.
Also, it’s the tenants’ right to be free from harassment and illegal eviction. From the time the tenants rent the property, it becomes their home. The property manager must respect and follow legal procedure when entering the property then.
You also have your own rights as a property manager. It’s your right to visit the property if you give reasonable notice. The notice will give the tenant time to prepare for your visit.
Another right for the property manager is the right of exclusion. It’s his right to prevent somebody from entering the property.
Responsibilities of the Parties Involved
One of the most important responsibilities of the tenant is to adhere to the lease agreement. All the agreed terms in the agreement should be followed by the tenants. They must use the property for the purposes agreed upon in the rental lease form.
It’s another responsibility of the tenant to keep the property premises clean and free of damage. This should be applied throughout the tenant’s stay in the property.
It’s also your responsibility as the property manager to update tenants on any visible damage to the property. It’s best to tell the tenant about such issues even before the lease starts. This ensures transparency in the contract.
Include Additional Clauses
You must also cover other essential clauses in your rental lease form. Some important clauses are listed below.
Specify if tenants are allowed to sublet the property with or without permission from you. As the property manager, you have control of this clause.
It’s important to indicate the exact payment for violating the agreement with regards to subletting the property.
Introduce a pet policy to make sure the tenant knows what your stance is on pets.
If you allow pets, specify the kinds that are allowed on the property. The tenant should make sure that the pets are vaccinated prior to renting.
Specify Rules for Termination
As a property manager, you need to prepare for any acts of the tenant that will result in an early termination.
Under this, you need to provide at least three days’ grace period prior to terminating the rental agreement. Make sure there is at least a valid violation that the tenant violated before issuing a termination notice.
Valid Reason to Terminate a Rental Lease
A lease is usually set for termination if the tenant fails to pay the rent for at least three consecutive months. Tenants will be given a notice prior to the act.
Also, a lease can be terminated if tenants violate rules given in the rental agreement. Again, you need to notify the tenants of the violation before you terminate your agreement with them.
Ways for Evicting Tenants
There are certain ways for evicting tenants if they violate any rules of the agreement. The most convenient way is to talk with the tenant regarding the things they violated. Give them at least 3 days’ notice so they can move out peacefully.
If a tenant still stays after the notice, you can file a complaint. A property manager can file for an eviction lawsuit if tenants still remain on the property after being issued a termination notice. He can request a law enforcement officer to get rid of the tenant.
Final Thoughts on Making a Rental Lease Form
In this article, we talked about how to make a good rental lease form. A rental lease form should be as detailed and concise as possible. Creating such a form correctly will give you a smooth leasing process.
A good rental lease form will protect the tenant and you. It prevents misunderstandings that could potentially lead to any unwanted actions.
The important clauses we have discussed that you should consider in making a rental lease form are as follows:
- Start with the basic information,
- Proceed with the rights and responsibilities,
- Include additional clauses, and
- Specify rules for termination.
If all of these clauses are followed, you will surely create a good rental lease form.
If you found this article helpful or have further concerns, you can leave a comment below.
Disclaimer: This commentary is a matter of opinion provided for general information purposes only and is not intended to be taken as investment or trading advice under any circumstances. Information and analysis above are derived from sources and utilizing methods believed to be reliable, but we cannot accept responsibility for any losses any person may incur as a result of this analysis. Individuals should consult with their personal financial advisers. By using this web site or any information contained in it, the user specifically and expressly agrees that no advisor-client relationship is created between said user and any author, owner, executive, or principal of this web site by either use of this web site, or by any information, product, or service offered by or on this web site. No express or implied guarantees or warranties as to investment or trading results are made, and any perceived insinuations of such are hereby expressly disclaimed.