“Guide In Making A Simple Rental Agreement”
Are you planning to make a simple rental agreement?
All property managers should know how to make a rental agreement. The rental agreement lays out all the terms of your contract with your tenants.
It also addresses all the possible issues that could happen during the tenancy.
That’s why you should make a rental agreement that’s made specifically for your rental property business.
In this blog post, I’ll talk about the terms you need to include in your simple rental agreement.
Learning More about Simple Rental Agreement
A simple rental agreement isn’t that hard to draft. The real challenge is in remembering everything you need to account for in the agreement.
Even a simple rental agreement should contain important details about the tenancy, you see. This’ll help you prevent the possible misunderstandings between you and your tenant.
But before we talk about the important terms, let me first discuss what a rental agreement is.
What Is a Rental Agreement?
The rental agreement is a contract between the property manager and the tenant. It’s proof that the property manager allows the tenant to stay in the property.
Both parties should sign this document before the actual tenancy begins. That’s because the simple rental agreement is a legal document, and signatures prove its validity for the parties involved.
Not all rental agreements are the same. Depending on the circumstances, format and content may vary.
However, all rental agreements should contain all the important information about the tenancy.
To give you an idea of what these are, here are the contents of a simple rental agreement.
Making a Simple Rental Agreement
Property managers should know the important terms and clauses that should be included in every rental agreement.
This is essential in order to provide the best tenancy experience for all parties. It also outlines the responsibilities and lines of culpability should a dispute ever arise between those parties.
Some rental agreements are huge documents. Others are relatively concise, by comparison.
That said, even a simple rental agreement should clarify some very important points.
For example, even if you’re just planning to create a simple rental agreement, make sure to include the following.
Names of Parties
It’s important that your rental agreement includes the names of all the people involved in the tenancy.
That means the landlord, of course, as well as the tenant. But while there’s usually only one landlord, there may be more than one tenant in a simple rental agreement.
The names listed on the rental agreement are responsible for the duties and obligations of the tenant as outlined in the agreement.
The property manager is allowed to end the tenancy if one of the persons listed in the agreement violates the terms of the lease.
The Term of the Tenancy
Your simple rental agreement should specify if the tenancy is a month to month agreement or a fixed term agreement.
This affects the clauses and terms that your agreement should include. If the tenant decides to extend, make sure to include the terms for renewing the contract
Include the possible violations that could end the tenancy and address the termination options as well.
Important Details about Rent
A simple rental agreement should include details about the rent. Failing to do this can lead to misunderstandings and disputes.
Make sure to list details about rent such as these:
- Amount of rent.
- Forms and modes of payment.
- Deadlines for payment.
- Consequences of failing to pay the rent in full and on time.
The Limits on Occupancy
Many property managers are strict about the people allowed in the rented premises. If you’re one of them, make sure to specify the number of the persons allowed inside the rented property.
Allowing unauthorized people in your rental property business could lead to several problems such as illegal activities or disturbances.
That’s why you should state it in your simple rental agreement if it’s a concern.
The rental agreement should specify if subletting is allowed or not during the tenancy too.
Details about Security Deposit
Along with the rent, your rental agreement should also include details about the security deposit. It’s one of the main causes of misunderstandings between the property manager and the tenant.
Make sure to include the amount of the security deposit. Along with that, state the terms of how you’re going to use the deposit.
The process of returning the security deposit should be explained as well.
Repairs and Maintenance
Details about repairs and maintenance are always present in rental agreements. The property manager and tenant discuss matters regarding this in order to prevent possible misunderstandings in the future.
If both parties have particular maintenance obligations, make sure to state who’s responsible for specific repairs and maintenance.
Allowed Activities in the Property
One of the main responsibilities of the property manager is to keep the rental property business safe.
That’s why your simple rental agreement should have provisions that clearly state what constitutes disruptive behavior. Doing this will prevent or minimize unwanted activities inside the property.
Also, don’t forget to state the consequences of doing illegal activities inside the rented property.
Allowed Changes to the Property
After the tenancy, the rented premises should be returned to their original condition. This is done to preserve the property.
With that said, the simple rental agreement should state if alterations are allowed to the property.
If you’re allowing alterations, make sure to specify the types of changes that the tenant can make to the property. And don’t forget to address who is responsible for damages to the rental property.
That’s all the information you need to include in your simple rental agreement.
However, there are a few more things to keep in mind if you want to make the best simple rental agreement you can.
Reminders While Making a Rental Agreement
Since the rental agreement will be a legal document, it’s important to keep it free of mistakes.
Make sure that it’s easy to read and specific in giving details.
Also, you need to check rental laws in your area first before finalizing your simple rental agreement.
Consulting a lawyer will help you create an error-free simple rental agreement. Let them check and see if the rental agreement complies with the local rental laws.
Making a violation of the rental laws will bring a bad reputation to your rental business.
Final Thoughts on Making a Simple Rental Agreement
Rental agreements serve as a contract between the property manager and the tenant for renting the property.
A simple rental agreement still includes every important detail about the tenancy such as the length of the tenancy and names of individuals involved.
Along with that, property managers also use the agreement to give details about the rent, security deposits, and terms for subleasing.
Even if you’re planning to make a simple rental agreement, you also need to include details about the allowed activities on the property.
Doing this will prevent illegal activities or disturbances inside your rental property business.
If you have more questions about the simple rental agreement, just leave them in the comments below.
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