“Learn How to Make A Simple Lease Agreement”
A simple lease agreement can be fairly easy to make. It only takes an hour or two to finish making one, as a matter of fact.
That’s why most landlords are able to provide this agreement easily when there’s an unexpected tenant. The more experienced the landlord, the faster the process becomes.
But even if a simple lease agreement is made quickly, it should still be suitable for a fixed-term tenancy. There are bases you need to cover in a simple lease agreement.
Do you know how to make an effective lease agreement even if it’s rushed?
I’ll help you do that in this blog post. Today, I’ll talk about making a simple lease agreement as quickly as possible without sacrificing utility.
Steps in Making a Simple Lease Agreement
You can easily make a simple lease agreement because it’s less complicated than other types of lease contracts. It only contains the basic, most important terms and clauses for a fixed-term tenancy.
We’ll talk about those in a bit. To help you have a better understanding about a simple lease agreement, let’s first define what a lease agreement is.
What Is a Lease Agreement?
A lease grants a tenant the right to use a property for a fixed time period. This agreement usually lasts for 12 months.
However, a tenant can still have a lease agreement even if they only plan to stay in the property for a short time — say 3 months or more.
In addition to that, the lease agreement also has fixed terms and conditions such as the amount of rent, rules regarding pets, etc.
The property manager and tenant can’t change what’s in the agreement without written consent from each other. Despite that, having a lease agreement is beneficial for the property manager.
The tenant can’t stop paying their rent or vacate the property until the lease’s end date with a proper lease agreement, after all. That’s just one of the many ways a simple lease agreement can be of use to a landlord or property manager.
How to Make a Lease Agreement
Even if you’re just making a simple lease agreement, you should still start with a draft. You’ll likely get an idea for how to refine at least one point in it after you finish, you see.
Keep in mind that you will have to consult a rental lawyer before you provide the lease agreement to a prospective tenant as well.
Presenting a draft to the rental lawyer lets you keep your simple lease agreement compliant with the law. The lawyer can go over it to check if there’s anything you should change.
But as I said, that’s for when you’re done with your draft. First, you actually have to write it.
I’ll show you how to do that. Let’s start writing the basic information first.
The top portion of the simple lease agreement should include basic information.
First, indicate that the contract is a lease agreement. After that, the next part should include information about the individuals involved in the tenancy.
Also, include your name and don’t forget to mention that you’re the landlord or owner of the property.
Aside from the details about you and the tenant, the top part of the lease agreement should also include details about the rented property.
Usually, a simple lease agreement will have the name of the property in this part along with the following:
- House Number,
- Street name,
- State, and
- Postal Code.
The Term of the Lease
The information about the terms of the tenancy is often written in the middle part of the simple lease agreement.
When writing the terms of the lease, always include terms and clauses regarding the limits on occupancy, subleasing, and your right of entry. Adding these to your simple lease agreement can minimize misunderstanding and confusion.
Other than that, also state the start and end date of the tenancy. This is an important part of your simple lease agreement.
Since lease agreements last for a couple of months, it’s better to specific about the tenancy’s period. Thus, instead of writing “This lease is for eight months”, write “The lease begins on Dec 09, 2018 and ends on July 31, 2019”.
Details About Fees and Payments
A simple lease agreement also contains details about rent payments.
Same as the terms of the tenancy, it’s best to be specific in giving details about rent. Make sure that the rent’s amount and the date it should be paid are stated.
Also, don’t forget to include details about other fees such as the security deposit or utility and maintenance fees.
Be specific in giving information about the security deposit, in particular. That’s because it’s one of the most common causes of disputes between the tenant and the property manager.
Always state your preferred forms of payment in the simple lease agreement too. If you’re implementing violations for late payments, don’t forget to mention it as well.
Obligations of Each Party
The bottom part of a simple lease agreement is where you can usually find the area where the obligations of each party are stated.
It’s important to include this in your simple lease agreement to further avoid misunderstandings during the tenancy.
The obligations that you give to your tenant should be reasonable. Consider checking the rental laws in your area to see the allowed obligations that you can give to your tenant.
Also, be sure to mention that the tenant is required to follow the rules and policies for renting the property.
Lastly, state in your lease agreement that the rental is to be used for residential purposes only. Along with that, make a list of the allowed and restricted activities inside the rental property.
Never forget to list restricted activities properly to ensure the safety of your rental properties. You may want to use blanket terms or descriptions for convenience, e.g. “any activity that violates the law”.
Giving the Lease Agreement
The simple lease agreement is usually given before the tenant moves into their rented property. Thus, make sure you’ve polished it up and reviewed it before that.
In some states, a lawyer must be present while you and your tenant are signing the lease agreement. This is done so there’s someone to testify that the tenant agrees to the rules and policies of renting your property.
Once your tenant signs the lease agreement, make a copy of it and give it to the tenant. In some states, property managers are even required to give a copy of the agreements to their tenants to validate the tenancy.
Final Thoughts on Making a Simple Lease Agreement
A simple lease agreement is easy to make because it only contains the most important terms and clauses for a fixed-term tenancy.
Property managers only include information such as the basic information about the tenant, the rented property, and the terms of the tenancy.
Also, the simple lease agreement has clauses regarding the obligations for both parties and details about rent and other fees. It may also state what activities are permitted to tenants of the property.
That’s about it for how to make a simple lease agreement in a flash. If you have more questions about making a simple lease agreement, leave them in the comments below.
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