As a landlord or a tenant, you probably have had to make a lease agreement one or several times in life, for various reasons, for renting a house, for leasing out a property, and so on. If you are renting an apartment or home, you need to make a lease agreement where some terms and conditions of the lease are written.
A lease agreement is a contract between two parties, a lessee who is the one who is leasing the property, and the lessor who is the owner of the property. In the lease agreement, some specific conditions are mentioned about renting or leasing the property. The lease agreement is a very crucial document for both parties, the one who is renting it out and the one who is giving his property on rent. There are many cases where the lessor has signed an agreement, and the lessee has misused the property or sublet it.
Because of these issues, it is essential to understand what needs to go into your lease agreement while renting/letting the property. The lease agreement is a legally binding document that is notarized and signed by both parties, and thus, it is mandatory for them to follow the instructions in it.
Details to Be Included in a Lease Agreement
A lease agreement is a legally binding document. Hence, irrespective of its length or the number of pages it contains, it is essential to include specific mandatory details to make it agreeable to both parties. The most important part is the name of both parties with their permanent address. It can prove the authority and responsibility of both parties.
Terms and conditions
When you are leasing or renting out a property, there are several conditions that you have to include. These include a number of occupants allowed, movable assets within the property and its conditions, maintenance and repair, security deposits, miscellaneous clauses, etc.
Occupancy limits
The lease agreement should specify the number of individuals who will stay in the property. The tenants have to be clear about how many people can stay. Because if the tenant is not clear about the number of people that are allowed in the apartment, then they might break a lease term without their knowledge, and it could result in their eviction.
Movable assets within the property and its conditions
In your apartment, you may have some movable assets, such as ceiling fans, furniture, wardrobes, and so on. If you want to safeguard these movable assets inside your property, you have to make a list of all the items and put it in the lease agreement. You also need to state the conditions for using them and what will be the fine charged in case of any damage. This way, even though you can give leeway to some wear and tear on usage, any significant damage will be covered legally in the document, and you can recover lost or damage costs from the security deposit.
Maintenance and repair
The maintenance and repair of the property have been a major topic of dispute between the lessor and the lessee. You have to state it clearly in the lease agreement, who and how the maintenance and repair of the property will be managed.
Security deposits
It is a rule to deposit a security amount before occupying the property for security purposes, the terms and conditions or the percentage of such deposits differ in various states. It can be equal to one or two months’ rent, but usually not more than that per state law.
Miscellaneous clauses
Several other clauses are depending upon where your property is, and also your conditions. For instance, if you are renting a property within a homeowners’ association, and the property has a clubhouse and a pool, you might need to include restriction or requirement of its usage in the lease agreement.
Not all tenants are law-abiding; sometimes, a tenant can break the terms and conditions of the lease agreement. If your tenant breaks any of the terms or conditions of the lease agreement, you can evict him or her from your apartment. You can find all the related eviction laws in the Express Evictions website. You can also consult with them for any eviction-related law or hire an eviction lawyer.