Protect Yourself Legally From Uncertainties with a Rental Agreement

I put a lot of thought into rental agreements earlier this year when thinking about my basement. Finding the right renter is something that has literally kept me up nights worrying about it! And my basement is FAR (like years) from even being ready for a renter. But that’s just how I am, I always think about things WAY ahead of time. I am leaning more toward an airbnb rental now as opposed to long term but, on the other hand, if I could find a renter I trusted long term is certainly something I would consider and, in that case, a rental agreement would be KEY.

(The following is a contributed article.)

All landlords dream of having the perfect tenants. A good relationship all starts with having all the tenants sign a rental agreement that has a list of all your expectations.

This legal document is vital as it protects you from nasty surprises that tenants can throw on your way. This can include delayed or unpaid rent, and damage to property.

How to Write a Rental Agreement

The first section of a rental agreement is the payment information. It has all the details on the amount of the rent and the consequences of failing to pay. The following information will be included:

• Exact amount of rent
• Late fees charged
• Due date
• Security charges
• Utilities and other fees

Property particulars are another section. You do not want to end up paying for damaged goods as a result of the careless of a tenant. Your rental agreement will protect you from such incidences if it covers situations such as the definition of property premises, definition of damage besides the normal wear and tear, and specific details on what exactly can be altered such as holes on the walls for hanging pictures.

The agreement should also specify if the owner has a right to inspect the property and if notice will be provided prior to the inspection. You should also remind your tenants not to change the locks and hinder you from accessing the apartment. The tenant should immediately inform you of any damage.

Additional Circumstances

It is very difficult to foresee what a tenant might do so you can also cover up any eventuality such as allowance of pets, overnight guests and how long they are allowed, noise ordinances in the neighborhood and what can be stored within the premises.

You might assume that every tenant should know this; it might not always be the case. To be on the safe site, make it clear form your agreement that any illegal activity such as drug dealing is strictly prohibited. The tenant should be ready to comply with all the laws pertaining to health and safety.

The lease must also comply with the state and local laws, occupancy rules and anti discrimination laws. There are various benefits of registering rental agreement with a certified government body:

• Legal evidence of rental agreement: one of the main benefits of registering your agreement is that you posses a legal document to prove ownership of agreement. In case of any legal dispute in the future, you can use this document to get yourself out of the mess. This is an important benefit that will help you in the long run.
• Benefits of government laws: if your agreement is not registered with a government body, you can enjoy the benefits of government laws. The only way to unveil the benefits that come along with a government body is to register your agreement.
• Avoid unnecessary legal issues: no one enjoys being trapped into a sticky legal situation. Before you hand over your property to a tenant you need to register your agreement under the local registrar.

Leases

A lease is a set term that can range from 6 months to one year. During this period, a tenant agrees to rent the property. The tenant and the landlord must both adhere to the rules of the agreement within that specified duration.

This may include an agreement to make the monthly payments and willingness to follow any other obligations specified in the lease.

Neither party is allowed to change terms of the agreement until the expiry date of the lease. A tenant cannot vacate the property before he breaks the release. If he does so, he will be held liable for the rest of the due rent. After this period, he may be requested to find another person to take over the lease.

Leases are ideal if you want to have a tenant for a set period of time. if you have a mortgage payment to meet, it is easy to budget your expenses if there is a tenant who will be there for one year, thereby giving you peace of mind.

Most of the tenants know all about long-term leases and so will not have a problem committing.

Rental Agreements

There are no long term requirements when it comes to rental agreements. Rent is paid each month and after a 30 day period, a tenant and the landlord are free to make any changes to the agreement.

Such changes may include increasing the rent amount, asking the tenant to vacate or changing the initial terms of the agreement. However, the last in most states require that both the landlord and the tenant give a 30 days’ notice before any changes can be made to the agreement.

If this law is not applicable in your sate, you can make any changes you wish on the part of the rental agreement.

Rental agreements are useful if our tenants are giving you a hard time or are having problems attracting new tenants. They are also useful if you live in an area that is saturated with students or professionals who move around often.

These tenants will appreciate a month to month agreement because if offers them the freedom to move wherever they wish at the end of the 30 day period. Offering a monthly rental agreement can give you an added advantage over other landlords who insist on long-term leases.

The terms of the agreement should be renewed after the one moth has ended. There is no need to notify your tenants about this automatic renewal, as long as neither of the parties has stated that the tenant has intentions of vacating the premises.

Before you rent out your facilities, you should have in mind the differences between a rental agreement and a lease. This will help you make the best choice that suits your situation. You will know what suits you and your tenants to avoid confusion and disappointments in the future.

(This is a contributed post, for more information about my compensation please read my disclosure policy)