Rental Agreement Form Elements

Free Quote Click Here For Free Renters Policy Quote From Liberty Mutual.

Rental agreement 2
Image by nikhil_jahagirdar via Flickr

 

For most people renter’s insurance is the one of the cheapest insurances you can buy. Most typical renter’s insurance policies are around $10-25/month.

Rental agreements can be confusing, intimidating or constraining to many prospective residents. Nevertheless, they are a necessary part of the rental process – they are a safeguard to both the tenant (aka, lessee – the person that will be living on the property) and the landlord (aka lessor – the person that is renting the house or apartment).

While seeming onerous at times, a rental agreement protects both parties by stating what the tenant needs to do to keep the property at a specified rental amount. It also states the conditions that the landlord must honor to allow the tenant to live there.

Here are the key elements of a rental agreement:

Parties to the Rental Agreement

The lease, or rental, contract will identify the owner, the management company if there is one, and then the lessor. The lessor is the party that owns the property and makes it available to the party that wants to rent the property (the lessee). The identification will the formal legal name of each and their address.

Property Address of the Rental Agreement

This will include the name, address, phone number, and zip code of the property and the unit assigned to the lessor (the resident executing the lease).

Rental Amount – Typically Monthly

The rental amount will describe the exact amount of the rent, when that rental payment is due, and when the rental payment becomes late. Additionally, the rental agreement should specify what will happen if the tenant (lessee) pays the rent late.

Rental Agreement Term

A specific period of time is specified and it will state the beginning date of the lease, when the lease will expire, if there are additional rental periods available and the conditions that happen if the resident does not vacate at the term (or for non-performance of the rental agreement – typically not paying the rent). Often times, the rate will convert to a month to month amount at an increased price. The term of the rental agreement will describe the requirements for termination, results if the resident must terminate early, and other relevant requirements.

Rental Agreement Security Deposit

The rental agreement or lease will describe an amount of money paid, by the tenant, as a security deposit. This security deposit will be held until the tenant vacates the property. The rental agreement will also contain the requirements for the refunding the deposit from the landlord back to the tenant. The lessor’s legal rights to the deposit amount and the disposition of any interest earned on the security deposit. Normally, security deposit does not draw any interest. Also, the lease will explain the requirement to return the deposit and in what time frame.

Rental Agreement – Special Clauses and Addendums

Rental agreements are varied and can range from a single page document to a multiple page lease agreement specifying every conceivable possibility like death clauses, military member rights, home purchase clauses, loss of employment clauses, pet addendums and alternative service items. Other clauses include, condition of premises, use clauses, subleasing clauses, limitations, repair and break down, eviction, right of re-entry, repossession, abandonment, waivers, exculpation, assignment, subordination, fire and casualty, bankruptcy, rules and regulations, condemnation and eminent domain. Also, arbitration and indemnification may be included.

The purpose of rental agreement clauses are to protect the property, the owner, the manager and the renter.

One word of caution… Typically whomever prepares a rental agreement gets to craft the document and, as such, will include favorable conditions for the preparer. And because the lease is often prepared on the owners behalf, it is the owner the becomes favored party in most leases.

Landlords are not responsible for damage to tenants belongings. Be sure to get a free rental insurance quote.

Comments are closed.


error: Thank you for visiting