A lease agreement is a document that protects tenants and landlords from potential conflict. It sets the standards of expectations in advance so the parties involved know what is expected of them. A detailed lease agreement can save you from a world of trouble if you are a landlord looking to go into a smooth real estate profession. Do you know how to make a lease agreement? Keep reading to learn a thing or two about this document and what a proper agreement should contain.
What Is a Lease Agreement Exactly?
A lease agreement is a document recognized by law. It is created once the landlord and prospective tenant have reached an agreement to enter into a contractual relationship. There are different clauses in lease agreements and they spell out in detail all the expectations and rules that the parties must adhere to.
How you draw up a lease agreement will depend on the tenancy laws of your city or region. These laws regulate such issues including lease renewals, notices, addenda, and more. They spell out your rights as a landlord as well as the rights of the tenant.
When making a lease agreement, be sure to consult your local tenancy laws or get in touch with a local attorney for close supervision or guidance.
Types of Lease Agreements
The agreement you create will depend on the lease type such as the following.
Fixed Term: A lease with a fixed term has a starting and end date which usually runs for 6 months to a year.
Month-To-Month: A month-to-month lease is one that renews automatically at the start of a new month until one party decides to terminate it.
You can draw up your lease depending on your situation.
How to Make Your Lease Agreement?
To create your lease agreement, here are simple sections you need to pay attention.
1. Collate Information
You start by collecting the information of your would-be tenant including their contact information and any other physical address they may have. For extra information, you may reach out to estate agents, property managers, or a previous landlord. If they have other occupants like a spouse and children who will be living with them they must include their names.
2. Property Specifics
After collating their names, you should input specific information about the property in the document. There are two types of rental properties which are single-family homes and multi-family homes. Single homes are like standard houses while multiple-family homes are apartments, basement apartments, and duplexes. Provide specific information in your lease.
3. Utility Services
Outline the services and utilities provided in the property which may include but are not limited to
- Natural gas
- Electricity
- Water & Sewer services
- Snow removal
- Trash removal
- Heating
- Phone/Cable/Internet services
- Landscaping
The costs that will be incurred by the tenants during their stay in the property must be clearly stated. It should also show when such payments will be due.
4. Lease Terms
The terms outline the length and type of the lease. The tenant needs to know the circumstances that may cause them to leave the house earlier than the lease end date. Your agreement should spell out conditions for termination and whether these conditions have an end date or whether they are carried on from month to month. There also has to be a clear eviction policy should the lease terms be violated. This should be in line with the laws of your city.
5. Rent Amount And Extra Fees
The base rent for the property must be stated. This is the monthly rent they are liable to pay before any extra charges are included. This rent must be communicated without any cause for confusion. There should be a total due amount per month as well as the due date. Furthermore, extra fees must be communicated in the document so the tenant does not confuse monthly rent and utility fees as the same. Extra fees like late fees or insufficient fund fees must be stated if any.
6. Payment Method
How you wish to collect the rent at the start of every month should be clear. Common methods like electronic payment, money order, or bank transfers are accepted by many landlords. Clearly outlining your preferred method ensures consistency and avoids misunderstandings. Whether you choose online transfers or cash payments, maintaining a uniform system will make the process smoother for both landlord and tenant, minimizing potential conflicts.
7. Rights & Obligation
You have rights and your tenant has rights as well. Their responsibility as well as yours must be explained in detail. Outline the rights and responsibilities of both parties. Common rules and responsibilities include
- The use of the property for residential purposes only
- That the property is only occupied by the approved occupants
- Activities that disturb other tenants must be avoided.
- Adhering to established rules and regulations of the lease
- Keeping the property clean at all times
- Notifying the property owner if there is a need for any repairs
And much more.
As a landlord, you are obligated to
- Comply with lease agreement regulations
- Set up utilities before the start date
- Maintenance of the property
- Avoid entering the property without the permission of the tenant
- Not disrupting the tenant’s privacy.
Conclusion
A lease agreement sets the rules, terms, and conditions for a fruitful and incidence-free relationship between a landlord and the tenant. You can create one from scratch, which will take you more time, or you can opt for a suitable template using the Agile PDF Center. Create your lease agreement with ease by simply downloading the template of your choice. This approach saves time and ensures your agreement adheres to legal standards, giving both parties peace of mind.
You can make your own lease agreement with a PDF Agile template. You don't have to be a professional or create one from scratch. This center has different templates you can choose from. All you have to do is input the right information in the right section and the agreement will be ready for signing. The templates are user-friendly and designed to meet a variety of needs, making the process quick and hassle-free. Whether for residential or commercial use, Agile PDF simplifies the task.
