This article will teach you the building blocks of a lease. You will learn who a real estate lease agreement is commonly between, and the different types of property that can be leased.
You will learn if you should have an attorney draft up your lease. You will also discover the difference between a rental agreement and a lease agreement.
There are certain things even the most basic lease must include. A lease is an agreement between two parties for use of an asset. Therefore one clause every lease must contain is the ‘parties’ clause or, who the lease is between. This article will teach you the five most basic clauses your lease agreement must include.
It is always a good idea to require your tenant to put down a security deposit before they move into your property. This deposit will protect you in the event of nonpayment or if the tenant causes damage to your property.
The terms of the security deposit should be clear in the lease agreement so the tenant fully understands and complies with the rules necessary to receive full refund of their deposit. In addition, certain states will require you to inform the tenant in writing of the account where their security deposit is being held and the interest rate of the account.
You need to spell out the exact policy you have for allowing or for refusing to allow tenants to have pets in your property. If these rules are not included in your lease, the tenant will not be bound by them.
This lease clause should clearly spell out what pets are allowed, if there is a deposit required, the consequences of finding unapproved pets in a tenant’s apartment, the liability that pets can create, as well as fees for damage the pet has caused to the apartment. You should also define your expectations of the pet and the owner.
This should be a separate paper that acts as a rider to the original lease agreement. It will acknowledge the actual receipt of the tenant’s security deposit.
In state’s that require you to keep a tenant’s security deposit in an interest-bearing account, this form will also notify the tenant of the terms under which their deposit is being held. You will usually have to provide the tenant with a copy of this document within 30 days of receiving the security deposit.
Lead-based paint can cause liability issues for landlords and property owners who have houses or buildings constructed before 1978. HUD and the EPA have certain rules and regulations that must be followed when renting or selling such a property. It is important that landlords and property owners follow these rules exactly to avoid fines and potential lawsuits.
Important Lease Clauses for Every Landlord
Creating a Strong Lease agreement
A lease agreement is a legally binding contract between you and your tenant. This is why it is so important for every landlord to have a lease that includes certain legally required clauses, as well as some additional clauses which will make the lease stronger. Learn what a good lease should include.
Some landlords begin with a simple lease, but over time and through personal experience, they add additional clauses to protect themselves from issues they have encountered in the past. You can choose this approach, or you can decide to have a thorough, comprehensive lease agreement from the very beginning.