5 Crucial Items to Include in a Lease Contract - Finance

Leasing a property is a lot more than just locating a tenant and then collecting rent payments. There needs to be a solid lease agreement that is approved by each party. Failing to create a lease can make it more difficult for a landlord to pursue loss from a tenant, or for a tenant to go after their legal rights against a property owner. Having said that, what need to be contained in a lease agreement template?

Name And Contact Information Of All Tenants

As being a landlord, you should know who is leasing your home and the way to get in touch with them. Should there be a problem with the premises, or perhaps a tenant fails to pay rent, you must make sure you could get in contact with that tenant. If anything would happen, and there is no communication, it could cause problems later on for all parties.

Lease Terms

Is this monthly tenancy, or is there a lease period of time included? For a monthly tenancy, the landlord or tenant hold the legal right to end the arrangement with 1 month notice. The majority of leases will run for a fixed period of time, usually 12 months. Understanding this in advance will get rid of misunderstandings and make clear the responsibility of each party.

Rent Amount And Penalties For Failure To Pay

There must be an itemized rent statement inside the lease agreement template. Rental amounts a month, and the total for the entire year need to be involved. If any security deposit is needed, the amount paid must be also shown on the lease agreement. This will guarantee that both parties know how much is to be paid and what exactly the terms are to fail to pay rent.

Right To Enter Home

A property owner has the legal right to enter a house with twenty four hours notice provided to tenant. Make sure this is mentioned on the lease agreement template so your tenant cannot claim you broken his right to privacy.

Legal Needs

Make certain that both parties sign the lease and that both sides are eligible to sign the lease. Normally a lease is only signed by any individual more than 18 because minors cannot be held to any agreement. In case the lease isn?t signed by all the renters, it can?t be enforced in court should something take place.

Your responsibilities as a landlord go beyond just making sure your place is occupied and you are getting paid. As being a landlord, you must spell out what rights you have to your property as well as what your expectations are from your renter, it doesn?t matter what kind of lease agreement you?ve got. Many tenants are responsible and definitely will pay for the rent, but if not, you should be sure you get some option available to you.

Do you need help crafting the perfect rental agreement? Visit Lease Agreement Template online to get free templates and ideas.

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Source: http://www.thefinanceanalysis.com/2012/03/08/5-crucial-items-to-include-in-a-lease-contract/

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