Leasing out your residential property can earn you money while also keeping your property occupied. Many people have gone on to earn a lucrative monthly income by renting or leasing residential properties. However, you must be careful when drafting rental agreements if you want to avoid potential legal trouble from arising.
A rent or lease agreement is a legal contract. When you and your tenants sign, you both agree to abide by the terms of the contract. When well-drafted, rental agreements protect your interests in all your commercial and residential tenancies.
What terms should your rental agreements contain?
Residential rental agreements should be as brief as possible, but they should also contain details that your tenants can understand. Below, you will find seven important lease terms to include in your agreements.
- The names of all individuals occupying the unit to avoid unwelcome tenants
- Well-defined lease periods to avoid misunderstandings about when tenants may move in or out
- Detailed information about security deposits and late rent fees
- A section detailing your policies on pets, noise, parties and other potentially disruptive activities
- Details explaining when you may enter the residence in compliance with Texas landlord laws
- How much the rent is and when payments are due
- Information describing each party’s (your and your tenants) maintenance and repair obligations
Those with commercial and residential tenancies in Dallas-Fort Worth and other Texas regions have found it beneficial to partner with an attorney. Such a partnership offers many benefits, such as assistance in creating a strong lease or rental agreement. You will also gain an advocate who can protect you if legal trouble arises.
