Drafting a watertight lease agreement is one of the most important steps you need to take if you are a landlord. Done right, a lease contract can protect your investment and legal rights. Which leads to the question: what should you include in the lease agreement?
A good lease contract can help prevent landlord-tenant conflicts. Here are three key clauses that you need to include in your residential lease agreement:
The lease contract should clearly specify that the property will only be occupied by the adults who signed the contract and their minor children. This will avoid problems with tenants illegally subletting your property.
Additionally, the lease agreement should stipulate that the premises will be used for residential purposes only. The tenant will be violating the lease agreement (and possibly zoning regulations) if they conduct commercial activity on the property.
Maintenance and repairs
It’s important that the contract is clear on the responsibilities of both the landlord in the tenant as far as maintenance and repairs are concerned. For instance, it is the landlord’s duty to ensure that the property is habitable. However, it should be the tenant’s job to ensure that the property is kept neat and tidy.
Also, be sure to outline what sorts of violations (like a hoarding situation) will be cause for eviction.
Lease periods and renewal options
A lease agreement should be clear on the tenancy period. It should indicate the specific dates the lease period will begin and end. This clause should also talk about lease renewal. Will the rent be reviewed during the renewal or not?
Finally, this clause should outline what will happen if either party vacates the contract before the expiry of the lease period.
A lease agreement protects you and your investment from potential problems. Find out how you can draft a lease agreement that safeguards your rights and interests.