Hello World! Welcome Friends! According to recent research, household rent increased by 10% between 2019 and 2021. If you want to rent out the spare room of your house, a rental agreement is vital to move forward with any kind of tenancy.
Without a lease agreement, you leave yourself vulnerable to a lawsuit from a renter. They could take you to court on the basis of illegal contracts and unlivable conditions,
If this is not something that sounds like a good time, pick up a basic rental agreement template and start plugging in the numbers. Take a look at what makes up a basic rental agreement.
Names of the Landlord and Tenant
It is customary for the landlord and tenant to sign the rental agreement. The landlord is usually required to provide their name. The tenant is also required to provide their name and contact information.
The lease agreement should include the names of any adult occupants. The agreement may also require the names of any children who will be living in the rental unit.
Address of the Rental Property
A basic rental agreement should include the address of the rental property. This is so that both the landlord and the tenant know where the property is located. The address should be clearly stated in the agreement so that there is no confusion.
Term of the Tenancy
The term of the tenancy is the length of time that the tenancy will last for. It can be for a fixed term, such as six months or one year, or it can be periodic, which means that it runs from one rental period to the next, such as month to month.
Amount of Rent
The amount of rent that is to be paid is one of the key features of a basic rental agreement. The amount of rent is typically based on the size of the unit, the location, and the amenities that are included in the unit. The amount of rent is also typically based on the length of the lease agreement.
Security Deposit
A security deposit is a sum of money, usually equal to one month’s rent, that is paid by a tenant to a landlord as a way to ensure that the tenant will fulfill their obligations under the rental agreement.
The deposit is refundable, minus any damages or other charges when the tenant moves out. In some cases with a rent controlled apartments, the security deposit may be used to cover the last month’s rent.
Utilities
A basic rental agreement should include a section that specifies which utilities the tenant is responsible for. Typically, tenants are responsible for utilities such as electricity, gas, water, and trash.
The agreement should also specify the landlord’s regulations about who is responsible for paying for any monthly charges for these utilities.
Start Drafting a Basic Rental Agreement With These Tips
A basic rental agreement is a legally binding rental contract, so it is important that both the landlord and tenant understand the terms before signing.
If there are any questions, it is best to consult with an attorney or a rental agent before signing the agreement.
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