With a well-crafted rental agreement and solid lease, landlords and tenants are guided with the responsibilities, terms and conditions, and procedures of the tenancy. It’s important to remember that each rental agreement will have a commonality and contain similar items that are expected to be found in the contract.

Here are vital terms that must be present in your rental agreement to keep you and your tenants happy:

1. Names of all tenants

It’s expected that all the names of the adults occupying your rental home are written down as tenants in your lease. This protects the landlord by ensuring that each of the named renters with their signatures bears the same duty to pay the rent each month and maintain the space within reason. All the tenants should also follow the property policies outlined in the rental agreement.

Should one of the renters abandon the unit, the others are still obligated to continue paying the rent under the law. Even if only one renter violated a property policy, as a landlord, you can consider ending the tenancy for the others as well.

2. Limits on occupancy

To ensure that the landlord remains in control over the number of tenants staying inside the rental space, the rental agreement must declare that only those who signed the lease are counted to be tenants, including their minor children.

person standing in front of front door brown mat that says "home" with a red heart instead of an "o"

In case a renter decides to sublet the unit or allow a friend or family member to stay indefinitely without asking for your approval, then you can end the tenancy.

3. Rental term period

Your rental contract should be specific on whether it’s a rental agreement or a fixed-term lease. A rental agreement functions on a month-to-month basis. It self-renews on its own until one of the parties to the agreement sends a notice to the other to end the tenancy.

On the other hand, leases typically last a year. As a landlord, you determine the period of the rental term based on how flexible you want the arrangement to be and how open you are to allowing a tenant to stay for the short or long-term.

4. Rent amount

The rental rate and due date must be specific and clearly stated on the rental agreement to avoid any confusion. It should mention the following:

● Payment methods (mailed-in checks, electronic payments, or credit card payments)
● Late fee amount if it applies and grace period given if there are any
● Additional charges in case of bounced rent checks

5. Deposits and fees

A lot of the landlord and tenant conflicts surround security deposits, specifically in how it’s used and the refund process. To avoid falling into a dispute, it’s best for your rental agreement to specify the following:

person counting cash

● The amount of the security deposit (review the maximum limit set by the State law)
● Situations on how the deposit may be used (property damage repairs) and how it shouldn’t be used by the tenant (paying off last month’s due rent)
● The process of the security deposit refund, including the date and the method with details of the deductions, provided after the lease expires, and
● Non-refundable legal fees, such as pet fees or cleaning fees

You can also issue more information regarding the security deposit storage and the interest amount given to the renter. Note that some states make the release of this information mandatory requiring it to be written on the rental agreement.

6. Repairs and maintenance

When conflicts occur, you may encounter a renter withholding the rent. Reduce this occurrence by making sure that your rental agreement details the duties of both parties, specifically when it comes to repair and maintenance, and any renovations.

This should include:

● A renter’s responsibility in ensuring that the rental space is clean and sanitary and the possibility of being charged when the unit contains damages due to a renter’s neglect or abuse
● Requiring renters to report harmful situations that lead to damage in the rental and the proper process in handling complaints and property maintenance requests
● A list of restricted activities concerning DIY repairs, unapproved interior decorations, purchase of new appliances, setting up of new security systems, or repainting the unit

7. Access to the rental unit

Entry to the rental can be a sensitive issue, especially for tenants deeply protective of their privacy. To prevent any conflicts, it’s best to write down in the rental agreement when you can access the property legally, such as during regular property inspections and repairs.

key hanging in a front door lock

Prior to entering the tenant’s unit, you’re expected to send a notice in advance.

8. Prohibitions on tenant illegal activity

Your rental agreement should state restrictions, in terms of excessive noise, disruptive behavior, and drug dealing to avoid encountering this type of situation. In case it happens, eviction is also easier to do.

9. Pets

Since tenants with pets are multiplying, your rental agreement should state whether you allow pets or not in your rental home. If you decide to be a pet-friendly rental space, then be specific when it comes to restrictions on breed, size, and number of pets permitted in your rental home. Duties of a renter bringing in a pet should also be detailed to limit disputes.

10. Other restrictions

Review your rental agreement carefully to ensure that it adheres to State laws, local regulations, and Fair housing laws.

Check the maximum limit you’re allowed to collect for security deposits, how long the advanced notice period for entering the rental space, acceptable reasons for renters to end the lease early, and the required property disclosures (existence of radon, mold, and whether a property is in a flooding zone).

You can also mention the other important rules in your rental agreement, such as guidelines for utilizing the common areas of the rental, parking, and subletting.

Bottom Line

It’s essential to check the items included in your lease and make sure all the critical details are covered. If your rental agreement is complete, you’re bound to face reduced stress. Should you require expert support in managing your rental home which includes creating an outstanding rental agreement, Alliance Property Management can do it for you. Contact us today!