- While the function of a rental agreement is obvious, these contracts actually serve a function larger than just specifying rental length. Other rental terms, like acceptable behavior, exterior or landscaping responsibilities, repairs and maintenance and abilities to personalize the interior of the property, should also be included in the agreement. Additionally, the agreement should state the ability to renew occupancy and the potential price changes that may occur at renewal.
- There are a number of common types of rental agreements, which often affect the long-term stability of tenants. The most common agreement is called month-to-month tenancy. This agreement specifies that your tenancy is technically 30 days at a time. You have the right to terminate -- as does your landlord -- this agreement by providing a month's notice. It provides both you and your landlord flexibility, but little security. A lease offers more security for both you and your landlord. This agreement specifies a fixed period, typically 1 to 5 years, for your occupancy. Monthly cost may be fixed for the whole term, or increases should be clearly defined in the terms of the lease contract.
- Rental agreements contain features that stipulate the rights and responsibilities of both landlord and tenant. Features may include the tenant's ability to improve the real estate (paint, carpet, wallpaper, etc.), requirements to maintain cleanliness, noise levels, and pet control. Landlords responsibilities may include providing heat/air conditioning, lawn maintenance, or snow removal. Rental contract features are usually negotiable and a function of a landlord and tenant agreement.
- Considerations often differ between landlord and tenant. Landlords normally prefer longer-term tenants or the flexibility of rental cost increases on short notice. Tenants should consider their desire for long-term stability and cost increase protections. Long-term leases also include some restrictions of flexibility that both landlords and tenants should consider. Tenants hoping to purchase a home and landlords considering selling their property should consider the ramifications of long-term leases.
- Rental agreements affect both landlords and tenants in monetary and lifestyle issues. All agreements should be reduced to writing as disputes, if they pertain to oral issues, put undue pressure on judges and juries should a legal resolution be necessary. Written agreements also can keep both parties "happy" with their relationship. Tenants renting a primary residence can make a house a home without fear of crisis. Property owners with written agreements can feel secure that they will generate regular monthly income while having their property maintained properly.
