How to Make a Leasing Agreement
A leasing agreement is a legally binding document between a landlord and a tenant. As a landlord, having a written lease agreement in place protects you against problems that arise from tenants, such as nonpayment of rent or damage to your property. Once you and the tenant sign the lease agreement, you must both abide by the terms or face legal actions. When creating your own lease agreement, make sure you cover the essential elements and adhere to local landlord and tenant laws.
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Instructions
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Read the landlord and tenant laws in your state carefully. Each state adopts its own policies on rentals. You must follow these laws in your lease agreement.
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Determine the length of the lease. You can set the lease to run month-to-month or for a set time, usually six months or a year. Include the start and end date on the lease agreement.
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Determine what to charge the tenant for a security deposit. Include this amount on the lease with a disclaimer stating when you will return the security deposit and what deductions, such as cleaning, repairs or unpaid rent, you will take. Compare your amount and return time against your state laws to ensure you fall within the legal limits.
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Determine the amount of rent to charge the tenant. Include the rent amount in the lease. If the tenant moves into a property mid-month, prorate the rent for the remaining days, and include the prorated amount in the lease.
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Determine a due date for the rent and your late fee amount. Include these terms in the lease agreement. Many states will not allow you to legally charge a late fee unless listed in the lease.
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Develop a section on maintenance. Describe all of the maintenance you perform at the property and what repairs you will make. Most states require that you repair any damage that makes the property uninhabitable, such as a broken AC unit. Describe any routine maintenance the tenant must perform, such as grass cutting.
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Clearly list your rights to enter the premises. Verify the section on rights of entry in your state's landlord and tenant laws. Include this information on the lease to avoid any confusion.
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Include a pet clause. List your pet policy on the lease. Determine a pet deposit, if you allow pets, and list this amount in a clause section.
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Add your full legal name and the full legal name of any tenant on the lease. Add a signature line for both yourself and the tenants.
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Tips & Warnings
Both you and the tenant can make changes to the lease agreement before signing. Add any agreed changes to the lease in writing.
