How to Make a Lease Agreement for a Rental Property
All it takes is a short conversation and a handshake to make an agreement to rent property. However, you should always insist on a written lease agreement regardless of whether you are the landlord or tenant. Putting all important terms in writing will help avoid disputes later on. Drafting the lease agreement should be a straightforward matter since you are essentially documenting the terms you've already discussed.
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Things You'll Need
- Identifying information for tenants
- Standard fillable lease form
- Property rules
Instructions
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Obtain identifying information for all adults who will be occupying the property, regardless of whether you are leasing the property on the basis of only one or all of the occupants' credit worthiness. They should be able to produce a government-issued I.D. that you can verify and copy information from. All intended adult occupants should be named as tenants in the lease agreement, which they should sign prior to moving into the unit.
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Obtain a standard fillable lease form that was prepared for use in your state. These documents are readily available online, in legal stationary stores, and local libraries. Read the form prior to using it to make sure you understand the terms you need to discuss with the tenants.
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Prepare the form for signing based on your discussions with the prospective tenants. Include all basic information, such as lease term, monthly rent and due date, security deposit, responsibility for utilities, number of occupants and limits on occupancy, repairs and maintenance, and pets.
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Prepare a list of rules for your property as it relates to the tenants' use and conduct. They should include instruction on parking and use of common facilities, if any, such as a pool or laundry room. They should also list prohibitions with regard to being a nuisance to other tenants and neighbors, excessive noise, and all illegal activity. The rules should be attached to the lease agreement as an addendum.
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Present the prepared lease agreement with addendum for the tenants to review and sign. Good practice suggests that you require certified funds at the lease-signing to ensure you have the full first month's rent and security deposit prior to the tenant moving in.
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Tips & Warnings
If your property is in a rent-controlled community, check with the local rent stabilization board or other appropriate government agency regarding any local ordinances affecting your property. You will typically find readily available information on what terms and conditions must be included in lease agreement in light of the rent control rules.
Avoid using a standardized lease agreement form that is full of difficult to understand legalese. If you do not understand it, neither will your tenant, and this will only lead to future disputes. Look for forms written in plain, easy-to-understand language.
