How to Draft a Rental Agreement

Drafting a rental agreement that outlines the terms of the lease is one of the first steps to renting a property. A rental agreement is the primary legal document between the two parties. It lists what is expected of both parties and what happens if the terms of the lease are broken. When drafting a rental agreement, consider the terms that are important to you and include specific items that are essential in every property leasing contract.

Instructions

1. Type "Rental Agreement" at the top of the document in bold letters, so it is clear what the document is.

2. List the names of the parties in the agreement. The first paragraph of your rental agreement should introduce your name as the "landlord" and the names of your tenants as the "renters." List the exact physical address of the property that you are renting.

3. In the second paragraph, specify the amount of money the tenants owe at the beginning of each month, the date the lease agreement begins and the date the lease agreement ends. Specify any security deposit that is due at the time of the signing of the lease. The ending date of a typical lease agreement is exactly one year after the date of the beginning of the lease, but you may set the terms of your lease agreement to your specifications. Indicate any late fees that are due if the monthly rental payment is not received by a specified date at the beginning of the month.

4. Outline the terms under which the tenants are renting the property. Indicate that the tenants must abide by all federal, state and local laws while on the premises, that the tenants must treat the property as if it were their own and that they are responsible for any damages they cause to the property beyond normal wear and tear. It is common to require tenants to agree to alert you if they bring pets onto the premises and that they pay a pet deposit to cover any damages that pets cause. Tenants should agree to respect the neighbors. Add any other terms that you deem important.

5. State what happens if the tenants break any of the terms of the lease agreement. State that tenants can be evicted for non-payment of rent, breaking federal, state or local laws or causing severe damage to the property. State any additional fees for which they are responsible if they are evicted. State any other consequences if the tenants violate terms of the rental agreement.

6. Indicate that the tenants should alert you to any problems with the property, so you may repair them in a timely fashion. State that you agree to keep the property in an acceptable living condition. Include any other property issues for which you agree to be responsible.

7. Type the date that the lease is signed at the bottom of the agreement, sign the document and have the tenants sign it.

References

• All Business: Ten Tips on Writing an Airtight Lease Agreement

Resources

• Mr. Landlord: Basic Rental Agreement or Residential Lease
• Penn State University: Sample Lease or Rental Agreement