How to Lease Space

Have your tenants sign a lease before you hand over the key.

Leasing a space involves more than presenting a clean space, finding occupants and handing over the key. To protect yourself and the property, you need to construct a lease as an agreement between yourself as the landlord and the tenants who are moving in. The lease is meant to protect you against the lack of rental payments and protect the property against vandalism or poor treatment in general. A lease is a legal document that must be upheld by both parties.

Instructions

1. Use a word processing document to start the lease agreement. Add the title to a document and the governing jurisdiction that is responsible for the area where the space is located.

2. Add your personal information, as the tenants should have the landlord's contact information in case of an emergency. Next to the address, add a space where the tenants can add their personal information. Provide a space next to the address, where you can specify the space being rented. Examples include house, apartment, room, office or storage. Ensure to mention if parking is available.

3. Clarify the conditions of the space in terms of furniture and appliances. Some spaces come fully furnished, while others are empty. In both regards mention if animals and smoking are allowed on the property. Landlords tend to be strict if their personal furniture is being rented compared to an empty space.

4. Clarify the rental period for the tenants. It should be specific, so include the day the lease starts and the day the lease ends. Include a statement that makes it clear whether the lease can be extended after it ends.

5. Explain how the monthly rent payments can be made, along with the security deposit and down payments, if applicable. Mention that rent increases may apply after one year of residency. In this regard, add the termination date and mention any penalties that may follow if the space is not vacant on the vacancy date.

6. Clarify whether the tenant or the landlord is responsible for remodeling or improvements to the property.

7. Create two spaces for signatures. One space is for you as a landlord and the other is for the tenant. Include additional spaces, so dates can be added upon signing.

8. Present this lease to any tenants who are interested in renting your space. Once the lease has been signed and the key has been handed to the tenant, you have successfully rented the space.

References

• Documatica Forms: Lease Agreements
• Government Lease Template: Lease Template