How to Create a Residential Lease Agreement
You must follow proper protocol when deciding to rent out your home to another person. One essential step in the process is drafting a written lease agreement between you (landlord) and the renter (tenant). This ensures that both parties enter into the contract with an understanding of what is expected during the term of the lease. Generally, leases can last one year, a couple of months or even shorter periods of time. Written leases are especially important if a tenant damages the residence or fails to pay rent. A written document of your agreement with a tenant protects your rights as a landlord and strengthens your case if you end up in court.
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Instructions
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Indicate in writing who the lease agreement is between. Include the legal name of the tenant and landlord and the name of the property management company, if necessary.
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State the address of the residence in the lease agreement. The address should list the street name, house number, city, state and zip code of the residence.
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Include the exact date the lease agreement becomes valid and the exact date the agreement ends. Decide if you want to add a section that allows the lease to be renewed upon expiration.
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4
State the amount of the security deposit required before the tenant can move into the residence. Indicate if the deposit is to be returned once the lease expires and the terms and conditions that must be met by the tenant before receiving the refund.
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Document the amount of monthly rent and the due date in the lease. State the date in which the rent is considered to be late. If the rent is not received by its due date, put in writing the late-fee amount. This is an important piece of information if you are renting your home as a rent-to-own. If a percentage of rent payments are to be applied toward owning the home, state this amount as well.
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Write in the lease any additional payments the tenant must pay, including homeowners association fees, insurance, gas, electricity, trash collection and water.
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Indicate in the agreement if the landlord or tenant is responsible for upkeep and maintenance of the residence. For instance, you can write that the tenant is responsible for all yard upkeep and for all repairs inside the home. Also, be sure to state whether the tenant can make improvements and alternations to the home, such as adding wallpaper, painting and removing carpet.
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State in the lease agreement that you (the landlord) have the right to enter the property at will. Maintain the right to evict the tenant and the conditions in which you can initiate an eviction in the lease. Check with the laws of your state before wording this section of the agreement. Consult with an attorney, if needed.
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Write your policy concerning pets. State if you allow pets in the home, how many, what breeds and the size limit. Include if a pet deposit is required up-front and any monthly fees to be paid by the tenant.
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Tips & Warnings
Make a copy of the lease agreement and give one to your tenant. Keep the original lease in a safe place where you can refer to it later when needed.
