Home Leasing Agreements
Renting out a home is a big responsibility. After advertising, screening tenants and making the property rent ready, you must pay attention to the contents of your lease agreement. These contracts may differ, but there are standard clauses that should be included in every lease agreement. Know what these important details are so that you don't leave out any pertinent information that can cause you to lose money.
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Tenants
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The names of all adult occupants should be listed on the lease as well as the names of all minors who will be occupying the home with the adults. This is vital because each adult must be legally bound to pay all of the rent every month. This will avoid the problem of finger pointing if the rent is late or not paid at all, and it will keep you out of the middle of any personal disputes about the division of each portion. Every tenant should be background screened prior to renting and must sign the lease and any addenda. As a way to prevent other adults from living on the property without your knowledge, include a clause stating that no visitors may stay for more than 14 calendar days without applying for tenancy and being placed on the lease.
Rental Rate, Deposit and Term
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The monthly rental rate and term of the lease, such as annual or month-to-month, must be specified in addition to the amount of the refundable security deposit. Write down the date that the lease takes effect and the day that it will expire. In addition, divide the monthly rent by 30 and write this daily rate on the lease. This is the amount that will be due to you each day that the tenant remains on the property after the lease expires.
The day that the rent is due each month and the date that it is considered late also are detailed. If payment is made after the late date then a penalty fee is assessed. Specify the charge for insufficient funds checks. Some states have limits on late charges and fees for bounced checks, so check with your state department of housing or local apartment association prior to completing this clause. If the tenant does not pay rent, detail the consequences, such as eviction and credit impact.
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Additional Clauses
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Specify who is responsible for payment of the utilities. It is standard for tenants of single-family homes to pay for all utilities and trash service. Some owners will pay for water, but it is not required unless you are competing in a rental-saturated market. Also, if you expect the renter to pay for small repairs and additional expenses, write the maximum amount of out-of-pocket funds that the tenant must spend until you will cover the difference. Describe when you are allowed to enter the premises. Standard lease agreements state that the landlord may enter if there is an emergency, the property is abandoned, to make repairs or for any reason after given a 24-hour notice.
Addenda
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Depending on the type of lease that you use or one that is required in your state, you may have options for applicable addenda to include that are not part of the standard lease agreement. A common addendum is the pet agreement. This will specify rules for the tenant's pet, such as size, and additional rent or security deposit due. If the property has a pool or access to one then the rules for use should be attached to the lease. Also, since the landlord's commercial insurance policy for the property will not include personal belongings, the tenants should be formally notified that you recommend they purchase renter's insurance to cover damage to any of their valuables. If applicable, the tenants should be given an agreement that explains how to care for smoke detectors. As a general addenda, house rules may be emphasized. Clauses in this agreement relate to noise and conduct, cleanliness, safety, maintenance and parking.
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