A rental agreement is a legal contract between an individual or business (the “landlord”) and a tenant that outlines the terms of a rental property, including the rights and obligations of each party. This document serves to protect both parties and outlines the specific stipulations, such as rent amount, pet policies, security deposits, guidelines for maintenance and repairs, and other related topics. A rental agreement should be signed by both parties before the tenant occupies the property.
Creating a rental agreement for a residential or business property need not be intimidating. While laws may vary by state, here are some of the basics that should be included in any successful agreement:
1. Date of Agreement and Identification of Landlord & Tenant
The rental agreement should include the signed date, as well as the names and contact information of the landlord and tenant. If more than one tenant is occupying the property, all tenant names and contact information should be listed.
2. Terms and Conditions
This section is important, as it outlines exactly what is expected from each party. Details such as rent due date, security deposit, pet policy, subletting standards, repair and maintenance guidelines, and payment methods should be included in this section. A detailed set of termination procedures and circumstances should also be included.
3. Signatures
Both the landlord and tenant should sign and date the rental agreement. Some states may require witnesses to sign the agreement as well.
Conclusion
By working together to create a detailed, mutually agreed upon rental agreement, landlords and tenants can avoid potential conflicts down the line. With a thorough, legally valid agreement in place, both parties can have confidence that their rights and obligations will be upheld.