The rental agreement should describe the type of property. Is it a residential property? Is it a commercial property? All these details should be there.
The amount of rent the tenant is expected to pay should also be included. The landlord should also include the deposit the tenant should pay in order to secure their property.
The names of the landlord and tenant or the real estate agent finalizing the leasing process should be included in the agreement.
The amount of time or the period in which the tenant is to be in the property should be clearly defined in the agreement. The day the tenant acquires the property should also be recorded.
The way both parties expect each other to maintain the property should be clearly outlined. Tenants should maintain the property to its standards while Landlords should be sure to attend to any complaints and repairs.
The terms to which the rent is supposed to be paid and the exact date should be included in the agreement.
The agreement should contain terms in which the rental or lease terms can be ended. It should also contain measures that the parties can follow to resolve their disagreements.
Termination of tenancy could be a result of many circumstances, e.g. an eviction notice by the landlord, expiration of the tenancy, tenants ending their stay due to circumstances such as security issues, etc. The law defines what processes should be followed in such cases.
Tenants who want to end their stay should give the landlord a prior notice. For example, one month's notice before they plan to leave. Landlords who also wish to end a tenancy must provide notice. This notice should also include the reason for termination. Once the tenant receives the notice, they should start preparing to vacate immediately or work within the period provided.
Tenants also have a role to play to contribute to an efficient tenancy.
Landlords and tenants should understand their obligations to each other before entering into the contract. It is also very important for them to keep clear communication. It keeps both the landlords and tenants updated. Landlords could communicate an increase in rent or any other policies they might have updated. Tenants in turn can communicate any repairs and damages.
A rental agreement provides a framework that is essential for solving disagreements. It also sets clear guidelines for how to go about maintenance and repairs on the property. Terms and conditions contained in this agreement ensure smooth tenancy. The landlord and tenants should also try to involve a third party during the finalizing process. This witness, who is neutral to the situation, ensures that both parties understand each other
Lawyers can always help you avoid legal disputes that could otherwise cost you a fortune. They can identify errors in the agreement which otherwise you wouldn’t. A lawyer will be helpful when you want to negotiate a better deal. They work to protect your rights and interests. They can help set terms that are favorable to you. Lawyers can also be involved in drafting the contract. So, it is important to involve one while doing your real estate dealings.
A: There is no specified format for a rental agreement. However, it should contain the key elements mentioned above.
A: While it is possible to have an oral rental agreement, it is important to have a written one because it also serves as legal evidence.
A: The length to which a tenant can stay in a property is flexible and totally up to them. However, a minimum of one year is recommended for a stable contract.
Book a demo with us to learn how Bomahut can help you improve rent collection and save time on property management tasks.