What terms should you include in your lease?

On Behalf of | Jun 24, 2022 | Real Estate Transactions | 0 comments

As a landlord, a lease serves as the base layer for your relationship with your tenants. Having a good, strong and straightforward lease can make the difference between a great landlord-tenant relationship, and one that is not so wonderful.

Thus, it is important to understand what to put inside of the lease to make it a strong one.

Identifying important information

The Balance discusses essential clauses to include in a lease agreement. The first steps: identifying the tenant and landlord and identifying the property in question.

All tenants over 18 years of age should get listed in the agreement, and their addresses also included. Identify the name of the property in question too, if it has one. Include the house number, the apartment number the tenant will use, the street name, town, state and zip code.

All about the cost

Next, set the rental term, the rent amount, and the due dates. A rental term shows how long the lease will remain valid. Include the exact date, month and year. Most leases go by the year but can include month-to-month options, too.

One must also include the total amount of rent due and then break it up for the duration of the lease. This part also shows when each payment should get turned in and what potential penalties may be for late payments.

A tenant’s responsibilities

Tenant responsibilities outline the obligations of the tenant. This includes outlining the building’s rules and codes and discussing the tenant’s care of their property.

Finally, include the signatures of both the tenant and the landlord. This is what makes the document valid in the eyes of the court.