Housing is one of the most essential requirements for human survival. As the human population grows, so too does the need for accommodation. Families need housing for accommodation, and businesses need space for their commercial undertakings. And this is where leasing comes in.
A lease agreement is one of the most important components of real estate transactions. If you own rental property, it is important that you have a lease contract in place before letting tenants in. But, what makes a good residential lease contract?
Outlined below are three must-haves in a residential lease contract.
Parties to the lease
A lease contract must always begin by naming the parties to the agreement. This means that the agreement must clearly indicate the name of the landlord as well as that of the tenant.
The property under lease
The lease agreement must specify the property under lease. This should include the house number, street address, city, state as well as ZIP code. If the tenancy agreement is restricted to a specific room within the premise, then that space should be clearly described along with any other areas that the tenant will have access to. These may include the common area, kitchen and/or parking spaces.
Rental terms
The monthly rent as well as other expenses must be clearly indicated in the lease contract. The same applies to the lease period. The lease agreement must clearly state the beginning and the end of the lease period. If the start date is not clear at the time of signing, the agreement should have a clause specifying how the commencement will be determined. For instance, the clause can state that the lease will come to life 30 days after the tenant is notified that the property is ready for occupation.
A lease agreement is an important document in any landlord-tenant relationship. A carefully-written lease contract can go a long way in preventing landlord-tenant disputes.