Parts of a Lease Agreement
Here is an enumeration of the important components of a lease agreement. Use this information as a guide when you are making your own lease agreement, and check with your requirements and needs what the important components are actually practical to include in your lease agreement.
- Tenants’ names. Both the first and the last names of the tenants should be included. The names that appear in the agreement would be the only ones considered as accountable for the lease.
- Lease Term. This is the length of time in which the lease is valid and counted. Usually, a year is enough for a lease term, especially in college towns. This is important; since it lets you lock the tenants to your property for a set period of time.
- Rent payment. Your home rental fee should be clearly stated in your lease agreement, as well as the date when payment should be made. You should also include other details such as the mode of payment that you accept, as well as the penalties and other consequences, in case the home rental fee is not given at the agreed time or day.
- Deposits. A lot of states across the country allow for a deposit of up to 1 and a half months rent. This is a security for unpaid bills or damages. Specify how much the deposit should be, where it would be deposited, when it would be returned and to whom would the returned deposit be given. It is also important to clearly state information about the home rental deposit’s interest.
- Charges, fees and fines. Aside from your base home rental fee, you should also specify other fees and charges such as for bounced check, late rent, court charges and city fines. It is also important that you specify that utilities are not included in your home rental fee.
- Responsibilities. Clearly enumerate all the responsibilities that you want your tenants to have. This is important, especially with regards to repairs. You should be clear about your home rental’s repair details, such as who should be informed when repairs are needed, what your lawn requirements are, and how garbage is properly disposed. You should do everything you can to take care of your home rental.
- Access to different premises. You should indicate what your expectations are in terms of the access you give to your tenants.
