In a rental business, creating legal contracts is inevitable. It could be a lease agreement drafted for new tenants or a rental agreement for a property. The following steps are to create a legally binding lease agreement for rental property.
Outline the Parties in the Contract
Start with providing a list of all the parties in the contract. In this case, it is the landlord and tenant. The name of your organization or company is to be written on top of the contract for identification purposes. You will also have to identify yourself as a landlord, property owner, and manager of your renting property. Provide your address and contact details for inquiries and emails.
Information on the Landlord Business
Provide your personal information and your business details. Include your name, mailing address, and telephone number. Ask for email contact information in case you need to communicate with any of your tenants or clients regarding questions or issues regarding their rental property lease agreement from this company (you).
Information on the Tenant
Please provide the name of your Tenant and information regarding their residential or permanent address. It is good to mention whether the Tenant is occupied within your rental property by someone with you or if they are a new tenant. If they are new, this gives the landlord some extra time before entering into a legal lease agreement. Provide their phone number and email address so you can communicate with them about any issues with their rental property lease agreement from this company (you). If you don’t do this it can lead to LPC licensing problems.
Grounds of the Agreement
With this section, you should include the most important and foremost reason you create a legally binding lease agreement for your rental property. The main reason could be to protect yourself from any legal issues or liabilities arising from this rental property lease agreement. For example, if your Tenant has defaulted on their payment, then it will be your responsibility to ensure they are not getting a refund of their monies.
You can also include information regarding why it is crucial to enter into a legally binding lease agreement for the rental property. For example, you may want to protect yourself from any legal claims or liabilities arising from the rental property lease agreement.
Terms of the Agreement
The terms or conditions of this rental property lease agreement need to be clearly defined at the start. This should include any rules and regulations about pets, smoking, parking, etc. It is also essential to consider any special requirements for a tenant, such as special feeding or feeding timetable for a pet, mess clean-up, and other conditions that need to be met by the Tenant.
Non-Reliance on Termination Clause in the Agreement
Including a termination clause in your rental property lease agreement is highly advised. This is because you may need to end this contract with your Tenant without further notice, or legal complications will arise because of this. If your Tenant decides to end the contract, you should be free from legal consequences.
Clause of Agreement Duration
Including a clause in this rental property lease agreement regarding the duration of the contract is essential. This is important as it is illegal for a landlord to enter into a long-term lease agreement and evict his Tenant when no other tenants accept the same kind of rent from such a location.