A Guide to Writing a Real Estate Lease Agreement
A clearly written real estate lease agreement is essential when renting property. This agreement is not difficult to prepare. It should contain certain elements to ensure all significant terms and conditions are clearly documented and agreed upon. The agreement must not conflict with applicable laws and regulations; otherwise terms are fully negotiable by landlord and tenant.
Basic Information
Every lease agreement should include the property address, property owner's name and contact information. Tenant information should be gathered for the legally responsible tenants and all other property residents. The tenant information must be sufficient to run credit, background and reference checks and can be written on a separate application form. The lease duration should be specifically stated as well as conditions around lease renewal. All responsible parties must sign the agreement for enforcement.
Rent and Deposits
The rental amount should be clearly stated with due date for payment and penalties for non-compliance such as eviction. A rental deposit should be required for landlord use in case of tenant property damage or other tenant monies owed. This deposit is typically refundable at lease end upon property inspection. A pet deposit is also preferable if pets are allowed for any pet damage that may occur. This deposit may or may not be refundable.
Maintenance and Repairs
The lease agreement should clearly spell out who is responsible for lawn care, routine maintenance, property repairs and other improvements. The landlord should ensure that reasonable property access is noted in the lease for such work to be performed. Most landlords assume responsibility for maintenance and repairs; this allows the landlord to control the process and ensure success. Some agreements provide the tenant pay for each repair up to a certain amount, with the landlord paying the remainder.
Other Items
The agreement should clearly state if actual tenant subleasing is permitted. Property insurance requirements for both parties also need to be documented. Indemnification and remedies under the agreement should be clearly stated. Permitted property use should be outlined. Required notices and its form should be recorded. Any rules or regulations the property is subject to, such as homeowner's covenants, conditions and restrictions should be referenced. Property abandonment implications should also be documented in the agreement.
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