A rental agreement/lease is an essential legal binding document that ties to protect both sides of the agreementâ both the landlord and the tenant. The written agreement, signed by both parties and their respective lawyers, and then notarized by a notary public, makes it a legal contract based on The Landlord-Tenant Law.
The contents therein enumerate the responsibilities and obligations requires of the person acting as the landlord, referred to as the lessor, and the tenant, called a lessee. The contract includes the length of the validity of the agreement, while specifying rental fees, the procedures of paying the rent, and the responsibilities of the tenant while they lease the property. Noteworthy, if either of the parties breaks any of the conditions of the rental agreement, it ceases to be binding. The offending party might even be a target of legal action due to their breach of contract, and must face its subsequent penalties.
Landlord legal requirements. The landlord must first know the difference between what's required in a lease and what's required in a rental agreement so he or she can prepare the proper documents. A lease agreement is typically longer, spanning a year or more. On the other hand, a rental agreement is much shorter contract, typically lasting 30 days. There are various kinds of leases: residential, commercial, industrial, and land. But whatever kind of lease a tenant issues, there are certain requirements he or she must fulfill; the primary one is the adherence to all the building codes for the property. The landlord must also keep the property safe, clean, and habitable. Aside from those, a landlord is expected to maintain common areas, perform essential repairs, and update all vital services, such as running water, plumbing, heat, and electricity. Proper trash receptacles are also expected form the one leasing the property. Moreover, a landlord is expected to comply with the covenant of quiet enjoyment, meaning he or she cannot interfere with the tenant"s daily life, not unless it is an emergency that requires intervention.
Tenant legal requirements. Attached to their "possessory interest", tenants also have specific duties that they have to perform in order to keep the validity of the agreement. The number one requirement is the duty to pay rent. Failure to do so endangers the validity of the agreement. In commercial properties, a duty to operate may be written in the agreement, meaning a rented facility cannot be left vacant without any operating business for which the agreement was drafted in the first place. Tenants are, of course, also expected to take up daily maintenance and hygiene in the property. Deliberately not making waste so as to preserve the integrity of the property is expected. Displaying destructive behavior to the property is subject to cancellation of the agreement. Most agreements stipulate that the property shall be returned to the lessor in the same condition when the move was made. Failure to do so may cause some deduction or even forfeiture of the security deposit given by the tenant before the move.
Common additional clauses. Adding important addendums, disclosures, and clauses are also a necessary part in drafting the rental agreement. These are specifically written to satisfy the state and city landlord-tenant laws. These are typically written in legal jargon and carried out by a lawyer. Some of these clauses may include: rent liability meaning the full rent amount must be paid and all parties are expect to be responsible for the monthly full amount. Another example is a severability clause, which protects the rest of rental agreement should one portion be declared invalid by a court. There is also an existing clause for called access to property. This balances the landlord's rights to access the property during an emergency versus the tenant's right to keep privacy. There are many more clauses which the lawyer can help thresh out for the benefit of both properties.
Differences by state. Thanks to the advent of Google, there are now many rental agreement forms, which can be viewed online. The majority of them are a good jump off point so both lessor and lessee can get a glimpse of what is expected for each of them. That being said: never rely solely on agreements available online. Refrain from using them blindly, but instead, consult a legal profession because each state has specific laws and each town has their own ordinances that they enforce for something like security deposits, fair housing, and the like. These need to be followed down to the last letter so that it will be legally accurate in protecting both parties from any possible misunderstandings.
Renters insurance. Another term for this is tenant's insurance, which is a policy that provides liability insurance in case something untoward happens. This also covers the tenant's personal property in case of situations like theft, vandalism, fire, and flooding. In case the property becomes uninhabitable, they provide coverage for a new place of dwelling. Renters" Insurance is a necessity in conjunction with the agreement. The aforementioned details are some things to keep in mind when drafting an agreement. It must be remembered that the terms are set in stone until the expiration date unless both parties come to an agreement on changing the terms. Moreover, when the agreement expires, it is not renewed automatically, reverting a monthly scheme until a new one is signed.