A rental or lease agreement is a legal contract which defines the rules which landlords, property managers, and tenants agree to abide by during their rental association. Here are some critical points which you should cover in your rental or lease agreement:
All tenants should be named: The name of every adult who will be living in the rental home or condo should be listed as tenants and should be signatories in the agreement even a married or unmarried couple. With this every tenant becomes legally responsible for the rent, the proper use of the premises and all terms in the agreement. This provides you with additional cover since each tenant is independently responsible for payment of the entire rent, should the others not be in a position to pay. Further, if one tenant breaks an important term of the agreement you are able to terminate the rental or lease agreement which is binding on all tenants.
A limit on occupancy: In your agreement you should clearly mention that only those adults who have signed the agreement and their minors will reside in the rental unit. This gives you the right to decide who lives in your rental property and to restrict the number of residents. This term allows you to evict a tenant who sublets the unit or who moves in a relative or friend without your consent.
Period of tenancy: Your rentals document should clearly state if it is a fixed-term lease or a rental agreement. Rental agreements typically run from one month to the next, and unless terminated by any of the signatories, renews itself. Leases generally last a year. The choice is yours and will depend on for how long you want to rent your premises or how flexible you want your agreement to be.
Rent: Your agreement must clearly stipulate the amount of rent payable, when it is to be paid and how. Spell out what payment methods are acceptable to you. If you are OK with a grace period be clear about the number of days, and if you are going to impose a penalty after that, mention the amount. Mention charges in case of a bounced rent check.
Fees and Deposits: Security deposits are a cause of much friction with tenants. To avoid this, in your rental agreement clearly state:
The amount of the security deposit
How you may apply it – to damages etc., or how the tenant may apply it – toward the last month’s rent.
How and when the deposit will be returned and details of deductions.
Any non-returnable fees like for pets or cleaning
Where the deposit is being held and whether interest on the deposit will be paid to the tenant.
Take the Burden off of Your Hands
Landlords and property investors of rental properties in and around the Charlotte region of NC can avail of property management services from Talley Properties Inc, the oldest property management company in the area. The company offers a slew of services which are more fully listed at http://talleyproperties.com. Its area of expertise is in mid-range to high-end residential and commercial properties.