A large part of ensuring that your rental property is successful is having a signed lease between all parties. When you have a well-written contract that’s signed, it signifies that everyone is in alignment with the stipulated terms and conditions of living on the rental property.
A lease provides guidance to the renters on what policies to follow and the duties they have to perform as a renter. It also outlines their rights, as well.
All of this is incredibly important, which is why we at Keyrenter South Florida have put together the following article:
What Is a Lease?
A lease is an agreement that covers detailed policies, terms, and conditions of a rental property. It should also include restrictions and disclosures under state laws. Consequently, both tenants and landlords are obligated to adhere to this contract.
What Is the Purpose of a Lease?
A signed lease is accepted as the contract that provides details of the rental terms and conditions. This is why it’s important to have a written lease as opposed to a verbal rental agreement as the latter would be difficult to present to the court.
Some landlords choose to forgo a written lease, as they are confident with their tenant relations and believe they will stay for the long term. But things can change, and it’s less risky to have a solid lease agreement between you and your tenants. This provides clear terms and conditions, reducing conflicts and confusion.
To create a lease, use a template. But it’s recommended to make a personalized lease with terms that apply to your own rental property. You should do this with the help of a great attorney or property management company.
What to Include in a Lease
Landlord and Tenant’s Names and Personal Details
It’s expected that the lease will include all the names of the parties to the agreement. The name of the rental unit and address must also appear. For the address, complete details are required, such as the unit number if it is relevant.
Rental Due Date
If your lease is clear on the rental payment dates, it ensures prompt payments from your tenants. It’s best to be specific and write the full date. For example, the payment due date is on December 1, 2022.
Rental Amount
To avoid misinterpretation, write down the rent amount in both words and figures. If you need to collect other fees, such as pet deposits, you can put them in another section of the leasing agreement.
Rental Period
It’s recommended to state the complete rental period in the lease. For example, from January 1, 2023, to December 31, 2023.
Signatures of All Parties
Signatures of the landlord and tenant must appear on the leasing contract to represent they understood the covered terms and conditions.
Important Clauses to Include in Your Lease
Even if policies are different in each rental property, clauses are similar given they must adhere to State laws. Here are clauses to consider for your leasing agreement:
Subletting
Subletting means allowing your tenant to add another renter to share the rent fee. Landlords who permit this arrangement commonly ask the tenant to seek their authorization or allow the landlord to screen them, first before taking in a new occupant.
Rights and Responsibilities of the Tenant
For this clause, you can detail the responsibilities of the renter in cleaning and maintaining the rental unit and minimizing property damage. You can also include the right to privacy in this section of the agreement.
Rights and Responsibilities of the Landlord
You can state the landlord’s responsibilities under this clause. You can also specify the time period for repairs upon receiving the request from renters. Notice periods are also mentioned here for property inspections. Go over the State laws to ensure you provide the correct information.
Termination of the Lease
This clause will provide acceptable terms for ending the lease and will state penalties as well as the period that renters can terminate the agreement. This is also where renters can read up on the specific reasons that grant early lease termination under the law.
Among the reasons accepted are experiencing landlord harassment, being called to military duty, and domestic violence. If other reasons are accepted by the landlord for early lease termination, they should be stated clearly in the leasing agreement.
Security Deposit
This is where the landlord can input the full security deposit amount required from the tenants. Collecting a security deposit creates an incentive for the renter to keep the rental unit damage-free. Once the tenancy period is over, outside wear and tear will be accounted for and the repair fees will be taken out from the security deposit.
For clarity, you can list down situations that constitute wear and tear and what falls under property damage. Remember to also review the State law when it comes to how the security deposit must be stored. The law may require you to place the deposit in an account that bears interest.
Disclosures
Landlords must disclose the presence of the following in the leasing agreement:
If the property is in a flood zone area. Existence of bed bugs, radon, or lead-based paint
Bottom Line
Even if crafting a leasing agreement is additional work for you, it can benefit you by limiting disputes with your renters. It also saves a lot of time as the tenants can check the lease first before consulting you on any issue.
You can also hire a trusted property manager who has the expertise to create a solid leasing agreement for you. Contact Keyrenter South Florida today!