Common use of A RENTAL OR LEASE AGREEMENT Clause in Contracts

A RENTAL OR LEASE AGREEMENT. This is a legal document entered into by both a landlord and a tenant before the rental or lease begins. The landlord rents or leases the property to the tenant in exchange for rent paid to the landlord. In a rental agreement, the length of the rental period is generally month-to-month and is shorter in duration than a lease agreement. In a lease agreement, the length of the lease period varies but is generally 12 months or so and longer in duration than a rental agreement. The agreement formally lays out the terms and conditions of the rental or lease and describes the rights and responsibilities of both parties in relation to the rental or lease of the property. The document protects both the landlord and the tenant and both parties should keep a signed copy of the agreement, which can be referred back to in case of any issues or disputes relating to the property. WHAT IS TYPICALLY INCLUDED? Your document should clearly set out all of the terms and conditions associated with the rental or lease of the property. Rental and lease agreements typically include the following: - Details of both the landlord and the tenant. - Location of the residential property and description of any items that are included or excluded from the rental or lease. - Length of the rental or lease period. - Amount, frequency and the method of payment of the rent. - Procedures on collection and late charges, if any, if the rent is not paid on time. - Details of any security deposit that the tenant must pay to the landlord. - Insurance requirements for either the landlord or tenant. - Details about additional charges which the tenant may be responsible for during or after the end of the tenancy - Details about who is responsible for payment of utilities (e.g. electricity, gas and water). - Details regarding the property in the event of a fire or other disaster. - Large Details on the landlord's right of entry and access to the property. - Maintenance and repairs of the property. Depending on the discussions between the landlord and the tenant, other items may be included in the agreement, such as specific rules and regulations regarding guests, pets or smoking or procedures for renewal. While a landlord may want to use a standard agreement with a new tenant, if the tenant and landlord have verbally agreed upon certain items prior to the rental or lease, the tenant should ask for these additional provisions to be included in the agreement. WHAT CAN A RENTAL OR LEASE AGREEMENT BE USED FOR? These agreements can be used to formalize the rental or lease terms for most types of residential property to a tenant, including, houses, house boats, duplexes, lofts, apartments, rooms in larger properties, townhouses, studios, basement suites, or other such living spaces. WHEN SHOULD A RENTAL OR LEASE AGREEMENT BE USED? An agreement should be used every time a residential property is rented or leased to a tenant. A residential rental or lease agreement should not be used when a property is rented or leased for commercial purposes and/or the property is to be used only for commercial purposes. The agreement should be created and signed before a tenant has moved into a residential property. ALTERNATE NAMES A rental or lease agreement may also be known as: - Tenancy Agreement - Rental or Lease Contract - Rental or Lease Form