Credit portal




How to Create a Residential Lease Agreement

Where there is a landlord, there will also be a tenant, and it is no surprise that these two parties can only work together once there is some sort of agreement, contract or a binding deal in place. Back in the day, when most of the emphasis was not on legal issues, courts and tribunals, there could be verbal and oral agreements and that would be enough. A man’s word was as good as it got, and that would be the end of it. Nowadays however, this is not enough and in order for the landlord tenant relationship to work, one would have to take the legal issues seriously. The agreement or contract that binds a landlord and his/her tenant together in a legal responsibility to act the process out is what you would call a “lease agreement”.

There are many ways to go ahead and draft a lease agreement. There are also many legal officials at your disposal to aid you with the process. The only issue with such professionals is that they will do all the work, and only a handpicked few will actually explain what your lease agreement has written within it. You can however, go to a legal professional that you trust and allow him/her to draft the lease agreement and then explain it to you and your potential tenant, so that both of you know what is to be expected once both enter the agreement. One should realize that the lease agreement is extremely important simply because there are many clauses in it, that are both important for the landlord and the tenant. If you feel that you cannot find a suitable person who can draft a lease agreement for you then you can alternatively draft one yourself.

The procedure for that is very simple, all you have to do

is make yourself familiar with a few steps and instructions and be clear about what and what not to have in a lease agreement. A lease agreement should for example, have the all the clarified clauses that make the document legally acceptable, and a referenced addition of the house rules so that you tenant is clear about what he/she can and cannot do within the home. When you draft a lease, it is also important because you have the power, as a landlord to strengthen your case should the tenant violate any clause or part of the agreement.

To know how to create the lease agreement yourself, follow the instructions. Firstly, you need to make sure between whom the agreement is being made. You should specify the name of the tenant and your own and if any property management company is involved then they should also be included. Secondly, you should include the address of the rental space as well. The address should the house number, city, state and the formal zip code. Thirdly, make sure you specify the precise date upon which the lease agreement becomes valid, and the precise date upon which it is scheduled to end. Within this point, also be sure to give a mention to the security deposit, and if it will be given back and what terms and condition apply, before the potential tenants gets this formal refund.

Next comes the part where you specify the amount of rent the tenant will have to pay. This is an important part of the lease agreement and you should also include the due date. What will be considered a late payment and the late fee should be mentioned. In the end, also state if the landlord has the right to evict the tenant when he wishes.

POSTED August 01 2012 6:53 PM

Category: Credit

Similar articles: