Having a completed lease document is essential to establish the basic rules that tenants will have to follow during the period of their stay. Therefore, a good understanding of the basics of the lease is of the utmost importance. Let’s find out what inclusions are necessary when preparing the residential lease.
1. Address of property and owner
The lease must begin by mentioning the address of the property being leased. Mention the full address, including nearby landmarks, city, state, country, and zip code. As the owner of the property, you must also mention your full name, address and contact information in detail.
2. List of names of all occupants
A section listing the names of all occupants must be included in the lease document. If there are minors in the tenant’s family, such as children or wards under the age of 18, be sure to list their names in the “Tenant’s Children” section.
3. Rental amount
The amount of rent per month as agreed with the tenants and the payment due date must be clearly mentioned in the document. If you want to impose a penalty for late payment of rent, this is the place to mention it.
4. Deposits and fees
Also list the amount of security deposit the tenant has paid or agreed to pay. This should also include maintenance charges deducted by you, which may or may not apply, depending on the terms and conditions set by you. Also, mention any other financial responsibility that the tenant must assume, such as the electric bill or the water bill.
5. Restriction of illegal activities
There must also be a section that clearly renounces the practice of any type of illicit activities within the premises of the property, the violation of which may allow you to take legal action against the tenants.
6. Notice period
The lease must also contain the notice period and that your tenants must inform you before this period in case they decide to vacate the premises. It is also advisable to have a notice period in case of non-payment of rent on time.
7. Property Maintenance Section
Include a section detailing tenant maintenance responsibilities, such as regular cleaning, trash removal, and maintenance of standard residential hygiene.
8. Property Modification Rules
You must also include a section that outlines the property modification rules, stating your authority as a landlord to consent to any modifications to the property’s paint, walls, decals, fixtures, signs, and displays.
9. Signature and date section
The lease must contain a section that the landlord and tenants must sign with the start date of the lease. You may also have a provision to monitor and attest to the deal by two witnesses.