Looking for a new apartment can be time-consuming. Aside from getting a suitable one, you still have to be concerned about the rental contract agreement. However, this is an important contract that would protect your interest as the tenant and that of the landlord.
As a new homeowner, you should know that rental contract agreements are vital documents that will legally protect your property. But what are rental contract agreements? You may be curious about how a document can protect your interests without putting you at risk of losing it all.
Well, there are several reasons why rental contract agreements are important, most of which will protect the interests of both the house owner and the tenant. And that is why, in this overview, we will be providing more insight into what a rental contract agreement is and everything you need to know about rental contract agreements.
Housing Rental Contract
A housing rental contract (or lease contract) is a legal document that widely elaborates the terms and conditions that a new tenant must abide by while they rent the commercial or residential building from the house owner. Regardless of the size or structure of the property, you must protect your interest through a rental contract.
When a housing rental contract is well drafted, the property owner and the tenant can rest assured that their interest is well-protected from future legal battles. The stability that comes with rental contracts is one of the reasons why they are necessary.
A lease contract will most likely protect your interest as a tenant in different ways. With the contract, the house owner cannot increase the rent, except if there is a review of the contract.
A standard housing rental contract should detail your needs and wants for the time frame on the contract.
A rental contract is flexible and can be reviewed at any time if one party is not responsible for keeping their part of the contract.
What Does Rental in Contract Mean?
A rental in the contract means the rent (lease) agreement. A rental contract is a legal agreement between the property owner and a person wanting to rent the property.
This legally binding contract includes terms and conditions a renter, and the property owner must follow.
The contract is helpful to both landlords and tenants. When it is well drafted, it will help prevent any problems that arise in the future.
What Is Contract Rent With Example?
Not to be mistaken for a rental contract. Contract rent is the outstanding monthly rent paid to the property owner. It usually includes payment for maintenance, utilities, and services. Contract rent is payments house owners use for maintaining the property.
However, a contract payment does not include administrative or late payment charges (such as stamp fees). Usually, a contract rent does not cover the payment for rental deposits or a different rental agreement.
What a Landlord Cannot Do?
A rental contract comes with a lot of benefits, and that includes making both parties responsible. Although the landlord is the owner of a building, there are some things a landlord cannot do.
Here are a few things a landlord cannot do:
#1. Send a tenant out:
A landlord cannot send a tenant out without giving the tenant an extended notice of 30 days.
#2. Refuse repairs:
A landlord cannot refuse to fix damages in the building.
#3. Improper entry:
A landlord cannot enter the home of the tenant without notice.
#4. Discrimination:
It is illegal and unethical for landlords to discriminate against tenants. If you believe a landlord refuses to rent out his property because of your religion, race, sexual preference, disability, country, or status, you have the right to sue.
#5. Removal of properties:
Regardless, the house owner cannot enter or remove your properties without your permission. Also, your landlord cannot change or remove your locks without notice. If you are unavailable or notified before this, you have the right to sue.
#6. Eviction:
A landlord cannot evict the tenant with an official court order. One of the benefits of rental contracts is the power given to tenants. Your landlord cannot evict you without a quit notice.
#7. Rents:
A landlord cannot suddenly raise your rent.
As long as the legal contract is still valid, the landlord cannot raise your rent.
What Are 5 Things That Should Be Included in a Rental Contract?
A rental contract agreement should be able to outline the major aspect of the rent. And that is why you must read carefully before signing the lease agreement.
The first section usually includes the name of the parties involved (landlord and tenant(s). Also, this section will include the date on which the contract is made effective. But what are the main things that should be in a lease?
Here are the 5 things that should be included in a lease:
#1. The premises:
This section usually documents the main address of the building.
The address of the property will be under the section of the premises. It usually includes the address (the state, city, zip code, and others). Also, the type if the type of the rented building should be included, whether it is a condominium, house, or apartment.
#2. The terms:
In A lease contract, the terms usually include the date on which that tenant can move in and the lease end day when the contract will be over.
The premises will be made easy on the said date of the contract. You can opt for a fixed-term agreement or a short-term rental contract.
With a fixed-term contract, you agree to a 6-month or 1 to 3 years duration of stay. During this period, you can choose to pay on a monthly or yearly basis. However, with a short-term contract, the duration is usually from a month to 6 months. During this term, you can choose to pay every month, depending on the agreement.
#3. Rent:
In this section of the agreement, the agreed amount to be paid monthly should be included in the contract.
The rent payment terms can be on a monthly or yearly basis.
It is important to note that rent payment does not cover the cost of repairs or maintenance of the building.
#4. Deposit (Security amount):
In this section, the first deposit amount will be included.
This is usually the first month’s rent, although in some cases, it also signifies the security amount for maintaining the house. Nonetheless, security deposits are non-refundable.
#5. Final signature:
There are details in a rental contract that require both parties’ agreement. Once both parties agree, they can finalize the legal contract with their signature.
In the signature section, the name of the house owner and the tenant will be included with the current date.
Once you finish discussing the details with your tenant, remember to:
Rental Contract Agreement
Rental contract agreements are short-term, legally binding documents between a house owner and a person seeking a temporary resident for lease. Depending on the terms of the rental contract agreement, the agreement can last for a longer or shorter duration.
Is a Rental Agreement a Contract?
Yes, a rental agreement is a legally binding contract between a building owner and a person who wishes to rent the building for a specific time frame. Often, a rental agreement usually lasts for a short term.
A rental agreement can be renewed or reviewed. One important aspect of a rental agreement is that it protects the interest of both parties (the landlord and the tenant(s))
What are the 3 Types of Rental Agreements?
There are different rental agreements, most of which can be used for basements, condos, movable homes, townhouses, studios, apartments, and more.
Here are the 3 types of rental agreements:
#1. Automatic Renewal rental contract:
This contract renews itself automatically without needing to draft a new rental agreement. It is one of the most commonly used contracts because it is less stressful. The contract ends only when the tenant leaves the building, or the landlord serves a notice to end the contract. Depending on the set time on the contract, it will automatically renew the lease.
#2. Fixed-Term rental contract:
A fixed-term rental contract is a long-term rental agreement between a tenant and the property owner. With a fixed-term contract, the agreement cannot be terminated early except if both parties agree.
A fixed-term contract usually has a start and end date. However, you can choose to renew your contract.
#3. Short-term rental contract:
This is also one of the commonly used rental contracts. A short-term rental contract is a monthly to monthly rental; they do not require much. A short-term lease usually lasts between 1 and 6 months. The contract can be easily renewed if both parties still want to continue with the terms.
Sample House Rental Contract
This rental contract (“Lease”) is made and effective this [Date should include the day/month/year] by and between [Landlord/agent/apartment community] and [Tenant One] and. or [Tenant Two] located at [address: City, State].
Premises. The landlord/agent/apartment community hereby rents the house dwelling at [address of the property/apartment: City, State] to the tenant(s).
TERM. The term of this contract shall start on [Move-in Date] and end on [Lease End Date]. The tenant in this agreement is to rent from the landlord according to the terms and conditions of this agreement. The Landlord/agent/apartment community shall provide the building as soon as possible, and Tenant’s obligation to pay rent shall abate during such period.
RENT. The tenant will pay without demands to the Landlord/agent/apartment community as rent for the building the agreed amount [Monthly Rental Amount] per month/year of each calendar, at [Address for Rent Payments] or at such other place as the Landlord may wish. The landlord/agent/apartment may impose a late payment charge of [Late Pay Charge] per day for any amount that is more than five (5) days late.
SECURITY DEPOSIT.
Immediately after the finalization of this rental contract, the tenant will pay a security deposit of (amount in the figure) to the Landlord.
As security for the performance by Tenant of the terms of this Lease to be returned to Tenant [With or Without Interest] following the full and faithful performance by Tenant of this Lease. The Landlord/agent/apartment complex will keep the security deposit as collateral for the Tenant’s performance of its obligations under this Contract Agreement. The landlord may, but is not limited to, use cash from the deposit to make repairs in the event that damage to the house is brought on by the tenant, the tenant’s family, friends, or guests; nonetheless, the tenant is still responsible.
Signatures.
Landlord’s signature:_________________________ Date:_________________
Printed Name:_____________________________________________________________
Tenant’s signature:_________________________ Date:_________________
Printed Name:_____________________________________________________________
Tenant’s signature:_________________________ Date:_________________
Printed Name:_____________________________________________________________
Conclusion
A rental contract will assure you as the house owner that you will receive your rental income at the appointed time of the month/year. And when this income is not forthcoming as expected, you have the legal right to rent it out to another. We hope this article serves as a guide on what RENTAL CONTRACT Agreements is all about.
Rental Contract FAQs
Can I write my rental contract?
Yes, you can write your rental contract or use our template as a guide for the contract.
Who needs the rental contract agreement?
Anyone interested in renting an apartment and the landlord needs a rental contract agreement.
How do I make a rental contract official?
To make a rental contract agreement official, you must involve your lawyer or take it to court.
- LEASE VS RENT HOUSE: What are the Key Differences?
- BUYING A RENTAL PROPERTY: Tips on Buying a Rental Property (Updated 2023)
- CAN A LANDLORD BREAK A LEASE?: What to Do When Your Landlord Breaks Your Rental Agreement
- LANDLORD INSURANCE: Coverages, And Costs
- BUYING RENTAL PROPERTY: Tips For Buying Rental Properties
References
