Residential lease agreements can include any terms agreed upon by the parties, with common terms including rental length, monthly rent, utilities and repairs, default, and subletting. The agreement should identify the parties and property, specify lease length and rent payment details, address utilities and repairs, state permitted property use and subletting, and explain default notification and cure procedures.
A residential lease is commonly used when a property owner wants to rent a house or apartment to someone. As long as the terms comply with any specific law in the rental jurisdiction, residential lease agreements may include any terms agreed to by the parties to the agreement. Drafting residential lease agreements must begin with consideration of terms. Common terms included in residential lease agreements include rental length, monthly rent amount, utilities and repairs, default, and sublet.
The first section of a residential lease agreement is usually devoted to identifying the parties to the lease and the property that is the subject of the lease. The names of the owner and renters must be included. Each person authorized to live in the facility must be listed in this section. The legal address of the property is also indicated in this section.
The basic terms of residential lease agreements generally follow the first section. In this section, the length of the lease should be clear, as well as the start date and expiration date. The amount of the monthly rent and any initial deposit must be included in this section. The day of the month the payment is due, any grace period, and an explanation of late penalties should be found in this next section.
A clear understanding of who is responsible for paying utilities and repairs is essential when entering into residential lease agreements. If the landlord is responsible for paying any of the utilities, or if any of the utilities are included in the rent, then it should be explicitly stated. Repairs, both major and minor, also need to be addressed. Likewise, the agreement should state whether the renter is authorized to make improvements to the property, such as painting.
One section of the agreement should address the permitted purposes for which the property may be used. For example, if the landlord specifically wants to ban any business or commercial use of the property, the agreement should say so. It should also include whether or not the tenant can sublet the property to another tenant.
A clear explanation of what constitutes a default is crucial when drafting residential lease agreements. Non-payment of rent is a common reason for default, but there are often other situations that can constitute default. These situations may include using the property for illegal purposes or abandoning the property. The process of notification in the event of a default and the time period to cure the default, if applicable, should also be included.
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