A lease agreement defines the laws and rules the owners and renters are to follow. This formal agreement is fully binding; it includes important information like the tenancy’s length and the monthly rental rate.

Identifies Names of all the Tenants

A lease or tenancy arrangement should be signed by all the adults living in the leased unit. The specified occupants are fully liable to pay the entire rental price per all rental terms and conditions. Should a tenant leave and not pay the rent, you can legally pursue the whole rent from any one of the named occupants.

A Property Description

This description should include the full address of the property and, where appropriate, the building and unit number. If there are any storage or parking spaces included, they too must be noted.

Rental Period

Residential rental agreements are generally a short-term tenancy that goes month-to-month and automatically renews until the landlord or resident decides on its end. Leases, however, typically run a year (or longer for commercial properties) and end after a specified term. What should be noted is the start and end date of the lease.

Occupancy limits

It should state plainly in the agreement that only the occupants who signed the lease along with their dependents may live in the rental property. The purpose of this provision is that it allows you to evict any occupant who allows a friend or family member to reside in the unit without written consent.

Sum and Frequency of Rent

Your residential lease must include the cost (how much the occupant has to pay). Payments are generally monthly, but there are arrangements where the landlord will allow the occupant to pay at differing intervals. Many variables can cause the rental frequency to have a different setup. In any event, this must be clearly defined in the leasing agreement.

Ensuring everything is covered in a rental agreement can be a daunting part of owning a rental property. Nonetheless, putting these protocols in place can save you a lot of time and headache down the road.