“Important Terms In An Apartment Lease Form” written by Mike Marko
Want to know what terms to include in an apartment lease form?
A lease form is a detailed legal document. It’s your duty as a property manager to use it to clear up every detail of your agreement with your tenant.
That means there are some terms that should appear in an apartment lease form by default. They cover important aspects of the leasing contract for both you and your renter.
Their absence from an apartment lease form can lead to misunderstandings. In some cases, it can even lead to legal problems!
In today’s article, I’ll talk about some of the important terms to include in your apartment lease form to avoid issues like that.
Terms to Include in an Apartment Lease Form
Creating an apartment lease form is the most crucial part of an apartment renting process. That’s because it’s a binding document that outlines the terms of your agreement with the person renting your apartment.
Without an apartment lease form, you and your tenant won’t know what to expect from each other. That’s why you need to take your time when making one. It’ll save you a lot of problems later!
A good apartment lease form doesn’t leave much up to chance. It explains all terms and conditions as clearly as possible.
This document serves as a contract between you and your tenant. Both of you are obliged to sign it after reading the terms set for the leasing process.
Here are some of the important terms and information your apartment lease form must cover.
Names of Tenants
The first thing to include in your apartment lease form is the name of the tenant who will occupy the property. If you have more than one tenant for it, name them all.
Every person who lives in the unit should be named as a tenant. Each tenant must sign the lease agreement. This makes them legally responsible for all terms set on the apartment lease form.
The tenants listed in the form are responsible for paying the full amount of rent that you set for your property. This means that if one of them defaults, the rest still need to cover the full amount.
For example, let’s say your rent is $300 for an apartment. You have three tenants in that apartment. Each one pays $100 for his share.
If one of the tenants fails to pay his $100 one month, the other two have to cover it along with their shares. That’s because they all signed the apartment lease form where you and they agreed to a monthly full rent amount of $300.
As you can see, having all tenants’ names and signatures on the apartment lease form is a good idea. It protects you from a lot of risks that you have to take when renting out a place.
Here’s another example: if one tenant violates one rule of your apartment lease form, you can terminate the lease for all of the tenants named in the form.
Terms of Tenancy
The next thing that your apartment lease form should cover would be the terms of the tenancy.
A lease form should state whether it’s a rental agreement or a fixed-term lease. A rental agreement usually runs from month-to-month. On the other hand, a fixed-term lease typically lasts for a year.
Stating the term of the lease helps clarify things for both you and your tenant. You don’t want any confusion over how long a tenant is allowed to stay in an apartment.
Security Deposit and Fees
In your apartment lease form, mention the exact security deposit and fees relating to the leasing process.
Security deposits shouldn’t be used as rent unless both parties agree to it. Your agreement should be clear on the limit, use, and return of this deposit after the leasing term ends.
For this term, tenants shall pay the rent in full amount on the first day of each month. All the money given to you should be recorded. It’s always a good idea to include details on where the security deposit is being held.
Your apartment lease form should also cover the type of occupancy. State in the agreement whether or not your apartment/unit is strictly for residential purposes only.
With this, tenants will be guided by the appropriate steps that relate to residential purposes of leasing.
Other Important Terms
There are also other important terms aside from all the ones that we’ve already mentioned. Other terms include property managers entry, maintenance, pets, and the like.
Property Manager’s Entry
This term talks about your right as the property manager to enter the unit for repair and inspection purposes. As a property manager, you may enter the unit with reasonable notice and at reasonable times. Be sure to state this in the apartment lease form.
It’s the tenant’s responsibility to maintain the unit in neat and good condition. This includes restrictions on tenants’ repairs and alterations such as adding a built-in dishwasher and painting on walls without permission.
Make sure that your apartment lease form clearly states your position on having pets on your property. Be detailed on whether pets are allowed or not on your property.
You may want to add to the form that you reserve the right to revoke consent if pets become a nuisance. Think of cases where a tenant’s dog turns out to be noisy enough to bother other people in the area, for example.
Final Thoughts on Important Terms in an Apartment Lease Form
In this article, I talked about the important terms that your apartment lease form should cover. To achieve a successful leasing, you need to include all the terms I mentioned in this article.
As a recap, here are some of the most important terms you need to include in your apartment lease form.
- Names of the tenants,
- Terms of tenancy,
- Security deposit and fees,
- Property managers entry,
- Maintenance clause, and
- Pet clause.
All these terms are vital in making your own apartment lease form. Remember, creating a perfect lease form will always give the best out of your property leasing business.
If you find this article informative or have further questions, feel free to leave a comment below.
If you need help marketing your business online then check out IM Consultant Services.
Disclaimer: This commentary is a matter of opinion provided for general information purposes only and is not intended to be taken as investment or trading advice under any circumstances. Information and analysis above are derived from sources and utilizing methods believed to be reliable, but we cannot accept responsibility for any losses any person may incur as a result of this analysis. Individuals should consult with their personal financial advisers. By using this web site or any information contained in it, the user specifically and expressly agrees that no advisor-client relationship is created between said user and any author, owner, executive, or principal of this web site by either use of this web site, or by any information, product, or service offered by or on this web site. No express or implied guarantees or warranties as to investment or trading results are made, and any perceived insinuations of such are hereby expressly disclaimed.