“Quick Guide In Making A Basic Lease Agreement” written by Mike Marko
Looking for a guide in making a basic lease agreement?
Property managers sometimes provide a basic lease agreement when there’s an unexpected tenancy. Since the preparation time for the upcoming tenancy is short, property managers have no choice but to make quick decisions and documents.
But even if you’re only providing a basic lease agreement, it should still contain important information.
A long time ago, I made a quick lease agreement for an unexpected tenant. Since it was just a basic lease agreement, I only chose to write the terms that I thought necessary.
However, it turned out that what I included in that basic lease agreement wasn’t enough. A lot of problems arose during the tenant’s stay in my rental property.
Since then, I’ve studied how to create the best basic lease agreement for unexpected tenants. Today, I’m now able to provide the best basic lease agreement documents for people renting my properties.
If you need help making one of these yourself, I can help you. In this blog post, I’ll talk about a quick guide in making a basic lease agreement.
What to Know about a Basic Lease Agreement
It’s your responsibility as a property manager to provide a basic lease agreement to your tenant. That’s why you need to know how to make the best agreement on short notice.
But before we go into that part, let’s take a look at the definition of a lease agreement first.
What Is a Lease Agreement?
A lease agreement is a contract between you and your tenant for using a property. This document contains all the necessary information about both parties and the property.
Before the tenancy begins, you and your tenant must sign a lease agreement. Once signed, the agreement will prove that both parties have agreed on a certain set of conditions.
With that said, you must create a physical lease agreement and give a copy of it to your tenant. If either party refuses to have a written lease agreement, both are still responsible for keeping their side of the conditions agreed upon.
However, you need to be careful in dealing with tenants who refuse to have a written lease agreement.
A verbal agreement can lead to several problems once a misunderstanding between you and your tenant occurs. That’s why it’s advisable to provide even just a basic lease agreement.
Things to Include in Your Basic Lease Agreement
Even a basic lease agreement has important details about the tenancy. It contains the following information:
- The full names and contact addresses of you and your tenant (including contact email address and mobile telephone number, if they have them).
- The address of the property that’s being rented.
- The date the tenancy agreement is signed.
- The date the tenancy is to begin.
- Addresses for service for both the landlord and the tenant.
- The rent amount and frequency of payments.
- The place or bank account number where the rent is to be paid.
- Any fees (for a letting agent) to be paid (if applicable).
- A list of furnishings (like chairs, curtains, and other fittings) provided by you.
If the tenancy is a fixed-term agreement, include the termination date. This is the date when the tenant’s rental period for the property ends.
That’s not the end of your job when making a basic lease agreement, though. There are other things you may have to put in it, as you can see below.
Important Policies and Clauses
Aside from the information about you, the tenant, and the rented property, you should also include your conditions for using the property. Doing this prevents you and your tenant misunderstanding each other.
Here are some common clauses that are included in a lease agreement.
- Details for security deposits,
- Pet policy, and
Reminders for Property Managers
Once you’re done with the above, the next thing to do is to check spelling and grammar.
A basic lease agreement with poor grammar and misspelled words can be a cause for misunderstanding. Aside from that, having a mistake or error in the lease agreement makes you look unprofessional.
That’s not something you want. It could even drive away potential tenants from your property… right before they sign the contract!
Also, keep in mind that you can’t add just any condition you want to add the document. All extra conditions added to a lease agreement must comply with the law. If not, they’ll be considered invalid. In some cases, they may even make the rest of the document invalid too!
With that said, it’s best if you study the rental laws before making the basic lease agreement. Doing this can help you avoid violating any of the laws in your area.
Finalizing the Lease Agreement
You also need to see a rental lawyer before finalizing the lease agreement. The lawyer can improve the agreement so that it’s both legal and ready for use with your tenant.
With that said, allow the lawyer to make the necessary changes. The lease agreement must be free from errors because it’ll be a legal document once it’s signed by both parties.
Another reason for consulting a lawyer is to make sure the agreement will be able to protect you if problems do come up with the tenant in the future. If the agreement was made right, it can help you if the problem is bad enough to require a day in court.
Final Thoughts on Making a Basic Lease Agreement
In this blog post, we talked about a quick guide in making a basic lease agreement. A lease agreement is a contract between you and the tenant. This document contains information about both parties and the rented property.
A tenant can still lease a property without a written agreement. However, a verbal agreement could lead to several problems in the future. That’s why it’s advisable to provide even a basic lease agreement to your new tenant.
A basic lease agreement contains all the necessary information about the tenancy. Also, it has the terms and clauses for renting the property.
When you’re making a lease agreement, make sure to the rental laws in your area. Also, consult a rental lawyer before finalizing your lease agreement.
If you have more questions about a basic lease agreement, leave them in the comments below.
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