Important Clauses in Residential Lease Agreement

Residential Lease Agreement

A residential lease agreement could be a ten-page long document or it could be as short as a single page, it could be handwritten or typed, and it could be full of legal jargons or it could be easy enough to understand. However, there are certain important, significant and no-can-do-without clauses that they should contain for the safety and security of both the landlord and the tenant. Unfortunately, most clauses are wound up in fancy legalese or gargantuan sentences. Summarized below are certain aspects and issues that residential lease agreements must contain –

• Rent and included items – Leases agreements should stipulate and lay down the amount of rent that is due every month, where and when it’s due, what the adequate forms of payment are, and any late fees and/or penalties that are chargeable in case of late payments. The agreement should also clearly state as to what constitute minor and major repairs for the house and who bears the cost of maintenance and routine repairs. It should also state who should pay for the maintenance charges for the society as well as the municipal dues. Additionally, it should also contain as to who exactly has access to the common areas.

• Details of landlords, tenants and rental property – A residential lease agreement, between whoever it might be, should specifically state the names and addresses of the tenants and landlord. In case a company or property managers are authorized to receive all legal documents on the landlord’s behalf, then their details should also be included. Additionally, the details of the rental property (premises) including storage areas, parking spaces, furnishings and all other extras that come along with the rental property should be mentioned.

• Security deposit – The security deposit in a lease agreement the amount expected to be paid immediately by the tenant after he/she signs the lease agreement. This amount, as well as the terms and conditions of when it will be released to the tenant, should be specified in the lease agreement. In most cases, the amount is one month’s rent, and the amount is in addition to and separate from the rent that the tenant will be paying. Any breach in the agreement could lead to the tenant forfeiting his deposit.

• Tenancy duration – Residential lease agreements should include the starting date and the ending date of the tenancy. It should also contain renewal terms and conditions.

• Subletting – With landlords becoming picky-choosy about the kind of tenants today, the agreement usually also forbids the tenants to let out/sublet any property portion to anyone else.

• Termination of lease and intention to vacate – This is one area where the wording in a residential lease agreement gets legal. It should include when and how a renter/tenant can terminate the lease (usually by giving a notice of intention to vacate) and under what conditions a landlord can end the lease (this usually includes violation of lease agreement). It should also include under what conditions the tenant can rightfully get back his security deposit.

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by Balaji R via Visakhapatnam, Vizag | Apartments, Flats, Homes, Houses, Plots, Property, Properties, Real Estate, Villas | for Sale | Shriram Panorama Hills