When you are an owner of a rental property, there are certain “clauses” you should add to your tenancy agreement for new tenants. A tenancy agreement is simply a legally binding document that describes what the tenant is and is not allowed to do with the property. Most commonly, it contains stipulations about rent, damage to the property, and how the property is to be kept clean and tidy.
A tenancy agreement will make it much easier for them to understand their legal obligations as a tenant and also make it much easier for you to enforce those obligations. Here are 5 examples of clauses you absolutely must include in every rental agreement you offer whether you are a landlord or a property manager.
Amount of Rent, Security Deposit, Other Payments
This is a clause in the tenancy agreement which requires the tenant to pay the amount of rent and to provide the landlord with a security deposit that is equal to at least five weeks’ worth of rent. This clause is important because it gives the landlord the right to terminate the lease if the rent is not paid or if the security deposit is not provided within a reasonable time period.
Duration of Agreement and Renewal Criteria
Your rental agreement should be very clear about how long the tenancy will last. Make sure the renter understands he must give you at least 30 days written notice if he wants to terminate his agreement. You should state clearly in your agreement that after a specified number of days, the agreement will renew itself for another period of time. This is especially true for month-to-month tenancies. Make sure your agreement specifies what will happen if either party wants to terminate the agreement.
Restrictions
This is a very common clause in tenancy agreements, and it basically restricts what the tenant can do to the property while he or she is living there. It is usually used to prevent the tenant from making excessive structural changes to the property, such as adding an addition to the house, building a pool, or putting up billboards on the property, or even bringing pets into your rental property. Restraints can also be put in place to prevent damage from being caused to the property by the tenant.
Repairs and Maintenance Requirements
This clause stipulates what the landlord must do for repairs and maintenance of the property. This can be as simple as changing a light bulb or as major as replacing the roof. Usually, this section is not very long and simply states that the tenant is responsible for and what the landlord is responsible for.
Occupancy Limits
One of the biggest concerns of property owners is having too many people living in their buildings. If there are too many people, the building becomes more likely to fall into disrepair. This is a real problem for landlords and sometimes can lead to disastrous consequences.
Adding this clause to your lease specifying the number of occupants who can live in your property will give you additional peace of mind. This will help you avoid any problems with nuisance complaints or other types of legal action.
Conclusion
The clauses listed above are very important if you want to protect yourself against any claims from the new tenants. So, if you are a landlord, it is important to make sure all your tenants are clear about the obligations they have under the terms of their lease.
