When renting out a property, problems will certainly arise due to the absence of an ironclad rental contract between you and the renter and things can get upsetting. Issuing a home rental contract will save both you and the tenant from future difficulties and quandaries. A rental contract encompasses terms and policies regarding the responsibilities, rights, and limitations on both sides when damages and abuse come up. The contract also serves as a means to state in detail the consequences to be faced when agreed regulations are not observed. An unexpected turn of events can happen at any moment so you should hold a concrete agreement between you and the renter to prepare yourselves for such unanticipated occurrences. Below are the guidelines on how you can write a fair home rental contract.
- Write on the top left section of the contract your name as the landlord and the renter's name. Underneath should be the complete address of the home property for rent, including the home number, area code, street, city, town, etc.
- State in the first paragraph the basic agreements such as the exact date the tenant will move in to your property; also the terms of lease. This can vary according to what the both of you have arranged. It can be on a monthly basis, a semi-annual basis or a yearly basis.
- Inform the tenant, through the contract, of the monthly charges for his stay and the amount of deposit before he moves in. Spell out details on paying the fee like how the rent is to be paid and the day they should pay. It is important to duly inform the tenant of the due date for paying the rent. Discuss any terms and conditions for overdue payments. For example, there must be an additional fee for every delayed payment.
- Specify conditions regarding damages on the property and who should be responsible for future repairs and maintenance. It is your task to supply the tenant his home needs before moving in. Now once the tenant misuses or abuses any appliance or asset included in the property, he shall be responsible for the cost of repairs and the maintenance. Inform the tenant of your contact information to receive reports on any incident that may arise.
- Notify the tenant of other rules you wish for him to follow, including allowing or disallowing certain pets inside the home premises, as well as his limitations and privileges. A perfect model of a home rental contract is not biased and does not allow criminal and immoral law. It simply states how things should be done accordingly so that both you and the tenant know where to stand. You can also include rules for other activities such as allowing guests to stay in the property, changing locks, issues related to garbage disposals, cleaning maintenance and parking lots. Thrash out details and arrangements for these concerns. Furthermore, you should know that such contracts have the general rule to allow changes for the benefit of both parties.
- The tenant should be well-informed that you will be inspecting the property from time to time. You should inform him prior to your visit.
- End the rental contract with your signatures. It is advised that both you and the tenant must sign together on the date you agree upon. Issue a hard copy for both parties.
Have a clear understanding of the legal contract's content to have a smooth flow of transaction and to establish a good relationship between you and your client.