You might have just shifted to a new city and would have been on a lookout for an excellent apartment for almost a week. In the quest to find homes for rent, when you come across a good one, you rush with the process of renting and pay less attention to the agreement. There are also times when the tables are turned, and you are the landlord. Many times you might feel embarrassed and shy to present an extremely detailed agreement. Thus, it might lack some crucial pointers that must not be missed. That is why it is important to know of some basic terms before creating an agreement.
There are a few basic terms used in the making of a rental agreement that benefits both the renter and the tenant, making the entire process clear, smooth, and transparent.
Today we shall throw light to some of these terms and conditions.
WHAT IS THE DIFFERENCE BETWEEN RENTAL AND LEASE?
The first and foremost thing is to decide on the kind of agreement we are looking at here.
A rental agreement is the one where the rent is usually paid on a per month basis. The time period may be loosely fixed, but the option to evacuate the apartment early is generally acceptable. On the other hand, a lease is for a fixed period of time, usually a year. The tenant is expected to legally obliged to stay at the property until the lease expires.
This lease is eligible for renewal upon expiration. The important question here is, what if the tenant decides to leave before the expiration of the lease? Is he or she obliged to pay rent for the time they are not staying as it comes under the lease period? If allowed, how many months notice is to be given before the tenant leaves? These are some questions that require some discussion.
THINGS TO CHECK-IN AN AGREEMENT WITH THE TENANT
The basic terms of the agreement are alike for both the landlord and tenant but are looked through with two different perspectives. If you are a tenant looking for a house for rent, here is something to pay close attention to:
- The agreement should be clear and transparent.
- Landlord entry notice should be given at least 15 days in advance.
- Allowance of pets, and if yes, what kinds are acceptable? Are there any pet deposits?
- Utilities that are chargeable should be specified clearly.
- Rent amount and penalty fees in case of late payment.
- All the repairs that you are responsible for should be mentioned separately.
- Restrictions, if any, be it on inviting guests or making changes to the apartment.
THINGS A LANDLORD SHOULD PAY ATTENTION TO
Whether you are a seasoned landlord or a new one, renting out a property is a matter of huge responsibility. In the hustle and bustle of it all, do not forget to come up with a clear and detailed agreement. Here are some guidelines that you can swear by:
- The name and age of all tenants should be noted.
- Limits on occupancy should be specified.
- Terms regarding the rent, including the due date, method of payment, and grace period.
- Security amount, what it will be used for, and if it is deposited, will the tenant get a part of the interest?
- Illegal activity, such as drug dealing or making excessive noises, should be prohibited.
- Smoking sensors should be installed if it’s a no-smoking zone.
- The type of repair and maintenance included, and duration until which they will be done.
It is essential for both parties to check if the terms and conditions mentioned are according to the basic guide or not. Any minor difference may culminate into a huge hassle, even a legal one. However, you can expect a difference in terms and conditions in different geographical areas. For instance, if you are looking for houses for rent in Lafayette LA, it is recognized that homes for rent in lafayette LA are pet-friendly, and basic facilities are provided by the landlord.
But as it might not be the case elsewhere, make sure that the agreement is in compliance with the local and state laws in terms of insurance and security deposit upper limit. Pay attention to these important details to make your rental experience smooth and favorable! After all, a home is a place you confide in, so you do not want to make any blunders, right?