Many people these days would prefer to lease and purchase property than to simply keep leasing the property. As most of them may say that it is cheaper to lease and purchase or the other term for it is to rent to own than to simply keep renting. Of course for some who prefer to lease it since they may not be able to afford or stay longer, this is always the best option. Leasing a residential property for a certain amount of time is as common as many of you may think. Since in this type of business, real estate agents can tell you that purchasing a property through real estate is cheaper than having to keep renting or renting it from outside sources.
It goes without saying, when you plan to either rent or purchase a residential property, you would also need to have to read the fine print from the agreement you are going to be signing. For those who are going to be writing the agreement, must also know that there are some information that they need to know and consider. Placing these information in the lease agreement should be a breeze. Especially if you know what to expect and what to find in the lease agreement.
A residential lease agreement is a document that summarizes the legally binding information between the owner or the landlord and the tenant or the client. This lease agreement simply summarizes the terms and conditions, the responsibilities and the rules and regulations that the landlord has placed in the agreement. Which the tenant has to follow in order to be able to lease the place.
The purpose of a residential lease agreement is to be sure that all parties if there are more than just one client or tenant, have agreed to all their duties, responsibilities and the terms of the contract. This also includes the rules that the landlord may have for the tenants to follow. Since this is a residential agreement, the information that is included caters mostly to either the residential property, residential purchase of the building or the land. It also basically caters to the necessary paperwork that the tenant may have to pass or to prove to the landlord that they are serious with leasing the place. Either for business related or personal related.
There are key elements that are necessary when writing a residential lease agreement. These key elements help by completing the necessary details. Here are some of these common key elements below.
As any kind of agreement will tell you, there are those blank spaces that you need to fill out. This is where you are going to be writing the tenant’s complete details. These details include their full names, the address which is the place they are renting, their contact information in case of any issues and of course their email which is optional. The most important detail you should always check out is their full names and contact information.
Your terms would be as follows: the payment for rent, the amount to pay for the rent and the dates that are necessary to pay the rent. Of course any other rules or conditions you may want to talk to your tenant about should also be placed in the agreement. If your tenant prefers to read through the full terms and conditions, write all of them down.
How long are you planning on renting the residential building or house? State it in your agreement. This should also be given to the tenant and if possible, ask them how long they are planning as well. That way, both of you may have a certain estimated time length of the rental agreement. As some do prefer to renew their agreements before the current one expires, while others prefer to do it on the day it expires.
State all the details of your agreement and we mean everything. This includes the consequences in case there are any late charges of paying the rent. This should be included to let your tenant know that if they prefer to pay late, consequences should also happen. The consequences can depend on the severity or the length of the days they paid late.
Copies for each of your tenants on the agreement is necessary. This is not only to let them be reminded of the rules, the terms and conditions that they agreed on, but it is also to let them know that you mean business. This is not used to scare your tenants, but a gentle reminder that you are running a business, and for a business to run smoothly, all parties have to be on the same level of thinking as the rest. So copies of the agreements should be given to the representative of the group or of individual tenants.
A residential lease agreement is a kind of agreement contract between two or more parties. They agree on renting the resident for either personal use or business use.
The copies of the agreement serves as a reminder for them. That what they have agreed on has all been discussed and stated during the agreement.
The best time to write an agreement is before you have any tenants. Even a ready made copy is fine since all you have to do is to fill out the information of the tenant.
Making a business out of renting or leasing your residential properties, houses or lots is a business that may have some risks to it. But of course, there is no business without any possible of risks. The only way you are able to make the business run as smoothly as possible with your clients is by making an agreement. This way, not only are you and your tenants in common ground, you are also able to explain in detail about how you want your agreement to be and how you want your tenants to know that, this is how you want things to go.