How To Create a Rental Agreement

A rental agreement is a legal document that creates a short-term agreement between an owner and a renter.A rental agreement is usually created for a rental property.Because of the wide variety of local and state laws relating to rental agreements, it is advisable to have your rental agreement verified by a real estate lawyer.You have the right to create a rental agreement on your own or in consultation with an attorney.

Step 1: There is no such thing as a standard rental agreement form in the USA.

The simplest rental agreement can be a verbal agreement about the amount and due date of the rent to be paid in a month-to-month tenancy, with no formal contract between the renter and the landlord required.Because landlord-tenant law is based on the feudal system of common law, each city, county, and state can have additional laws regarding rental agreements.The "general-law" for small unincorporated townships and county areas is related to tenant and landlord relationships.The informal rental process can be done under the jurisdiction of municipal court, justice of the peace court and constables, and county district courts and sheriff.Nine states -- Alaska, Arizona, Kansas, Kentucky, Nebraska, New Mexico, Oregon, Virginia and Washington -- have enacted standardized residential landlord and tenant laws by following the recommendations of the Uniform Law Commission.

Step 2: You can request a copy of the local housing laws.

Call your county courthouse to find out where you can pick up the handbook.You can call your state housing office.The state housing authority puts together a book on the laws.They may include things like Lead Paint Acts, Mobile Home Acts and Security Deposit Acts.Make sure the copy you print or request is the most recent version.

Step 3: Health and safety laws need to be reviewed.

Before writing a rental agreement, it is important to know the state and city regulations regarding fire suppression systems, lead paint, and carbon monoxide.Liability for injuries sustained on the property and other issues are some of the issues.Tenants in California have the right to refuse rent if the property fails to meet health and safety laws.

Step 4: Do you know if there are rent control laws in your area?

Call the local housing authorities to inquire about the regulations.New York City, Washington D.C., and San Francisco have rent control laws.

Step 5: There are laws regarding security deposits.

It is illegal in some areas to have a security deposit greater than 1 or 2 months of rent.When the landlord may deduct funds from the security deposit to make repairs is one of the things that can be included in the regulations.

Step 6: You can search for templates online.

Some states have online rental agreements.You can find your state and rental agreement on several search engines.Some states provide rental agreement templates while others don't.The state of Georgia has a sample rental agreement on its Department of Community Affairs website, while Massachusetts has one on their Housing Consumer Education Center website.Do-it-yourself online law sites can help you create a rental agreement.You may have to pay for access to documents created by lawyers in your state.

Step 7: Information about the property should be included.

Tell us about the property that will be rented, the address and the name of the owner.If there is a property manager who is different from the landlord, insert that information.You can leave blank lines where the information can be added to make the document more flexible, but you have to include information about the renter.

Step 8: Tell us about the terms of the rental agreement.

In order to end the agreement, the landlord must receive a certain number of days of notice.Rental agreements are usually month-to-month.You can use a lease for a longer rental period.If your rental agreement states that notice must be given in writing by either party at least 10 days before the end of the month, you can end the agreement.

Step 9: If the lease is broken, there will be consequences.

Make sure the agreement complies with local and state laws.If the tenant fails to pay rent, give proper notice or fill out the full term of the agreement, the security deposit may be forfeited.

Step 10: Payment, security deposit, and fee policy should be specified.

Tell us how you will accept payment and where it should be sent or delivered.The tenant agrees to rent the premises on a monthly basis at a rental rate of $500 per month, which will be payable by the 3rd day of each month by mail to Apartment Manager, P.O.Box 1001, anywhere in the United States.There is a grace period for paying rent in most states.Define the late fees after the grace period is over.The agreement could state that a fee of $50 will be assessed every day if the rent is not received by the due date.

Step 11: A repair and maintenance policy is needed.

Tell the tenant what needs to be done in order to get the improvements they want.Refer to local and state laws to find out how quickly repairs must be made.The agreement might state that the landlord agrees to maintain and repair the exterior, but the tenant must maintain the inside of the property.

Step 12: Determine and specify optional policies.

Policies concerning pets, utilities, number of occupants, smoking, sublet, parking, and common area rules may be included.There are a lot of policies that can be added to a rental agreement.The agreement could say that the tenant can't change or add locks without the landlord's consent, and that locks can be removed without notice.It is up to the landlord to decide if they will allow pets or not.There may be laws governing the practice of allowing pets and charging a deposit or rent.Who will pay for utilities should be specified.Satellite dishes may be mounted.

Step 13: You should consult a real estate lawyer.

It is a good idea to have your rental agreement reviewed by a local lawyer before you use it.

Step 14: Take the time to read your rental agreement.

Make sure the document is accurate and complete before you submit it for review.Make sure that there are places for you and the renter to sign the agreement.To sign, leave spaces for more than one tenant.

Step 15: Consider a hybrid solution.

Hire a lawyer to add the most problematic sections of the rental agreement, such as how disputes will be resolved, if you feel comfortable doing it on your own.If you want to save time, ask a lawyer to draw up your agreement.It will be cheaper to have a lawyer review and suggest changes to an existing document.

Related Posts:

  1. How To Understand Your Apartment Lease
  2. How To Write a Residential Lease
  3. How To Evaluate a Landlord
  4. There is an account for Tenant Improvements.