Download these 40+ Rental Agreement Sample Templates to help you in preparing your own Rental Agreement quickly and without missing anything important.
‘Agreement’, also known as ‘Rental Lease Agreement’, is an agreement in which both the parties have the responsibilities within the agreement and are legally bound to follow and enforce the conditions mentioned in it. There are four basic components of the agreement: The offer, the acceptance, consideration and acceptance. Once these requirements are fulfilled, a contract or agreement is deemed to be enforceable.
Rental Agreement Types:
There are two basic types of rental agreement:
- Lease and License Agreement
‘Lease Agreement’ is when we pay a fixed amount of money to a landlord on a yearly basis and in return he/ she will lend you the property as if it is yours. It is more popular in commercial rental properties. Normally, in 99% cases second type i-e; ‘Lease and License Agreement’ is used. So, it is the most popular type of rental agreement that we come across.
Clauses to Consider In a Rental Agreement:
- Finding out who the ‘Actual Owner’ is the first and the foremost step towards signing a rental agreement. One must check documents to ensure the authenticity of the real owner. Make sure you sign the agreement with the real owner.
- The ‘Term of Agreement or the Duration of agreement’ holds the second most important thing to consider. It can be in years or months. The desirable duration must be kept in mind because this will decide upon rest of the clauses like raise in rent etc. So, you must check the term of agreement before signing the agreement.
- Third one is the ‘Termination Clause and Notice Period’. This clause is made use of when the owner, for some reason, wants to terminate the agreement. In that case you will have to invoke the termination clause and ask for the notice period. A notice period is may be from 2 weeks to a few days. This is given to you to find out an alternative for yourself.
- Next is the ‘Lock in Clause’. This clause is for the owner to safe him any lose in case you decide to terminate the agreement before the completion of duration mentioned in the agreement. So, in such case even if you want to terminate the agreement before the completion of duration, you will have to pay for the full duration you have signed for in the agreement.
- The ‘Payment Clause’, however, is the clause that decide the mode and the date of payment. Also, it decides if the payment will be quarterly or monthly or yearly. These will be the deciding factors in the payment clause. So, this clause must be check consciously while signing the agreement and you have to keep in mind the date on which you have to pay the rent to your owner.
- ‘Increase in Rent Clause’ is another important clause of rental agreements. This clause decides that how much increase in the rent will be after a specific duration of time. You must check the figures given in the agreement.
- A guarantor name must me mentioned under the ‘Guarantor Clause’ in case someone else is paying the rent in place of you. This is done to make sure that he/ she will pay the rent for you.
- ‘Maintenance/ Association Charge Clause’ tells that who will bear the maintenance charges of the things given for rent. Either it will be included in the rent or not. Whether there will be some extra charges other than the rent. You should check out for these conditions.
- For a short duration, the ‘Wear and Tear Clause’ can be overlooked. But for a long duration the owner may ask you for the wear and tear charges so you should mention in the agreement that how much you are willing to pay against these wear and tear charges.
- The ‘Furniture and Fixtures Clause’ is of importance especially in cases when you are signing a house rental agreement. You must take a good look on the furniture and the fixtures that if they are in good condition or not. If not then the owner must repair them and bring them into workable condition and they should be mentioned in the agreement.
- Next is the ‘Clause for Facilities and Amenities’. To access the facilities of the rented place, such as gym or pool etc, you must see if it will be included in the rent or not.\
- The ‘Security Deposit Clause’ is the most important clause. Security deposit is decide before hand and it must be returned to you after the completion of the duration of the agreement. The owner may deduct some security deposit in case of some abnormal wear and tear.
- ‘Repair Work during Occupancy’ is the clause used when there is small repair that do not require much financial and manual labor then you have to do it by yourself. However, if something require huge financial help then the owner should bear it.
- Next comes the ‘Dispute Resolution Clause’ is used when the owner come into some type of dispute. This clause must be read very carefully as it will decide that will be the outcome of the dispute for you.
While preparing the agreement, the owner must consciously think about the policies of the agreement:
- Make sure that your policies are correctly mentioned in the rental agreement. You must maintain consistency throughout.
- While drafting the agreement, you must also keep in mind to not put yourself at risk for liabilities.
- Be reasonable, rational and not lawfully discriminatory while shaping your agreement. The words must be carefully chosen so that misunderstanding does not arise.
- Take care that you do not make fraudulent misrepresentation of your property or services.
Keeping in mind the above discussion, it is deduced that a properly written rental agreement is very important. If you have a strong and properly managed rental agreement then you will have a written guide that what to do when a violation occurs. It will solve all your challenges if something unexpected happens.
Given below are the sample templates for rental agreement that will surely be helpful for you make a good one for yourself.