The Rental Contract

The Rental Contract

Author: Oliver Weeksl

When renting out property, it is very important to write a good and solid home rental contract. The rental contract will cover the responsibilities of the tenant, the property owner, and dictate remedies when those responsibilities are ignored. Without a home rental contract, both parties are left vulnerable to abuse. Include an agreed upon move-in date and the term of the lease. The term of the lease can be month-to-month with 30 days written notice of termination. The term can also be 3 months, 6 months, or a year.

Spell out the existing condition of the property, usually in the form of an attached inspection sheet. Discuss how repairs and damages are to be handled. The tenant should be given and emergency contact number and be instructed about what kind of repairs qualify as an emergency. Rent payment amounts, when the rent is due, and penalties for late rent payment are also written in the home rental contract. Should the tenant pay late, there should be a monetary fee for each additional day the tenant pays the rent late.

Stocks and bonds aren´t the only money-making investment in town. Consider rental property if you´re prepared for extensive research, a fair amount of financial commitment and, depending on how you set things up, a significant role in maintaining the property. Assess your financial requirements and goals. Do you need a steady stream of income from your rental or do you plan on selling it for a profit in a couple of years? If it´s the latter, look for lower priced property that you can fix up as you rent it out.

Breaking a lease agreement for a residential property can be risky for both sides. The tenant in particular is liable for the rest of the money owed on the lease, unless being able to come to an alternative agreement with the landlord. The landlord also may have trouble unilaterally breaking a lease depending on the laws of the state in which the property is located.