What should a lease agreement include? A lease or rental agreement should outline the parameters of the property and its use. It should include and be specific about who is responsible for which repairs and what expected of the tenant during the term of the lease.
Gary Knippa, a property management company owner with over 30 years of experience in the real estate field, says that landlords should make sure that they cover all terms and conditions of the renting of the apartment. "You are going to want to have the term of the lease. You are going to want to identify who actually exactly is going to be living on the property. Identify all the adults and all the kids, whether or not there will be pets and how many vehicles are going to be on the property. From the tenant's perspective, if there is deferred maintenance noticed at the property when the lease starts, an identification of what repairs the owner is going to do to the property while the tenant is living there is a good idea. A typical lease that we use is about 11 pages long with all sorts of details of different kinds," he explains.
Obviously the first thing you want to include on the lease is the names of the tenants that will be occupying the unit. This is important because only the persons that are listed as tenants will be held responsible for upholding the terms of the lease agreement. Even if the tenants are not the heads of household or responsible for paying the rent (i.e. children, sick relatives, roommates, etc.) it is important to have their name listed as an occupant on the lease. Make sure all names are spelled and entered on the form correctly as well. You also need to include the length of time that the lease is for (i.e. 6-months, 1 year, or month-to-month) as well as state the exact dates that the lease term will begin and end.
Another important piece of information to include is the amount of rent due each month, along with any other fees that the tenant may incur. You need to indicate on the lease when it is due, what forms of payment are accepted, where the rent should be delivered, and the penalties for late or unpaid rent. If you are receiving a security deposit from the tenant, you need to state the amount you are requesting be held as a deposit, where it will be held, procedures for returning the deposit and under what circumstances will the deposit not be refunded. The lease agreement also needs to include what, if any utilities are included. The fees for late rent and/or returned checks also need to be spelled out in the lease as well.
The policies concerning repairs also need to be put on the lease as well. The agreement should name the person or office that should be contacted to report maintenance or pest issues, as well as indicate who will be held responsible for trash pick-up, lawn care, snow removal, and recycling.
Additional information that needs to be included on a lease agreement include whether or not pets are allowed, parking guidelines and/or restrictions, whether subletting is permitted, the number of occupants that are allowed in a unit, the emergency number for repairs and lockouts and the location of the rental office or landlord's business office.
