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Rental Agreement plays an important role in protecting the rights of an owner in a property. Often the times over disagreements and disputes over the property between the two parties and damage caused due to carelessness, negligence, or deliberate or accidental harm by the tenant.

It is always better to form a written agreement instead of an oral agreement. In the future run, if there arises any dispute, it could reach a favorable outcome. The rental agreement, however, includes the basic rental agreement. You do not need to be worry! even it is your first time, we will provide you a guideline of what terms not to miss out in the rental agreement.

Rental Agreement

A rental agreement is an important legal document that acts as a binding contract between the landlord and the tenant, before renting a property to the tenant.

These are for short-term rental periods usually based on monthly contracts,  however, it can be altered or modified by either of the party at the end of the month. The landlord has an option to renew the contract or raise the rent or require the tenant to vacate the property. The landlord is required to give 30 days notice requesting the tenant to quit the property. The lease agreement is for a longer period of six months or a year.

Essential Terms In The Rental Agreement

A rental agreement is a pathway that helps the landlord form a better relationship with the tenants. A month-to-month rental agreement protects both of the parties especially the landlord, enabling him to include certain obligations which ought and ought not to do on rental premises.

It is often convenient to have an attorney draft it for you. Several provisions can b included in an agreement but the following are a few basic clauses that the landlord should never omit  while drafting:

  1. Parties to the agreement and rental description

Mention the name of the tenant or tenants living in including their contact information. Make sure to include your name, contact information, and address of the property as well. State the proper address of the property and description of the rental property as to how many bedrooms, TV launch, kitchen, whether furnished or not, what area does he is allowed to enter and refrain. Usually, the landlord with the bigger space is given several properties on rent specifically to maintain privacy. if it does not have any proper address, then just mention the bedroom on the second floor. Be concrete and precise.

Some landlords have set the limit to the guests' number or as per the contract only the tenant and the dependents can reside in the property.

  1. Duration and Expiration of tenancy

Rental properties create a relationship between the landlord and the tenant which is regulated by the tenancy law of each province. The duration of the tenancy is also specified in tenancy laws. As the rental agreements are short-term month-to-month or six-month rentals, agreements are renewed automatically yearly or quarterly until either party wants to terminate.

The starting period, duration, and expiration clause should be clear and precise to avoid any confusion in the future. Furthermore, the service of notice upon termination shall also be mentioned.

  • Rental Charges and security deposit

State how much rent does the tenant has to pay, mention it in numbers as well as in words to prevent yourself from any cheating and confusion in the future.

Also, enlist the number of security and how much security deposit will be collected, the landlord can also indicate whether they will charge late fees, including the grace period and charges

  1. What includes with the rental

Indicate if you will provide any utilities, such as gas, electricity, and cable. On the other hand, declare responsibility of the tenant for utilities. Be specific and clear about what is included and what is not included in the rent. If you are providing the home appliances, also enlist the names, such as furniture (sofa, bed), refrigerature, cooking utensils (include each and every utlencils), stove.

  1. Mode of payment

After the rental charges are mutually agreed between both parties, it is also pertinent to mention the mode in which the payment is made whether in the form of cash, cheque, money transfer, or bank deposit.

  1. Pets

Please indicate whethr the pets are allowed, if yes, what type of pets are allowed and the number of pets, and any extra charges that apply. To the limit of pets, make it clear that tenants cannot bring any other type of pets.  You can also have a pet ban policy in the rental agreement.

  • Each occupant's name and number

If no additional occupants are allowed by the landlord, specifically indicate in the agreement that only the tenant is allowed to occupy the property. Enlist all the names of the occupants if there is more than one occupant.

Also mention in the agreement that the tenant is not allowed to sublet or sublease the rental premises.

  • Maintenance, repairs, and inspection

Generally, the additional expenses such as maintenance and repairs are borne by the landlord. However, it entirely depends upon the nature of the agreement. Any damage caused to the property by deliberate neglect will be borne by the tenant. It is best to specifically mention the accountability by parties in the agreement to avoid dispute.

  1. General rules of property

The landlord has the liberty to set limitations, terms, and policy over the use of the property, such as no illegal activities, no loud music, no smoking premises, and no noise after a particular hour. If he fails to abide by these terms leads to termination.

  1. Damaged property

The tenant is responsible for all the damages except for the ordinary wear and tear. The tenant is obliged to return the premises in ‘clean-broom’ condition. If the tenant is unable to abide by the condition he would have to face legal consequences.

  1. Contact info and profile

Trust is fundamental to building a trustworthy relationship for the parties to the agreement. Where the occupant is a responsible tenant on the other hand the landlord act as a good landlord. Both of the parties should not refrain from asking questions or information from each other, such as personal documents, a copy of national identity card, phone number, office, or business address.

  • Signature

Name of the landlord and tenant with signatures, and the date of the agreement at the bottom.

Rental Deed  Secures both the Tenant and the Landlord

The rental deed is the principle document. The landlord is shown reasonable care, by including a clause where the tenant is responsible solely for any damage caused deliberately or coincidentally.

The landlords serve the exclusive rights to charge for any damage caused and after examining, the tenant must be notified of the deposit of security or advance rent usually for three months.

Before sending tenant invoice of repairs, the calculated cost of repairs is as per the current market expenses for repair. Be fair enough that you have rightfully charged the tenant for the damages.

Differentiate Between Ordinary Wear And Tear Vs. Deliberate

To charge the lenders for damages, first, you have you differentiate it from the ordinary collapse, inspect each and everything through the move-in conditions, electric, gas, and water utilities all the cabinets and mirrors are intact in good and fine condition. Water tanks, doors cabinet everything is in working condition. All the walls are painted and bear no cracks, sketches, and marks.

Registration of Deed

It is advised to get your rental deed registered from the respective controller office or the respective district courts. Subsequently, from the respective local officer stating how many people live there, their official office address includes the respective number plate of the vehicle.



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