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Any rental agreement or contract defines the rules and regulations for tenants and owners. Thus, it is a crucial legal contract compared to any ordinary document. Thus, it comprises all important details that help maintain harmony for both sides for the whole period. So, are you going to rent your property or looking for a new one as a tenant? Then, you must not ignore the rental agreement.

Moreover, to make a rental contract, you must be very careful. It means you have to do proper research and make sure it serves equal responsibilities for both. So, if any error occurs later, you cannot change it. As a result, you can be in a big problem.

Hence, to avoid that, there are important terms that you need to highlight. In this article, you will know about the 5 terms you should include in any rental agreement. Read further to know more.

Tenants Name

Firstly, any married couple or tenants living together should have their name in the agreement. Hence, any adult living in the property is considered a tenant. Also, they need to sign the agreement and be liable to follow all the important terms. Furthermore, the owner can also seek whole rent from one tenant if others cannot pay. Along with that, as an owner, you can terminate the lease of every tenant if anyone violates the contract.

Occupancy Limit on the Property

Secondly, any rental agreement should specify who can live in the property. So, if you are a tenant and signed the contract, your minor children can live with you. Also, it is totally upon the owner who decides who can stay or not. The property owner can also evict any tenant if they live with any relative or friend. Hence, the tenants can seek permission from owners to let anyone stay with them.

Contract Period and Extension

Thirdly, another significant term in a rental agreement is duration. Along with that, it should also mention the extension. So, whenever you are making any agreement for rent, check it properly. The duration in the agreement is the period for which you can legally stay on any property. After the duration is expired, it is upon the landlord if they can renew it. Otherwise, the tenant has to find another place.

Rent Amount and Payment Dates

Additionally, your rental agreement should also have information about the rent amount. It must mention the process of payment like cheque, cash, or mail. For that, the agreement should specify the acceptable methods for payments by the specific date. Moreover, the fees for late payment of the rent should also be there. Also, additional charges if the cheque of the rent bounces. So, make sure that you are giving accurate detail about rent in the document.

Fees and Deposits

Furthermore, one of the complicated terms is the fees and deposit in the contract. It can be problematic later if not solved beforehand. So, if you want to keep all the legal actions at bay, make sure that the agreement covers the following.

  • Exact amount for security deposit
  • How the owner will use the deposit amount. Also, if it applies to the rent of last month.
  • Fees that are non-refundable, such as pets, cleaning, etc., should also be included in the agreement.

Hence, every condition regarding penalties and money should be present in the agreement. 

Other Terms That You Need to Add in Your Rental Agreement

Apart from the 5 different terms, there are some other terms that you need to take care of. So, have a look at them as well.

Maintenance and Repairing of the Property

Yes, the agreement should also highlight who is liable for the maintenance and repairing of premises. Also, it should highlight that tenants should keep the area neat and clean. Also, they should pay for the damage happening due to their negligence.

Specific Restrictions

Furthermore, the owner should also mention clauses regarding disruptive behaviour. It includes illegal activity, excessive noise, etc. These types of restrictions can help you save from any legal actions later on.

Insurance

If you are renting your commercial properties, it also comprises tenants' insurance. The insurances include worker's compensation, plate glass and public liability. Also, any breach in the insurance will signify a contract violation. As a result, the landlord can have full authority over the particular property.

Keeping Pets

Moreover, if pets are prohibited in the property, make sure you mention this clause. But, if you allow them but have some restrictions, you need to mention that. It includes information like the size of pets and how many of them are allowed, etc.  

Other Crucial Restrictions

Lastly, your agreement should abide by the relevant laws. It should also meet the standard of safety and health, anti-discrimination laws, limitations, etc. Also, the parking facilities, utility payments, etc. business from home, etc. you must check all of these.

In conclusion, these are some important terms that you must include in the rental agreement. So, follow the above steps to ensure you don't forget any clause. Furthermore, hiring any professional or a broker can help you make a reliable rental agreement.

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