There were more Americans living in rented accommodation in 2017 than at any point for the preceding 50 years.
This level of use of rented accommodation makes lease agreements hugely important. Disputes between landlords and tenants are not uncommon, and they can get very messy in the absence of proper lease requirements.
Setting out detailed requirements in your leasing document ensures that both parties to their contract know their rights and responsibilities.
Learn more about lease requirements, and how to use them to keep your relationship with your landlord or tenant straightforward.
What is a Lease Agreement?
A lease agreement is a contract that a tenant and landlord agree upon before a tenancy begins.
It will set out all the rights and responsibilities of each party. It also lists the basic details of the tenancy, such as the names of the landlord and tenants and the physical boundaries of the property under lease.
Common Lease Requirements
Aside from the technical details of the lease, there will be a long list of requirements. The specific details of requirements will vary considerably from one lease to the next, but the contracts tend to follow a similar format.
Generally speaking, the landlord sets out the terms of the lease. However, landlords can be amenable to negotiations or additions by tenants in some cases.
Different states and municipalities have different rules on lease requirements. Depending on where you are, the rules can be more favorable for either landlords or tenants.
Arrangements in Relation to Rent
This is the most important requirement on any lease agreement. It should always be clear how much rent is, on what date it is due, and what method of payment should be used.
Depending on where the property is, there might be restrictions on how quickly the rent on the property can increase. In San Francisco, for example, rents cannot increase by more than 1.8% between March 2020 and February 2021.
These kinds of rules are common in places where the cost of accommodation is too high.
Length of the Lease
Lease terms vary considerably. Long-term leases generally roll over from one year to the next.
Again, different states have different rules when it comes to lleasingterms. Some areas may allow that a tenant has the right to remain in a property for a given length of time once a certain period of the tenancy has elapsed.
Security Deposit
The security deposit is a sum of money that the tenant gives to the landlord before occupying the property. The landlord returns it when the tenant leaves, assuming they have not breached any lease terms.
This sum acts as protection for the landlord. Without it, tenants would be free to mistreat the property or to leave at short notice.
Most areas have legal limits on how much landlords can require as a security deposit. Most security deposits will be around the same amount as a month’s rent.
Communication
Leases will often contain some provision about how and when a tenant will be able to contact a landlord. Some landlords might direct tenants only to contact them during business hours. This is particularly common where a letting agent is carrying out the role of the landlord.
Landlords must generally make exceptions to this in cases of emergency.
Many landlords nowadays choose to communicate with their tenants via social media, as it’s more convenient and cheaper than alternatives.
Pets
Many landlords have strict rules against pets in the house. These are more likely to be relaxed in favor of long-term tenants. If you’re looking for a new lease, it might be difficult to find a landlord that will accommodate your pet.
Smoking
Like pets, landlords tend to be restrictive when it comes to smoking indoors. If there is evidence that tenants have been smoking indoors (in contravention of their lease agreement) this is often grounds to forfeit a portion of the security deposit.
Guests
Landlords vary widely in terms of their approach to guests. Some take a very hard line on the issue, while others allow guests to come and go freely as long as they have respect for the property.
However, a long-term tenant that is masquerading as a guest will usually be an issue. A landlord can be entitled to charge more for a property if an extra tenant is staying there. Also, their house insurance may not cover a resident who has not registered as a tenant.
For these reasons, landlords are usually strict in their requirement that all long-term occupants of the property put their name on the lease.
Easements
An easement is a right that one piece of property has over an adjoining piece of property. A right of way is the most common example of this.
If such an easement exists prior to a tenancy, new tenants will usually have to agree to it as a lease requirement.
How to Draft a Proper Lease Agreement
Drafting a lease agreement that will cover all the necessary bases is easier said than done. To make sure you get it right, it might be a good idea to enlist help from a professional.
A lease agreement is a contract, so a contract lawyer is usually the best person to see to make sure your agreement is effective and fair for both parties.
Protecting Your Rights & Interests with a Bulletproof Lease Agreement
Whether you’re a landlord or a tenant, you have rights that you need to protect. The best way to ensure that you do that is by putting in time and effort when drawing up your lease requirements. This kind of written protection is indispensable if there is a dispute at some point.
If you want help with your lease agreement, or you’d like to inquire about any of our other property management services, contact us today.
