A Brief Introduction About the Tenant Lease Agreement
The Agreement should include finer details such as the Property Owner details and the Tenant details. The address proof, social identity number must be specified in the records of the Agreement. The agreement should have all the required details enclosed in it.
The agreement template should be prepared comprising of the specific details such as the period of stay, renewal time period, conditions of living, electricity usage, water usage, primary tenant, secondary tenant, etc. all the details must be mutually agreed upon by the Property Possessor and the Tenant.
A third-party reference would be required to ensure a high degree of surety and confidentiality in the agreement. A legal surety should be enclosed in the agreement to remain on the safe side.
Who Takes the Tenant Lease Agreement?– People Involved
The Agreement serves as a basis for a smooth and comfortable stay without any hindrances and doubts from both the ends. The agreement must be respected by the Property Possessor and the Tenant. The Tenant must showcase his/her references, credit history, and employment history and should satisfy the credential requirements of the Property Owner.
The people’s reputation and ethics are considered while deciding the Tenant role position. Document of the reference person, Tenants should be verified, and credibility should be established before committing to the contract. The social status number of the Tenant should be taken, and its validity should be checked.
Purpose of the Tenant Lease Agreement– Why Do You Need It?
The purpose of the tenant lease agreement to elucidate the stay and intended usage of the available facilities should be mentioned in a crystal-clear manner with all the required specific conditions. The number of days intended to stay in a month and the number of people staying should be informed to the Property Owner beforehand.
The Rental Payment date every month should be mentioned, late payment fees, the penalty for late rental payment fees, the due date for late payment fees, rental agreement violation dates should be mentioned in a clear manner. The dates mentioned in the Tenant Rental Agreement should be cordially agreeable from both the sides and followed meticulously.
Contents of the Tenant Lease Agreement– Inclusions
The Agreement must include contents that are of valid purpose and significant dimensions in a lucid and systematic manner.
Parking Space Rental Agreement: Parking of any type of Automobile or Motorbike should be informed, and space requirements should be discussed beforehand.
Property Condition Check: The agreement should bestow the repairs required, and pre-existing damage conditions of the Property must be noted and acknowledged by the Property Owner.
Modifications: The Tenant should inform the appropriate modifications intended from his/her end, such as Painting work, Door change, flooring modification, etc. The Property Owner should acknowledge the necessary modifications and mention it in the contract.
Appliances: The number of appliances, consumption, and usage should be noted and printed in the agreement. Appliances such as Microwave, dishwasher, robotic vacuum cleaners should be communicated to the owner beforehand. The Owner must communicate his/her intentions and opinions before the Appliances are moved into the Property.
Furnishings: The Furniture present in the Tenant residential place must be noted before entering and after entering the residential place. The Furniture conditions and status must be evaluated by the Property Owner.
A list of all furniture items must be maintained by the Owner. In case of any discrepancies, he/she should inform the Tenant regarding it. While vacating the property, the owner must cross-check if all the furniture items are present in their respective zones. A waterbed must not be encouraged by the Property Owner as in any leakage in the waterbed can lead to furniture damage, carpet molding, etc. A waterbed can easily untidy the place and cause future problems in the Residential Property.
How to Draft the Tenant Lease Agreement?
Maintenance: The contract should inculcate the maintenance charges and property hygiene while staying in the property. The Property Maintenance must include removing excess snow, lawn care, Gardening, etc.
Payment Location: The location and mode of payment should be mentioned in a crystal-clear manner. The Bank and branch where the Monthly payment amount will be deposited should be mentioned in the Agreement. The mode of payments and the payment receipt should be discussed and implemented in a prompt and punctual manner.
Insurance: The type of insurance and the amount of insurance should be disclosed by the Property owner.
Late Fees and Grace Period: The additional fees charged beyond payment after a certain date and the grace period allotted for payment should be discussed beforehand. The Tenant must be aware of all the above dates, and no perplexing situation should take place regarding dates of payment.
Pets: In case pets are being kept in the house, the landowner must take a separate security deposit for the pets, and property damage from the Pets must not take place.
Security Deposit: The amount to be paid as a security deposit and the number of months of payment to be considered as a security deposit should be considered, and agreement should take place.
Receipt of Agreement: The Receipt of Agreement must be kept for future purposes, and acknowledgment of the receipt should be handy.
Benefits & Drawbacks of the Tenant Lease Agreement
Advantages:
- Clear cut benefits and values of the agreement can be illustrated in the Agreement. Advantages such as sub-letting facility can be availed in the contract.
- Payment dates timings and location can be known easily in the agreement, and it will avoid discomfort to the Tenants.
- Sub-letting Facility: The Tenant must be aware if any sub-letting facility is provided in the residential premises or not. Multiple tenant lease contract consent must be taken before awarding any sub-letting facility.
- Utilities: The Utilities available at the owner’s place and the utilities required by the Tenant must be described in the agreement. Utilities such as Water, Electricity, Television Cable connection, Internet connection, etc. must be discussed and briefed with the Property Owner.
- The Facilities available and usable at the Property premises and utilities provided can be known to the Tenant in the contract.
Disadvantages:
In case of any natural disaster such as rains, extreme winds, the damage caused cannot be exactly known in the agreement. During the vacation period, if any unexpected robbery or damage takes place, then damage control may be difficult.
Negotiation Strategy
Negotiations should be based on the rules mentioned in the Tenant Lease Agreement. In case of any Reference, then during negotiation, he/she should play an important part in getting the terms negotiated between the Owner and Tenant.
What Happens in Case of Violation?
In case of violation(1), the payment receipts and acknowledgments will be checked in a timely fashion. The area of jurisdiction laws will be formulated, and a necessary arbitrator must be present to represent the case in the Jurisdiction Limits.
As per the laws stated in the Tenant Lease Agreement, the payment, hygiene, valuables maintenance should be administrated and followed judiciously. Tenant Lease Agreement is very important, and in case it is not followed properly, it will lead to various complications. Hence, we can comprehend that the Tenant Lease Agreement must serve as an Agreement of Reference and Confidentiality between the Property Owner and Tenant.