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A Rental Agreement is an official document that is used to show the agreement between a landlord and a tenant. It is viewed as a contract once it is signed by both parties indicating that they agree to the terms and conditions stated. Once a landlord decides to lease his property, he drafts a Rental Agreement and presents it to the potential tenant. The potential tenant is then expected to carefully read the Rental Agreement. If there are any changes that the tenant feels should be made, they will discuss it with the landlord until they achieve what is called a ‘meeting of the minds.’ That is when the tenant will be expected to sign the agreement, and it officially becomes a legal contract. Below we shall discuss the key elements of a Rental Agreement.

Terms and Conditions of the Agreement

A Rental Agreement should always include a clearly stated description of the terms and conditions of the agreement. The agreement should not overlook anything that might prove to be important in the future. The terms and conditions should always be stated in a numbered list for easier referencing. The terms and conditions are the main part of the Rental Agreement, and if they are not well outlined, it could result in disputes in the future.

The Scope of the Rental Agreement

A Rental Agreement should clearly state the scope of the agreement. For example, is the Rental Agreement for only one house or does it include other houses, and if that is the case, how much more? A Rental Agreement should clearly state the property under lease. This is to avoid confusion and future disputes.

Rules and Regulations

A Rental Agreement should always indicate the rules and regulations that must be followed. Rules and regulations are different from the terms and conditions. The terms and conditions are used somehow externally. For example, you can state that the rent of the property should be paid before or on a certain date of the month. If that is not followed, then it will attract penalties. The penalties should also be clearly stated. An example of the rules and regulations can include; ‘No hawking within the property premises.’ Rules and regulations are mostly used by people who are already tenants of the property. For example, you can choose to include; ‘Always keep the gate closed’ as part of your rules and regulations.

A Rental Agreement is a crucial document that every landlord must have. It should have the name of the property, especially if the landlord has other properties on lease. It should include the name of the potential tenant and any other relevant information about them. A Rental Agreement becomes a contract upon the signing of the tenant. A signature is always very crucial in all types of agreements; including a Rental Agreement. Therefore, it is good to ensure that the tenant signs the Rental Agreement.  A signature indicates that the tenant has read and understood, but above all, he has agreed to follow the terms stated in the contract. It is also important to include the rent of the property under lease on the Rental Agreement.

Here is our collection of 42 Free Rental Application Forms & Lease Agreement Templates,

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Download Rental Application Template 01 

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