What is a residential lease agreement?
A residential lease agreement may sound like a simple enough piece of legal jargon, but do you really know the difference between a basic rental agreement or residential agreement? Here, we look at what a standard residential lease agreement is so that you know what you need to include in a residential lease agreement form, whether you are the lessor or the lessee.
A residential lease is a contract between a landlord and a tenant - or a lessor and a lessee. It will outline and detail the terms under which the tenant can occupy the landlord’s property. When it is signed and finalized, the agreement means that the tenant then has a right to live in the property for as long as the agreement stipulates. It also outlines when and how much the tenant should pay the landlord in return for renting them the property.
Importantly, it also includes what should happen in the case that the agreement is breached. It will also outline what the tenant can and cannot do in the property (like a no-smoking provision, for example) and what the landlord can and cannot do (like entering the property without proper notice).
A residential lease agreement should contain the following as standard. Firstly, a description of the property so that the property in question cannot be in any doubt. It also needs to include any non-fixed assets that are there - be it a dishwasher or TV, for example. The description also needs to consider the quality or standard of the property too so that when it comes to leaving the property, the tenant is only held responsible for the damage that they caused.
Then, the agreement should also include the name of the tenant and any other people living there. It is also necessary to include how long the duration of that particular tenancy can last and the notice period of the tenancy. If the tenants wish to renew, there should be a clause that details how that renewal can occur. It may want to include any increase in rental payments as well as when the new notice period can given. Finally, it has to include all aspects relating to payment as mentioned above. This means any security deposit needs to be detailed in the residential lease agreement and any extra fees or costs.
Without a doubt, the best advantage that a residential lease agreement provides is the legal protection that both parties gain from entering into a legally binding contract. It means that neither party should be able to take advantage of the other, and if they do breach the contract, there will be legal ramifications as a result. It means that breaches of the contract are far less likely to occur, and as a result, profitable and mutually beneficial leases are established.
Contractbook has a deep resource regarding leasing agreements, and residential lease agreements are no exception. Our tenancy agreement can be used and amended as necessary to create a residential lease agreement with which both sides are happy. Such amendments are easy as negotiations are streamlined thanks to a solid starting point for both parties and the technology that our software provides. Collaboration is quick so that a final agreement can be signed much more efficiently than through more traditional, older means. Plus, our contracts can be stored safely online, making them straightforward to find for reference whenever they may be needed.
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