“Common Contents Of A Generic Lease Agreement”
Are you in need of a lease agreement but don’t know how to go about writing one?
Most lease agreement templates found on the internet contain the same information. This is called a generic lease agreement and is often used when property managers are making a lease agreement that is needed immediately.
If you’re planning to write your own generic lease agreement, then this article can help you do exactly that.
Know More About What’s Inside A Generic Lease Agreement
Knowing the contents of a generic lease agreement is part of being a property manager.
This is important if someone needs to rent your property right away and a contract needs to be provided to the tenant immediately. This is where a generic lease agreement comes in handy.
However, before discussing the common contents of a generic lease agreement, let us determine what a lease agreement is.
Your Lease Agreement
A lease agreement is simply a contract between a landlord and a tenant that gives certain rights to both parties, such as length of accommodation to the tenant and fixed monthly payment to the landlord.
Once your tenant finally moves into their rented property, they are bound to follow anything that is written in the lease agreement until the end of their lease. Before writing the contract, you and your tenant must discuss the terms and policies. Once you have both reached a compromise, the lease agreement will need to be signed to showcase that both parties are in accordant to what is written.
This lease agreement will then become a legal document. This means it can be presented to a court if something bad happens to either parties listed on the agreement.
Contents Of A Lease Agreement
There is no actual standardized lease agreement. Content often differs from case to case, depending on what kind of lease will be needed and what asset is in review. It is also highly dependent on the parties involved and the terms they have set forth.
As a lease agreement is a legal contract, it should cover all the business details agreed on by the property manager and the tenant. However, in times of urgency, this can be forwent by using a generic lease agreement.
The following points cover all the typical clauses of a generic lease agreement. Although it is not an exhaustive list, it contains the basic information of the tenancy.
1. Name Of Tenants
Every individual who will be living in the property should be named as a tenant and sign the lease. This makes each one of them responsible for all terms that will be included in the generic lease agreement. Contact information, address, and other basic and verifying information of these individuals must be included, along with the property manager or landlord’s details.
2. Description Of The Rented Property
A detailed description of the rented property, including the address and covered, should be included.
3. Term of the Tenancy.
The lease agreement should indicate the term and/or length of the tenancy. Lease agreements typically last a year. However, this entirely depends on the landlord and how much flexibility will be allowed.
The lease agreement must specify the fixed monthly payment for rent, when it is due, and how it will be paid (electronically, through bank transfer, etc). To avoid confusion and disagreements, enumerate:
- Acceptable payment methods
- The grace period for payments and late fees, if there will be any
- Extra charges if the check bounces
5. Security Deposits
A generic lease agreement also contains details about the amount of security deposit that must be given by the tenant before the lease starts. It is important to give specifics regarding this as security deposits can be one of the common causes of arguments between the parties involved.
The lease agreement should be clear on the following:
- The amount of security deposit
- How the deposit may and may not be used
- Whether the deposit is refundable or not
- If the deposit is interest-bearing or interest-free
6. Repairs, Utilities, and Maintenance Responsibilities
Most generic lease agreement contain details about the responsibilities of both parties. Clearly state these responsibilities, particularly with regards to repairs and maintenance. This should include:
- The responsibility of the tenant to keep the property clean and to pay for damages caused by neglect.
- If there are any defective or dangerous conditions present in the property, the landlord must be alerted and the proper procedure must be followed.
- Restrictions on improvements and repairs.
Ensure that you have an explicit clause prohibiting disruptive behaviour and illegal activity.
Indicate specific rules and policies that must be followed throughout the duration of the term. Penalties for doing otherwise should be stated. It is also recommended to get the agreement checked to guarantee that it complies with all relevant laws.
8. Termination of Lease Agreement
In the circumstance that the association fails to be agreeable, there should be a clause stating the grounds under which either of the parties can terminate the agreement and the notice period that must be given to each other.
Tips For Property Managers
As the property manager, you should be aware of the various laws in your state before creating a lease agreement.
When you have finally decided to sit down and begin writing the agreement, ensure that every clause is clear and straight-to-the-point. Do not use confusing terms and use words that are understandable to avoid misunderstandings.
Once the draft is completed, it is advisable to consult a lawyer to ensure that everything is in accordance with the law.
Final Thoughts About Generic Lease Agreement
Today, we talked about the common contents that can be found in a generic lease agreement. This will help you avoid the hassles of having an unwritten lease agreement, particularly if there is a matter of urgency.
A generic lease agreement only contains all of the necessary information that is needed to know about a tenancy. It usually contains the names of the individuals that are involved in the tenancy, details about the rented property, and all of the important information regarding the actual tenancy.
It is your responsibility as the property manager to provide a written lease agreement that is in accordance with the law.
If you have questions about the common contents of a generic lease agreement, you can leave it below.
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