Renting property can be a great way to earn passive income. As a landlord, there are certain legal obligations that you must fulfill to protect yourself and your tenants. One of the most important documents that you need is a property rental agreement. This document outlines the terms of the rental agreement and protects the rights of both parties involved.
With that in mind, we’ve put together a sample property rental agreement to guide you through the process.
INTRODUCTION: This agreement is entered into between the landlord, [landlord name], and the tenant, [tenant name]. The landlord agrees to rent the property located at [property address] to the tenant for the period of [rental period] at the agreed-upon rental rate of [rental rate] per month.
TERM: The rental period will commence on [move-in date] and will end on [move-out date]. The tenant is responsible for vacating the property on or before the move-out date.
RENT PAYMENT: The tenant agrees to pay rent on the first day of every month. Rent must be paid in full and on time. In the event of a late payment, the tenant will be charged a late fee of [late fee amount].
UTILITIES: The tenant is responsible for paying all utilities associated with the property, including but not limited to electricity, water, and gas.
SECURITY DEPOSIT: The tenant must provide a security deposit of [security deposit amount] before move-in. This deposit will be held by the landlord and will be returned to the tenant at the end of the rental period, provided that there is no damage to the property.
PROPERTY CONDITION: The tenant agrees to keep the property in good condition and to promptly notify the landlord of any damage. The tenant is responsible for any damage caused to the property during their stay.
PETS: [Indicate if pets are allowed or not]. If pets are allowed, the tenant must pay an additional deposit of [pet deposit amount] and adhere to any pet-related conditions outlined in the agreement.
TERMINATION: Either party may terminate this agreement before the end of the rental period by providing written notice of [notice period] days.
CONCLUSION: This rental agreement represents the entire agreement between the landlord and the tenant. Any modifications to this agreement must be made in writing and signed by both parties.
In conclusion, having a well-written property rental agreement is crucial for protecting your investment and ensuring a smooth tenancy for both you and your tenants. Be sure to consult with a professional to draft a legally binding agreement that covers all your needs.