Template Rental Agreement and the Differences with Template Lease Agreement
If you are thinking about renting out a room or a property, you need to make use that you have the right forms of agreement – whether it is the template rental agreement or the lease agreement. Whereas most people believe that these kinds of agreements are the same, they are actually different in nature. Both of them have different key features and elements that differentiate them.
Rental Agreement vs Lease Agreement
So, what are the differences between the two? Well, the template rental agreement is a legal contract that is generally used for month to month usage. During the rental period, flexibilities are given highly to the landlords because they can make changes to the agreement. As long as the landlords give proper notice to the tenants, they are free to make any change they want. Be advised that the landlord must provide 30 days of notice before changing anything. Be advised that different states have different amount of time.
For the lease agreement, the agreement is for a certain amount of time – such as for 6 months or 1 year. During this time, landlords won’t be able to make any change to the agreement terms. If the landlords want to make changes, they will have to wait until a new agreement is made so they can re-negotiate of the new terms.
The Important Elements
Whatever types of agreement you have, make sure that you find these crucial elements in the agreement:
- The names of the parties involved in the activity. It’s not just the names of the tenants and the landlords, but also the name of all adults occupying the property. Let’s say that the tenant is a family with 3 kids. It means that the names in the agreement should be your name as the landlord, and the name of the husband and the wife as the tenants. It means that the agreement will bind all the involved parties. In case one of them mess up, you have the right to terminate the agreement.
- The tenancy terms. You need to include the clause for your rental activities and also the termination options – including the details.
- The rent. It includes the rent and how it is paid
- The occupancy limit. It means that only people signing the agreement are allowed to live in the property, minus the minor kids.
- Fees and security deposits. These are important so make sure to include them in the agreement.
You can always check our collections of template rental agreement or see those examples below.