Terms to be included in a lease agreement
Whether you are taking a property on lease or giving it, a proper agreement is important to prevent any disputes in the future. The contract should contain all the terms and conditions both the parties agree on. To ensure that your lease agreement is flawless, you should include all the terms described below.
- It should have the name of the individual or the company that is going to use the property. If there are multiple occupiers, all their names should be on the agreement. This makes all of them responsible for the monthly payment and proper use of the property.
- The lease agreement should clearly describe the purpose you have leased the property for. So, if it is used for a purpose you do not approve, you can terminate the agreement.
- It should contain the monthly payable amount and also the acceptable methods of payment.
- A lease has a fixed term. Thus it should include the term and whether the contract is automatically renewed or not after this term.
- The agreement should describe responsibilities of both parties towards the property. It should tell that who will manage the repairs and maintenance, and who will pay the bills.
- Any activities that the occupier is restricted from doing should be mentioned in the lease agreement.
- It should contain the details about the security deposit like the amount and in what situations it can be made nonrefundable.
- The policies regarding pets and other such issues should be clearly stated.