When an owner gives their property to a tenant for residential or commercial use, both the parties sign a contract. It is a legal document that is known as a rental agreement. It contains all the necessary details of the contract. To start with, it has the names of the landlord and the tenant. It has details of the property that is being rented. The monthly rent is described in it, along with the accepted method of payment. All the terms and policies regarding the rent are given in it in great detail to avoid any confusion. Most importantly, it contains info about the people using the property. This allows the landlord to approve of certain persons that are going to stay there. The purpose of the said property is also there in the rental agreement.
The primary purpose of this contract is to settle any disputes that arise in future between the two parties. Both the landlord and the tenant can be taken to court by the other party if the former fail to abide by the agreement. Once you have signed such a contract, you will have to follow it, no matter what. Thus, it is very important that you check the document very carefully before singing it. You should get it checked by your realtor or a lawyer if you are having any confusion.
Creating a rental agreement has become quite easy nowadays with the help of the internet. The format is easily available. You will just need to fill in a few details.