When you are looking to rent out a property, there will be a lot of time and expense involved in creating your tenancy agreements. The terms you put in your lease agreement are legally binding and can lead to serious consequences if either party fails to meet their responsibilities.
A tenancy agreement is a legal document that sets out some of the basic terms of the tenancy, such as rent and deposits, as well as the responsibilities of both tenant and landlord.
Following these tips will help you save money as a landlord if you do well to capture them in your tenancy agreement.
Details of All Parties to the Tenancy Agreement
The tenancy agreement is the contract between you and your tenant which legally regulates your tenancy. It should contain all the essential terms, including:
- Who occupies the property
- How much rent will be paid and when it should be paid
- Who is responsible for utility bills
- Details about any pets
- Whether or not smoking is allowed on the property
- Any obligations for maintaining the property
Description of the Rental Property
The rental property description should convey to a potential tenant the size and features of the property. It may suggest any special features relating to appliances, building structure, or safety. The description should be brief and to the point.
The Term of the Tenancy
The term of the tenancy determines how long it will run from when the tenant signs the tenancy agreement. This should be specified in months with either a year (e.g. 12 or 13 months) or by using a fixed period (e.g. a fixed term of 6 months). There is also another option where the period is specified in days, e.g. 28 days (weekly rental agreements) or 4 weeks (Fortnightly rental agreements).
Pet Details
One of the most important decisions you will make as a landlord is whether to allow pets on your property. Be sure to include the pertinent information in your tenancy agreement regarding renting with pets if that is something you allow.
Rental Rate and Form of Payment
If a tenant is renting a house or unit from a landlord, they may be asked to pay a deposit. In this case, you are legally required as the landlord to put that deposit into a tenancy deposit scheme for safekeeping.
Inventory
Create an organised, clean-cut inventory of the items you are renting out. Note any damages or missing pieces on the list. Expect this to be a busy task at the beginning of every tenancy.
Conclusion
In conclusion, a tenancy agreement should be a legally binding contract between a landlord and tenant to set out the terms and conditions of the rental. This should include the terms discussed above and other responsibilities of both parties. All terms have to be agreed upon in writing before they can move into the property in order to secure a happy and stress-free relationship between tenant and landlord.
