4 essential components of a residential lease contract 

On Behalf of | Feb 15, 2022 | Real Estate |

A well-written lease agreement is more than just a contract. It is the landlord and the tenant’s defense against potential disputes. A residential lease contract specifies the terms of engagement between the landlord and the tenant.

However, not all lease agreements are created equal. There are certain key clauses every good residential lease agreement must contain. Here are some of them:

1. The identities of the parties to the agreement

Every lease agreement, like any other binding contract, must begin with the identities of the parties involved. In the case of a residential property lease, these are the landlord and/or their agent and the tenant who will be renting the property. This clause should include the names of the parties to the lease as well as their contact information. 

2. Rent amount and due dates

The lease contract must include the rent amount as well as when and how it will be paid. The agreement should also articulate what will happen if the tenant defaults in rent payment. The agreement should also talk about the security deposit. It should indicate when the security deposit was paid, the amount, the procedure for returning the security deposit and when deductions can be made from this payment. 

3. Lease period

The lease agreement should indicate the dates the contract commences and when it will end. It is important that specific dates are indicated in the contract to avoid vague provisions. This clause may also specify whether the lease will be open for renewal or not. 

4. Property use

The lease agreement should stipulate how the property shall be used. For instance, it should specify that the property shall be used for residential purposes only and not for any form of commercial activity. It should also indicate that the property shall not be used for any criminal activity. 

A residential lease agreement is an important document for a healthy landlord-tenant relationship. Find out how a properly written lease agreement can help you safeguard your rights