FAQ
About Rental-Agreements.com
Rental-Agreements.com was created by attorneys and a team of dedicated programmers to provide the quickest, easiest way to create the custom rental agreement you need.
We realize that not everybody has the time, energy, or ability to draft a rental agreement from scratch, but we also know that having a written rental agreement is the best way to protect the interests of tenants and landlords alike. That’s why we developed a simple web application that allows users to fill out a short form and print a custom rental agreement in about ten minutes.
To create your custom rental agreement, simply complete a short online form. The information you enter and questions you answer are used to instantly generate your custom rental agreement.
Many people create their rental agreements in 10 minutes or less with Rental-Agreements.com, while 99% of people create their rental agreements it in less than 25 minutes.
The Rental Agreement
A rental agreement is a contract between a landlord and a tenant or tenants that is legally binding. It outlines the rights and responsibilities of both the landlord and the tenant during.
Verbal agreements can be difficult to enforce. If disputes arise, a court has to listen to evidence and decide whose version of the truth to accept.
Courts are generally obligated to uphold the terms of the written agreement. Also, written agreements allow both tenants and landlords to review their rights and responsibilities from time to time or when necessary, to ensure that there are no misunderstandings or surprises.
A rental agreement typically covers:
- the type of property and address of the property;
- the term of the tenancy and whether the tenancy is fixed or periodic;
- how and when rent is to be paid and how much rent is to be paid; and
- the provisions of any security/damage deposit.
- A rental agreement may also cover:
- taxes that the tenant is to pay;
- landlord and/or tenant improvements and signing incentives;
- landlord and/or tenant repair obligations;
- who will pay which utilities;
- whether the tenant can assign or sublet the property:
- notice provisions for termination of the tenancy; and
- insurance provisions.
The rental agreement is governed by the laws of the jurisdiction where the property is located. For example, a rental agreement for a house in the state of Texas will be governed by the laws of Texas.
The Premises
Only tenants and people listed as occupants may live in the premises. If there is any change to the list of permitted tenants, the landlord must be informed and approve. If a child is born or adopted while the tenant lives in the premises, the child is automatically added to the rental agreement as an occupant.
If you believe that it may be an issue, you may wish to check with your local housing/public health authority to see if there are any restrictions on the number of occupants allowed in a rental home.
A basement suite is a self-contained dwelling unit complete with its own kitchen, bathroom, and living area. Most tenants of a basement suite use a separate entrance to enter the premises. Renting a room is usually different, in that the tenant will likely share a kitchen and/or bathroom with the landlord, and may use the same entrance.
The Parties
The parties to a lease are the landlord and the tenant. The landlord owns the property and allows the tenant to use the property in exchange for the payment of rent.
A guarantor or surety is a person who agrees to pay losses to the landlord in the event that the tenant cannot pay rent or otherwise breaches the rental agreement.
A landlord is required to provide the tenant access to the property and allow the tenant peaceful enjoyment of the property. The legal owner of the property also has obligations to maintain the property to minimum standards. The landlord's obligations are defined by the rental agreement and laws specific to where the property is located.
The tenant is required to pay rent on time and not to cause damage to the premises. The tenant's obligations are defined by the rental agreements and laws specific to where the property is located.
If you breach a term of the lease you are responsible for correcting it. If you are the tenant, this may involve you paying money to fix any problems caused by yourself or your guests. If you do not voluntarily pay to correct the breach you can be sued for damages sustained as a result of the breach and/or possibly evicted by the landlord.
If you do not fill in information about one of the parties, a blank space will be provided in the printed form that can be filled in later. However, we recommend that you attempt to fill out the questionnaire as completely as possible, for greater clarity.
Rental Agreement Term
You can choose from several different lease terms for your rental agreement:
Fixed End Date
A rental agreement with a fixed end date specifies the exact day the rental agreement will end. Neither party has to give notice to terminate the rental agreement; the contract simply ends on the specified date. During a fixed term rental agreement, the landlord cannot increase the rent, or change any other terms of the lease unless he or she specifically reserves the right in the agreement and the tenant agrees to the changes.
Fixed Number of Weeks/Months/Years
A rental agreement for a fixed number of weeks/months/years gives a start date for the rental agreement and the number of weeks/months/years that the rental agreement will run.
For example: the rental agreement could start on September 1 2012 and then continue for a period of 18 weeks.
Periodic
A periodic rental agreement with automatic renewal will continue so long as neither party wishes to terminate the rental agreement.
To terminate the rental agreement, the landlord or tenant must give notice of their intention to leave as specified by statute. A landlord can raise the rent, change the terms of the agreement, or terminate the rental agreement by providing proper notice as required by statute. The tenant must move out at the end of the notice period or the landlord can begin eviction proceedings against them.
The landlord may not change the terms of periodic rental agreement during the initial rental period (no matter the length of the lease period). If the landlord tries to change the rental agreement for the next period, the tenant can either accept the changes and continue to live at the premises, thereby renewing the rental agreement under the new terms, or give proper statutory notice to terminate the rental agreement.
If the tenant vacates the premises prior to the end of the term of the agreement, the tenant will typically still be responsible for payment of rent for the entire length of the rental agreement (provided the tenancy is not in a jurisdiction that allows the tenant to give notice to prematurely end a fixed term tenancy). Typically, if the Landlord is able to re-rent the premises prior to the end of the lease of the breaching tenant, the breaching tenant is no longer required to pay rent as the landlord cannot collect double rent for the premises.
Some rental agreements may also contain penalty clauses whereby the tenant is required to pay "re-rental fees" to cover some of the costs of the landlord, who has to re-rent the premises. However, the "re-rental fee" has to be reasonable and must be a pre-estimate of the damages that the Landlord will suffer in having to re-rent the premises early.
Periodic Rental Agreement
The rental agreement will continue to automatically renew until one of the parties wishes to terminate the agreement (by giving proper notice as required by statute).
Fixed Term Rental Agreement
The leasing relationship may still continue after expiry if both the landlord and the tenant wish it to.
In some jurisdictions, statute dictates that it will become a Periodic term rental agreement, usually of the month-to-month variety, though this may vary. In other jurisdictions, the fixed term rental agreement may become a "tenancy at will" or a "tenancy at sufferance" when it expires, which lasts only as long as both parties wish it to, and is not subject to as much legal protection as a Periodic lease.
If you wish to terminate all rights under a fixed term rental agreement as soon as the agreement expires, you must serve proper notice before the end of the rental term, in accordance with local statute.
Option to Purchase
An option to purchase is a clause in a rental agreement that allows the tenant to buy the property during the rental term at an agreed upon price.
In most cases, the tenant pays the landlord a non-refundable option deposit in exchange for the exclusive right to buy the property from the landlord within a certain amount of time. If the tenant takes advantage of the option to purchase, the option deposit goes towards the purchase price of the property. If the tenant does not take advantage of the option, the landlord keeps the deposit.
Pros for the tenant:
- does not have to pay the purchase price up front
- the purchase price may be fixed, so the tenant does not have to worry if the real estate market fluctuates.
Cons for the tenant
- will lose option deposit if they do not exercise option to purchase
Pros for the landlord:
- can possibly sell the property in a slow market
- can possibly charge a higher rent than possible with a regular rental agreement
- if the buyer does not exercise the option to purchase, the landlord still keeps the option deposit
- tenants with a vested interest in the property tend take better care of it than ordinary tenants
Cons for the landlord:
- will not receive immediate cash sale for the property
- if the real estate market rises, the landlord could lose the appreciated value of the property if a purchase price is specified
Notice
Most jurisdictions require a minimum amount of notice if a tenancy is being terminated. If a rental agreement specifies a notice period shorter than the legal minimum, the legal minimum will still apply.
A landlord usually does not have the right to enter a rented apartment suite unless:
- there is an emergency (for example a fire or gas leak), or
- the landlord gives the tenant proper notice as defined by statute. A tenant cannot refuse entry to a landlord if proper notice is given
Before the rental agreement expires, the tenant must provide proper notice to the landlord that he or she does not intend to renew the lease. Typically, the tenant must give a notice period of one month for agreements with a term of one month or less, and a notice period of two or three months for agreements with a term of more than one month. However, this varies according to jurisdiction. The tenant should consult the governing statute for the jurisdiction the property is located in to find out the required notice period.
If the landlord and tenant both agree to an increase in rent in exchange for additional tenant benefits (more parking space, for example), the rent can be increased at any time.
If no additional benefits are being provided to the tenant, a landlord can generally only increase rent once in a 12 month period.
Deposits
A deposit is a sum of money paid by the tenant to the landlord to ensure that the rental property is in good condition at the end of the rental term.
If the rental period has ended and the tenant owes the landlord money for either damages to the property or unpaid rent, the landlord can deduct money from the security deposit.
The landlord generally cannot deduct for damages caused by reasonable "wear and tear" on the premises.
The landlord can deduct for stains on the carpet or countertops, large holes in the wall, missing or destroyed appliances, and other such things that are beyond reasonable wear and tear.
The amount that can be charged for a security deposit is typically between half a month rent to two months rent, depending on the governing legislation.
In some jurisdictions, a landlord is not allowed to ask for a security deposit. In other jurisdictions, a landlord may require both a security deposit and other types of deposits (for example, a pet damage deposit).
Miscellaneous
Assignments and subleases both occur when the tenant gives his or her rights under the rental agreement to a third party. This typically requires the consent of the landlord.
With an assignment, the tenant gives to a third party all of his or her remaining rights under a rental agreement for the entire term of the rental agreement. The tenant no longer has any rights to the property or obligations to the landlord.
With a sublease, the tenant can transfer a portion of the rented space (such as a room in a house) or a portion of the tenancy (such as 5 of the remaining 6 months of the term) to a third party. The original tenant retains whatever rights under the agreement he or she has that were not transferred to the third party, and also retains most of his or her obligations under the lease. The original tenant can still sue and be sued by the landlord for rental agreement violations.
Signing incentives are bonuses the landlord gives to the tenant, typically for signing a rental agreement. If the tenant breaches the rental agreement, these incentives may have to be paid back to the landlord.
While the landlord typically has insurance, it usually covers only the landlord's assets and liabilities. If the tenant wants coverage for his or her personal belongings or to cover his or her own negligence, the tenant will need to have renter's insurance.
A rerent levy is a charge that a landlord can apply to a tenant if the tenant breaks the rental agreement conditions or vacates before the rental agreement term has expired. It is usually only charged when the term of the lease is six months or more, and some jurisdictions do not permit the landlord to charge a rerent levy. The amount charged must be reasonable given the circumstances, and must not exceed the damages that the landlord suffers due to the tenant leaving early.