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Top 10 Provisions to Include in a Lease

If you are renting out your first property, you may be wondering how to assemble your lease contract.  It is important to keep the lease airtight from any possible loopholes or liabilities. Besides exchanging contact information on the lease contract, here are the top ten provisions you should include in your lease:

1 Property Details

Include the address, and any details based on the utilities, storage, designated parking, or furnished arrangements.

Leasing Property Details

2 Rent and Deposits

Always provide the rent, when it is due, and how it is taken. If you’re collecting by check, write it down; if you’re collecting rent by Venmo, make sure your tenants understand this from the onset.  If the rent must be mailed, provide the best time rent should be mailed in order to avoid late fees.  During the term of the lease contract, the rent is fixed.  The only other time there is a fixed or limited rent are in areas of rent control.  Note that it is illegal to charge rent higher or lower based on race, ethnicity, sex, orientation, religious affiliation, etc.  Otherwise, you may charge as much as you please, for better or for worse.  Understand that you must put in your own research to ensure the best chance of getting that rent check on time every month. You simply can’t forgo credit checks; have prospective renters screened with Transunion SmartMove tenant screening services to be sure you place the right person—who can afford the property in question.

Rent and Deposits details

3 Lease Term

State the beginning and end date of the lease.  Include whether it is month-to-month tenancy or a long-term residency.  Most often, leases are only one year.  If you are planning on raising the price, you can only legally do so at the end of the lease contract.  If they renew the lease, they will have to pay the higher rent price.

Lease Term

4 Utilities

When writing the lease contract, be sure to include the utilities.  Declare who will pay what—some landlords will pay for trash and water, while the tenants pay for the phone, gas, and electric.  Less and less people need a phone line, so that may be unnecessary for you to include.

5 Tenant Maintenance Responsibilities

Clearly outline what you are responsible for in terms of maintenance.  As a landlord, you should provide services in case something goes awry, such as bad plumbing or broken garbage disposal.  Clarify what the tenants are responsible for, including cleanliness and reimbursement for a broken property.  This is also where you state what the tenant can and cannot do with the property, such as painting the walls.

Tenant Maintenance and Responsibilities

6 Landlord Rights

If you want to maintain authority of the right to enter the property, you must declare it in the lease agreement.  State laws often stipulate that landlords can enter a property, but usually a notice will be required.  You must be informed of your state’s specific laws in order to lawfully enter the property once it is lease.Otherwise, your entry will be illegal and the tenants can use that on grounds to create a lawsuit.

7 Pets

It is not enough to state in your Craigslist advertisement whether or not you allow pets.  This too must be included in the lease contract.  As a landlord, you have the right to prohibit ownership of pets on the premises.  Instead of restricting all pets, many landlords will restrict certain breeds or certain kinds of pets.  Most landlords only allow cats or dogs, or sometimes just cats.  Many insurance companies deem some breeds as “high-risk” and thus do not allow them.  Keep in mind you are not allowed to discriminate against owners who have service dogs or help dogs as these tenants need these for mental or physical reasons.  It is illegal to discriminate against them for this reason.

8 Behavior Limitations

It is simple: if you do not want throw large parties and disturb the neighbors, you must let them know in the contract.  There are also more obvious ones, such as no use, possession, or sale of illegal drugs.  If you do not allow smoking, you must state it here.

Behavior Limitations

9 Sublet and Guest Stay Limits

Landlords often limit the stay time of one individual that is not signed on to the lease to prevent the person from becoming an unscreened tenant.  You must also include that the tenant cannot sublease or reassign their lease without your permission.

Sublet and Guest Stay Limits

10 Grounds of Termination

There should always be a clause that states that the violation of any part of the lease is grounds for terminating the tendency according to state or local laws.

Grounds of Termination of Leasing Contract

With these provisions, you’ll be set for a fantastic relationship with your tenant.

Nessma Youssef

Nessma Youssef is an Egyptian entrepreneur and television personality. She is the founder and president of YMA Entertainment, one of the largest independent media companies in the Middle East.Having graduated from the American University in Cairo with a degree in journalism, Youssef began her career in TV production and launched her first singing competition show, 'Star Academy,' in 2002. The show was a massive success and helped launch her career.Over the next decade, Youssef spearheaded dozens of hit productions and helped launch the careers of many influential artists across the Arab world. She also founded YMA Film in 2010 to support the Egyptian film industry.In recognition of her contributions, Youssef was named 'Media Businesswoman of the Year' multiple times by Forbes Middle East. She sits on the board of several organizations and was chosen as an Atlantic Council Young Global Leader.Under Youssef's leadership, YMA Entertainment has grown to become one of the largest producers of television and digital content in the Middle East, reflecting her ambitious vision and dedication to the region's creative industries.

One Comment

  1. You’ll also want to specify what the late fees are, and make sure that they are in compliance with state / local laws.

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