The main purpose of using the rental agreement is to make the both parties to follow the conditions and terms mentioned in it, it is highly practical document which has got the legal value in business and is being used in almost every kind of business. It tells the time duration for which the property has been given on rent, the amount of money which the person will pay as a rent and the date of the payment is also mentioned in it. You can design the rental agreement according to your needs and requirements. The length of the rental agreement also varies. It can be long enough occupying 5 pages and can be quite short which could only be written on one page.
There are many benefits of using the rental agreement in the written form however; the usefulness of the rental agreement also depends on how you design it. The basic terms related to the tenancy should be covered by the rental agreement. Some items are so important to be included in the agreement, which are given below:
Names of all the tenants should be written in the rental agreement. This makes the tenant to understand the responsibility of taking care of the property in all the situations. Out of all the people using the property, the name of one person who will be responsible to pay the rent should be written at the top. If the tenant violates the terms and conditions of the agreement, than you have the right to cancel the rental agreement.
Here is a good looking Rental Agreement Template created by WordTemplates.org,
The agreement should clearly tell the time duration of the tenancy. Mentioning the duration of the tenancy is done for the security of the landlord. Usually the rental agreement is written for several years or months. There are also some agreements in which no specific duration is mentioned. In such agreements, the termination of the agreement is made to depend on the mutual decision of the tenant and the landlord.
Terms of the tenancy should be mentioned in clear words in the agreement. usually, the rent payment is increased every year. The percentage of the increment should be mentioned in the agreement. Those conditions under which the landlord can cancel the agreement should also be mentioned in the agreement. The payment methods which are acceptable, the fine on late payment of money and in the case if the check bounces should be mentioned in the agreement.
There should be separate clause in the agreement which includes the responsibilities of the tenant. The maintenance and the repair of the property should be the responsibility of the tenant and it is good to make the tenant aware of it through the agreement so that he can know about his duties.
There should be a clarification of the access rights of the landlord. This will never let the tenant to violate any rules related to the rental agreement. At the end of the agreement, make sure that both tenant and the landlord have signed the agreement.