Residential Lease Agreement
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Frequently Asked Questions
Why is customizing the lease according to location important?
It’s important to note, however, that standardized agreements don’t always fit the situation and they may or may not be customized to meet your state and local requirements.
Customizing the lease to account for location allows you to have a stronger legal contract since each jurisdiction has their own set of rules and regulations.
While Docscreator makes every effort to offer suggestions and guidelines to assist you in creating your agreement, ultimately it is your responsibility to ensure that you comply with all the requirements of your jurisdiction, including any county or municipal laws.
While Docscreator makes every effort to offer suggestions and guidelines to assist you in creating your agreement, ultimately it is your responsibility to ensure that you comply with all the requirements of your jurisdiction, including any county or municipal laws.
Difference between the Standard and Detailed agreements?
The Standard agreement is short and summarized, and it has all the vital terms for creating a legally binding agreement.
The Detailed agreement includes clauses dealing with:
The Detailed agreement includes clauses dealing with:
- home business use
- tenant having a guarantor
- whether property is furnished or not
- which party is responsible for maintenance.
- use of a property etc...
What are the types of tenancies?
Ends on a set date (Fixed Term) - A fixed-term tenancy for some fixed period of time. It has a definite beginning date and a definite ending date. and doesn't usually require notice to terminate the lease.
A fixed term lease provides certainty since the terms, including rent, cannot be changed for the agreed term unless the Landlord specifically reserves the right in the Lease and the tenant agrees to the changes.
Has no set end date (Automatic Renewal) - A lease that will renew automatically year to year, month to month, or week to week, is an estate that exists for some period of time determined by the term of the payment of rent. This type of lease will continue until a party chooses to terminate the lease.
To terminate the automatic renewing lease, the Landlord or Tenant must give notice of their intention to leave as required by law. If the tenant fails to move out at the end of the notice period, the Landlord can start eviction proceedings against them.
The Landlord can also raise the rent or change the terms of the automatic renewing lease by providing the tenant with proper notice as required by law.
A fixed term lease provides certainty since the terms, including rent, cannot be changed for the agreed term unless the Landlord specifically reserves the right in the Lease and the tenant agrees to the changes.
Has no set end date (Automatic Renewal) - A lease that will renew automatically year to year, month to month, or week to week, is an estate that exists for some period of time determined by the term of the payment of rent. This type of lease will continue until a party chooses to terminate the lease.
To terminate the automatic renewing lease, the Landlord or Tenant must give notice of their intention to leave as required by law. If the tenant fails to move out at the end of the notice period, the Landlord can start eviction proceedings against them.
The Landlord can also raise the rent or change the terms of the automatic renewing lease by providing the tenant with proper notice as required by law.
Why does it matter whether the lease ends on a set end date?
If the lease term ends on a set end date, you will be entering into a fixed term lease.
If the lease does not end on a set end date, you will be entering into an automatically renewing lease which will continue to renew until one party terminates the lease.
If the lease does not end on a set end date, you will be entering into an automatically renewing lease which will continue to renew until one party terminates the lease.
What happens if the tenant leaves early?
With a fixed term lease, the tenant is responsible for paying rent for the entire length of the lease if he leaves early. However, there may be an exception if the tenancy is located in a jurisdiction which allows a tenant to end a fixed term lease early by giving notice.
If the Landlord is able to re-rent the property before the end of the lease of the breaching tenant, the Tenant is no longer required to pay rent since the Landlord cannot collect double rent.
If the Landlord is able to re-rent the property before the end of the lease of the breaching tenant, the Tenant is no longer required to pay rent since the Landlord cannot collect double rent.
Can lease terms be changed later?
Generally, the Landlord may not change the terms of the lease during its term.
If the Landlord changes the terms of the lease for the next period by giving appropriate notice, the tenant has two options. The tenant may accept the changes and continue to live at the property or may give proper statutory notice to terminate the lease.
If the Landlord changes the terms of the lease for the next period by giving appropriate notice, the tenant has two options. The tenant may accept the changes and continue to live at the property or may give proper statutory notice to terminate the lease.
Can I save my answers and return later?
Yes, you can return at any time to continue your progress.You will find your filled data.
What are furnishings?
Furnishings are furniture, appliances and other movable items such as curtains or carpets which add to the comfort and convenience of the home.
Who is the Landlord?
The Landlord refers to a person who owns property and allows another person(Tenant) to use it for a fee.
What is a property manager?
The property manager, if there is one at all, deals with the tenant and manages the rental property on behalf of the Landlord in return for a fee.
Tenant vs. occupant
Tenants sign a Lease containing terms that bind them to certain obligations under the lease. The lease agreement is between the landlord and tenant only.
Occupants are authorized to reside in the property with the landlord's permission.
Occupants are authorized to reside in the property with the landlord's permission.
What is a guarantor?
A guarantor is a 3rd party who agrees to compensate the Landlord for any losses should the Tenant fail to pay rent or otherwise break the Lease. For this reason, a guarantor cannot be one of the tenants.
What is an option to purchase?
An option to purchase gives a tenant the ability to purchase the property at any time during the Lease terms for a previously agreed upon price.
An option to purchase helps protect the parties from real estate market fluctuations, allows tenants to purchase the home when their credit and finances are in a stronger position, and may enable the Landlord to charge a higher rate of rent.
An option to purchase helps protect the parties from real estate market fluctuations, allows tenants to purchase the home when their credit and finances are in a stronger position, and may enable the Landlord to charge a higher rate of rent.
How does an option to purchase work?
An option to purchase gives the tenant a certain amount of time to exercise the option to purchase the property. If the tenant takes advantage of the option, the tenant’s option deposit will go towards the purchase price of the property.
If the Tenant does not take advantage of the option, the Landlord will get to keep the deposit and neither party will have any rights or claims against each other concerning the option.
If the Tenant does not take advantage of the option, the Landlord will get to keep the deposit and neither party will have any rights or claims against each other concerning the option.
What is an option fee or option deposit?
An option fee and/or option deposit is paid by the tenant at the beginning of the term to have a right to purchase the property at a certain price during a certain time period. If the tenant proceeds with the purchase, the option fee/deposit is applied to the purchase price. If the tenant does not exercise its option, then the Landlord may keep the option fee, but would return any option deposit.
How long should the tenant have to close the purchase after exercising the option?
The tenant should be allowed no less than 30 days to close the purchase after the option has been exercised. Since disclosure documents are usually provided within 15 days of exercise, the tenant will be left with 15 days to review those documents.
Can I specify a notice period less than the legal minimum for my state?
You can't specify notice period less than the legal minimum for your state. You can only specify a number of days equal to or greater, than your state’s legally required minimum.
Are there restrictions on allowing home-based businesses?
The Property must be zoned for home-based businesses and permit the type of business that the tenant wishes to operate.
Some municipalities will also require that the tenant obtain a business permit to operate out of the Property.
Some municipalities will also require that the tenant obtain a business permit to operate out of the Property.
What is a security deposit?
A security deposit is a sum, usually in the form of money,that the tenant pays to the Landlord to guarantee that the tenant will comply with all the terms under the lease. The amount is usually based on the monthly rent.
The Landlord holds the security deposit in trust for the term of the lease to ensure the tenant doesn't default on the terms or otherwise damage the property (normal wear and tear excluded). If the tenant damages the property or fails to pay rent, the Landlord is entitled to recover the unpaid rent and or/damage amount from that security deposit.
The Landlord holds the security deposit in trust for the term of the lease to ensure the tenant doesn't default on the terms or otherwise damage the property (normal wear and tear excluded). If the tenant damages the property or fails to pay rent, the Landlord is entitled to recover the unpaid rent and or/damage amount from that security deposit.
What does a security deposit cover?
Depending upon your state, the Landlord may require a security deposit to ensure that the tenant doesn’t damage the property, fail to pay rent, or otherwise break the lease agreement.
Pet Fee vs. Pet Deposit?
Pet Fee - a one-time non-refundable fee charged to the tenant by the landlord for being allowed to keep a pet at the property.
Pet Deposit - a deposit paid by the tenant and held by the Landlord for any potential damage that the pet may do to the property. It is separate from the damage or security deposit paid by the tenant. If no pet damage is done to the property when the lease ends, the pet deposit will be refunded back fully to the tenant.
There are many local variations in regards to pets, including what kinds of monetary charges are allowed. Make sure to check your local laws regarding what kinds of charges your jurisdiction allows, as well as any limits on the amount of the charge.
Pet Deposit - a deposit paid by the tenant and held by the Landlord for any potential damage that the pet may do to the property. It is separate from the damage or security deposit paid by the tenant. If no pet damage is done to the property when the lease ends, the pet deposit will be refunded back fully to the tenant.
There are many local variations in regards to pets, including what kinds of monetary charges are allowed. Make sure to check your local laws regarding what kinds of charges your jurisdiction allows, as well as any limits on the amount of the charge.
When do late payment charges start?
A tenant’s rent should be due on the same date each month. You are in breach immediately after the due date for payment has arrived. A grace period doesn't allow the tenant to pay rent late nor does it prevent a landlord from giving a notice to terminate for late rent.
A grace period does affect when late payment fees can be charged. Late payment charges will only apply after over the grace period set by the Lease or that which local law requires.
A grace period does affect when late payment fees can be charged. Late payment charges will only apply after over the grace period set by the Lease or that which local law requires.
What is a reasonable late payment fee?
A late fee should vary based on the price of the rental. Certain states will require you to charge no more than a certain percentage of the monthly rent as a late fee.
Why does the landlord need to give notice before entering the property?
The landlord usually does not have the right to enter the property unless there is an emergency such as a fire or gas leak. As long as the landlord gives proper notice (as required by statute), the tenant cannot refuse entry to the landlord.
Typically, a written 24 to 48 hours' notice containing the time and purpose of the entry is considered as reasonable notice by the landlord to enter the property outside of emergencies.
Typically, a written 24 to 48 hours' notice containing the time and purpose of the entry is considered as reasonable notice by the landlord to enter the property outside of emergencies.
Why does the landlord need to give notice before terminating the lease?
In addition to being a fair practice, most jurisdictions have a minimum notice period required by law. The lease can specify a notice period longer than the legal minimum, but it cannot specify a period shorter than the legal minimum.
What does it mean to end the lease "without cause"?
If the landlord or tenant tries to end the lease agreement for a reason other than tenant not paying rent or violating one of the lease terms, this is terminating the lease without cause.
What is the difference between utility costs and maintenance?
The responsibility for performing or paying the costs relating to such things as lawn maintenance or yard work would be normally covered under the maintenance section.
What is a fixture?
A fixture is any item that is attached to the property in such a way that removing it could cause damage. For example, carpets, chandeliers, or any other item that has been bolted, nailed, screwed, or wired into the property.
What are Landlord Improvements?
Landlord improvements are extra work done to the property by the landlord that enhances the property usually before the tenant moves in. It can include something simple like putting on a new coat of paint to complex renovations of the property.
What are signing incentives?
Signing incentives are bonuses the landlord gives to the tenant, typically for signing a fixed term lease. They may include free month's rent, or a rent reduction for the initial months of the fixed term tenancy. If the tenant breaches the lease, these incentives may have to be paid back to the landlord.
How to describe improvements?
You should be specific as to what is to be done, the quality of materials and workmanship as well as when it needs to be completed.
What are tenant improvements?
Tenant improvements are extra work done to the property by the tenant that enhances the property. It can include something simple like putting on a new coat of paint to complex renovations of the property.
What is the address for notice?
The Address for Notice is where the other party can send notices both during and after the lease is over.
During the term of the lease, the tenant's address for service is at the property address of the leased property. The tenant needs to provide an address that the landlord can send notices after the tenancy is over. The landlord and tenant can change their address at any time.
During the term of the lease, the tenant's address for service is at the property address of the leased property. The tenant needs to provide an address that the landlord can send notices after the tenancy is over. The landlord and tenant can change their address at any time.
Why does it matter what year the Property was built?
If the house was built before 1979, then the Landlord needs to do a lead-based paint disclosure.
If the house was built before 1981, then the Landlord needs to do an asbestos disclosure.
If the house was built before 1981, then the Landlord needs to do an asbestos disclosure.
What are the lead disclosure requirements?
Except where the Property was built after 1978 or in certain other limited circumstances, Federal Law (Residential Lead-Based Paint Hazard Reduction Act of 1992, 42 U.S.C. 4852d ) requires that the Landlord provide the tenant the pamphlet Protect Your Family from Lead in Your Home (EPA - 747-K-99-001) or an equivalent pamphlet that has been approved for use in your state by the Environmental Protection Agency. It also requires the landlord to disclose certain information regarding lead-based paint and lead-based paint hazards that might exist in the leased property.
Agent's obligations regarding lead hazards
The Landlord's agent has an obligation to have informed the Landlord of its obligations under 42 U.S.C. 4852(d) regarding lead-based paint hazards and to ensure compliance with those requirements.
What are the asbestos disclosure requirements?
As the United States hasn't banned all asbestos use, tenants don't have a right to an asbestos-free home. However, tenants have the right to know whether asbestos is present. As almost all states recognize an "implied warranty of habitability", Landlords must properly contain all asbestos risks so tenants are provided with a reasonably safe home.
Under regulations issued by the U.S. Occupational Health and Safety Administration (OSHA) in 1981, landlords must disclose whether asbestos is present. This information should be provided in the lease.
OSHA's standards presume that buildings constructed before 1981 have asbestos-containing materials. As a result, building owners are responsible for locating where asbestos is located and how much is present. Landlords must check and follow standards for monitoring levels and containing asbestos. Landlords must also handle asbestos properly during repairs and renovations.
Under regulations issued by the U.S. Occupational Health and Safety Administration (OSHA) in 1981, landlords must disclose whether asbestos is present. This information should be provided in the lease.
OSHA's standards presume that buildings constructed before 1981 have asbestos-containing materials. As a result, building owners are responsible for locating where asbestos is located and how much is present. Landlords must check and follow standards for monitoring levels and containing asbestos. Landlords must also handle asbestos properly during repairs and renovations.
Mediation vs arbitration
Mediation is a method of resolving disputes where a neutral 3rd party mediator will attempt to facilitate an agreement between the landlord and tenant. The parties are not bound by the mediator’s decision.
Arbitration, on the other hand, involves a neutral 3rd party who will resolve the dispute and the parties are bound by the arbitrator’s decision.
Arbitration, on the other hand, involves a neutral 3rd party who will resolve the dispute and the parties are bound by the arbitrator’s decision.
What is an inspection report?
An inspection report is a written record of any existing damage observed during a walkthrough of the property by the tenant and landlord. Inspection reports need to be completed at the beginning as well as at the end of the tenancy.
Some jurisdictions require the use of an inspection report before the landlord can make a claim against the security deposit for property damage. LawDepot offers an inspection report which can be accessed for free after you complete your Residential Lease.
Some jurisdictions require the use of an inspection report before the landlord can make a claim against the security deposit for property damage. LawDepot offers an inspection report which can be accessed for free after you complete your Residential Lease.
What is a re-rent charge?
A re-rent charge is typically used in leases at least 6 months long to compensate the landlord for the cost of finding another tenant.
A re-rent charge must be reasonable and should be closely tied to the estimated damages the landlord will suffer since many jurisdictions have restrictions on re-rent charges.
A re-rent charge must be reasonable and should be closely tied to the estimated damages the landlord will suffer since many jurisdictions have restrictions on re-rent charges.
What is the difference between an assignment and a sublease?
Assignments and subleases both occur when the tenant gives his/her rights under the lease to a third party.
Assignment is a total transfer of those rights while a sublease is transferring only a part of those rights (such as a shorter length of time or only part of the property).
Assignment is a total transfer of those rights while a sublease is transferring only a part of those rights (such as a shorter length of time or only part of the property).
What is an N.S.F. check?
"N.S.F." stands for "not sufficient funds". It means that a check does not have enough money in the associated bank account to be cashed.
When should I include an additional clause?
You should include an additional clause if there are any terms or issues unique to your situation that have not been addressed in the questionnaire.
How should I write my clause?
In order to reduce confusion, write your clauses with plain language and limit them to one paragraph in length. Also, use any predefined terms such as Tenant, Property, Landlord, etc. in your clauses.