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You are here: Home / Business / 6 Key Clauses To Include In A Rental Agreement

6 Key Clauses To Include In A Rental Agreement

February 15, 2022 By Bobby | This article may contain affiliate links. For more information visit our Disclosure

6 Key Clauses To Include In A Rental Agreement

The process of renting a home can be an involved one. Therefore, it’s beneficial for both the tenant and the landlord to have a written document that outlines the terms of their agreement, which will help reduce outside conflict after moving in.

Table of Contents

  • Monthly Rent
  • Utilities
  • Furnishings
  • Condition Of The Property
  • Pets
  • Who Pays What

Monthly Rent

A Rental Agreement should state how much rent is due each month, when it is due and where it should be paid (e.g., mailed to what address). This portion should also include who is responsible for collecting rent from previous tenants if an incoming tenant moves into an already occupied home. Landlords are usually required by law to collect last month’s rent before turning over keys, so they have sufficient funds on hand to pay utilities once new residents move in.

Utilities

The Lease agreement should clearly outline what utilities the tenant is responsible for paying, e.g., water bills, trash removal, gas/electricity etc. The terms should also state whether or not the landlord will pay any of these costs. If they do not cover all expenses (which is very rare), then it’s important to know how the utility bill amount will be divided between the resident(s).

Furnishings

Tenants moving into an apartment may need to provide certain items like lamps, tables and chairs if none are included in the rental inventory. It’s a good idea for both parties to detail anything that goes with the rental unit upon move-in because this helps avoid any confusion over appliances or other fixtures being removed by either party later on.

Condition Of The Property

It’s a good idea to outline the level of cleanliness expected from a tenant and the landlord maintenance responsibilities. Frequently, a landlord will provide a cleaning service for new residents before they move in and deduct the cost from their security deposit at move out if all expectations are met. However, tenants can avoid this extra expense by simply keeping things tidy during their stay. In addition to stains or spills on carpet or wallpaper, it’s very important to list any damage done to walls or other structures because that can lead to an increase in monthly rent for future residents based on depreciation.

Pets

Another point that should be included in a Rental Agreement is whether animals are in the property and under what conditions they may be kept there (if any). Some cities or states require landlords to allow pets, especially if the tenant has a disability. Along with designating an area for pet habitats, it’s important to note whether pet-related damage will result in extra fees.

Who Pays What

Finally, the terms should clearly state who is responsible for paying what utilities. For example, some shared living situations include bills that are divided based on the square footage of the unit occupied by each tenant. Other agreements detail how many occupants are allowed per given square feet so their combined usage can be estimated accordingly and billed accordingly. It’s also important to address which resident is responsible for taking out the trash and what happens if there are any problems with the property while they’re living there (e.g., a broken faucet).

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