When renters wish to make agreements with property owners to occupy a property, they enter into landlord and tenant agreements. The purpose of the agreement is to protect both the landlord and the tenant form future disputes regarding the rental of the property. Terms such as the amount or rent to be paid, who is responsible for maintenance, what constitutes a default, and the length of the rental agreement are common terms found in landlord and tenant agreements. An agreement may be for a monthly rental, a yearly rental, or for a longer length of time, depending on the agreement between the parties.
The first consideration when drafting landlord and tenant agreements is the length of time the property is to be rented. The parties may agree to any length of time they choose, but a common rental term for a residential property is one year. Commercial leases frequently anticipate a longer occupancy by the tenant and therefore are generally for two years or more.
Another important term included in landlord and tenant agreements is the amount of monthly rent to be paid and the initial deposit amount. Residential lease agreements commonly require a deposit amount equal to one month's rent. In addition, the day of the month when the rent is due as well as any grace period allowed under the agreement should be included.
Responsibility for repairs and maintenance should be addressed in all landlord and tenant agreements. Residential agreements often place the responsibility for major repairs on the landlord. Commercial lease agreements may require the tenant to take care of routine maintenance and sometimes even major repairs.
Who will be living on the property in the case of a residential lease, or for what purpose the property will be used in the case of a commercial lease, are also terms included in a lease agreement. In commercial landlord and tenant agreements, the exact type and nature of the business the tenant intends to operate on the property will be included in the agreement. In a residential lease agreement, the issues such as whether or not the tenant may sub-lease the premises or whether pets are allowed are often addressed.
Landlord and tenant agreements will also include default provisions. What constitutes a default by either party should be made clear in the agreement. In addition, the procedures and remedies in the event either party is in default should be included.
