Renting or renting out housing is a common practice nowadays. However, minor disagreements between the landlord and the tenant can escalate into serious conflicts. These disputes may concern rent increases, utility bill calculations, as well as issues of vacating the property and returning the security deposit. To prevent such problems, it is crucial to clearly specify all necessary conditions in the lease agreement in advance. Simply stating the rent amount and the address of the property is not enough.
Conditions that must be specified in the contract
Firstly, it is necessary to clearly state the monthly rent amount and the deadline for payment. The method of payment—whether online or bank transfer—can also be specified. This will eliminate disputes about whether the rent amount was agreed upon.
Secondly, it should be determined in advance when and under what conditions the rent can be increased. If the conditions for an increase are not established, a sudden increase in payment can cause conflict between the parties.
Thirdly, the contract must specify the amount of the deposit or guarantee deposit taken from the tenant upon moving in. It is also necessary to specify when this money will be returned after vacating the property and under what circumstances a portion of this amount may be withheld.
Fourthly, the issue of paying bills for electricity, water, gas, and maintenance can become a source of significant disagreement. The contract must clearly state who is responsible for paying these expenses. If part of the bills will be covered by the landlord and part by the tenant, this mechanism should also be documented.
The fifth point concerns costs for repairs and wear and tear of the property. Minor breakdowns may occur during occupancy, as well as more serious problems with plumbing or electrical wiring. Therefore, it is reasonable to specify in the agreement who is responsible for routine maintenance and who is responsible for major repairs.
The sixth important point is the notice period for vacating the property. It is necessary to specify how many days in advance the tenant must notify the landlord of their intention to move out, and vice versa, how many days the landlord must warn about the need to vacate the premises. These periods must be agreed upon in the contract.
The seventh condition relates to the composition of the occupants. It must be clearly stated whether the house is intended only for the person whose name is listed in the contract or if other family members are allowed to live there. It can also be specified whether the tenant has the right to sublet the property to third parties.
The eighth point is permission for alterations to the residential premises. It should be specified whether the tenant needs the landlord's permission before drilling walls, changing wallpaper, installing permanent fixtures, or making other significant changes. This will help reduce conflicts upon moving out.
The ninth point is compiling an inventory list. If the landlord provides furniture or appliances (fan, air conditioner, water heater, wardrobe, bed, etc.), it is useful to attach a list of this property to the contract. This will allow for easy verification of the condition of the items upon departure.
The tenth point is the term of the lease agreement. It is necessary to clearly state the start and end dates of the agreement. Conditions for extending the contract can also be provided.
It is not enough just to draw up a document
Most importantly, both the landlord and the tenant should carefully study the contract. All key points—rent amount, deposit amount, distribution of utility payments, responsibility for repairs, and notice periods for moving out—must be clearly written down. Furthermore, one should familiarize themselves with local state laws regarding the registration or verification of a lease agreement. Rules may vary in different regions. The clearer the conditions are specified in the agreement, the lower the probability of future disputes. Therefore, landlords and tenants should not resolve important issues only verbally, but must always formalize them in writing in the contract.