5 Important Clauses to Include in Your Tenancy Agreement

A rental or tenancy agreement is a rental contract, usually written, between the owner of a property and a renter who desires to have temporary possession of the property.

A rental agreement is often called a lease, especially when real estate is rented.


In other words, for the landlord to protect his/her property, he/she must have a written tenancy agreement before they can accept an application for tenancy.

This agreement may be as short as one page, but it must include all the important details, for example:

Identify the parties to the agreement and the address of the property you own.
The term of the tenancy and how it ends
Rent and security deposit.
What’s included with the rental.
Policies on pets and other animals
Signatures

Identify the parties to the agreement and the address of the property you own

The parties to the agreement are the landlord and the tenant.

The property address is the address of the property. The address may be the address of your property or the address of your business.

If you are the owner of a business, then you can provide the tenant with the address of that business or residence. The two addresses may be combined.

In the case of a business, the business address is the address where your business is located.

A business owner who also rents a home may use the address of the house as their home address.


Your name and the landlord’s name.
The address of the property.
The phone number.
The email address.

The term of the tenancy and how it ends

The tenancy agreement must specify the length of the tenancy.

This can be a short-term rental, a long-term rental, or an indefinite tenancy.

If the tenancy is long-term, the landlord may want to establish the duration of the tenancy in writing.

Rent and security deposit

The tenant will pay rent to the landlord, usually monthly, but maybe bi-monthly, quarterly, or annually. 

The tenant will pay a security deposit, which is usually equal to one month’s rent.

This is insurance that the landlord will receive back the security deposit if the tenant leaves the property in good condition.

All tenant deposits must be put into a government-approved tenancy deposit scheme (TDP).

What’s included with the rental?

If you provide any utilities, like electricity, gas, heat, and cable, please state that fact.

The tenant is responsible for paying the utilities if they are not included in the lease.

It is important to clearly define what is included and what is not.

Include information about the appliances and furnishings you’re providing, such as dishwashers, stoves, refrigerators, beds, and couches, by name.

The landlord will include items such as the following in the rental agreement:

Utilities: electricity, water, gas, phone.
Trash removal
The cost of renting
refundable security deposit
Utilities paid by the tenant
The rental deposit
Deposit for pets
Cleaning of the property
Smoke alarms

Pets

It is important for landlords and property managers to have a policy for renting with pets in their tenancy agreement.

There are some basic rules for tenants renting with pets.

Landlords need to know what they can do if a pet damages the property, if the pet has a bad habit or if the tenant is a bad pet owner.

Landlords can also offer assistance to pet owners who want to make sure their pet is well-cared for and not causing damage.

In conclusion

You’re protecting yourself and your property by having these terms in your lease in case your tenant wasn’t someone you wanted to rent to.

Rental agreements show what they are responsible for in case they don’t voluntarily move out.


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