If you are a landlord and planning to rent out a property, it is important to have a written rental agreement. If a disagreement comes up between you and your tenant, having a written agreement can help you get a better outcome in a legal situation.
However, your rental agreement should include some basic and necessary terms.
What Is a Rental Agreement?
A rental agreement is a document that works as a contract between you and your tenant. It sets the rules for the rental. You can write it in a way that fits your needs because you choose what to include in the rental agreement.
Most rental agreements are short-term, such as month-to-month, while lease agreements are usually for longer terms, like six months or a year.
A rental agreement is helpful if you want to make sure your tenant is responsible or if you are renting out a room in the house where you live. A month-to-month agreement is also easier to end than a long-term lease.
How to Write a Rental Agreement
A month-to-month rental agreement should include key details to protect you. It’s a good idea to have a lawyer help you write the agreement, even if it’s only a one-page document. This is especially true if it’s your first time being a landlord.
While you can include many different rules, a basic rental agreement should cover at least these 10 important terms:
- Names and Property Details
Include the full names of all tenants who will live in the property and their contact details. Also include your name and contact information, along with the full address of the rental. If the property doesn’t have a street number, describe it clearly. For example, say “third-floor bedroom” if that is the only bedroom on that floor. - Length of the Rental and How It Can End
Write how long the rental lasts, such as month-to-month or for three months. Start the rental term at the beginning of the month. Also state how much notice you or the tenant must give to end the agreement. Check with a lawyer or your local housing office to learn the specific rules in your area. - Rent and Security Deposit
List the monthly rent and explain how the tenant should pay—by mail, in person, or by phone if you accept credit cards. Include the amount of any late fees, but make sure they are reasonable. Also state the amount of the security deposit. Ask your local housing office for any limits on deposits or fees. - Utilities and Other Inclusions
Say which utilities you will provide, like electricity, gas, heat, or cable. If the tenant is responsible for some or all utilities, mention that too. Be clear about what’s included in the rent. If you provide any furniture or appliances, name them—for example, a stove, refrigerator, bed, or couch. - Pets
Say if pets are allowed, what kinds, how many, and if there is any extra charge. If you want to allow only certain types of pets, state that clearly. You can also say no pets at all. Whatever your rule is, include it in the agreement. - Number of Occupants
List the names of all people who will live in the property. If you do not want more people moving in, say so in the agreement. For example, say that no more than two people may live in the rental. Make it clear that the tenant cannot sublease or transfer the rental to someone else. - Landlord Access for Repairs and Inspections
Explain how much notice you will give before entering the property for non-emergency repairs. Some local rules vary, while some states have the same rules statewide. Check with a lawyer or local housing office. Also state that if the tenant does not allow access for needed repairs, it can lead to ending the agreement. Be clear about what repairs the tenant is responsible for. - Tenant Rules
List the behavior you expect from the tenant. Examples include no illegal activity, no smoking inside, and quiet hours. Say that you can end the agreement if the tenant breaks these rules. Also state that the tenant must pay your legal costs if you have to go to court to enforce the agreement. - Damaged Property
State that the tenant is responsible for any damage beyond normal wear and tear. They should leave the property in a clean condition, often called “broom-clean.” If you have to go to court for property damage, the tenant must pay your legal fees. - Signatures
You and the tenant must sign and date the rental agreement at the bottom.
Having these terms in your rental agreement helps protect you if you need the tenant to move out. It also clearly shows what the tenant is responsible for if they refuse to leave on their own.
