The Importance of Residential Lease Agreement – The residential lease agreement or usually called House Lease Agreement is a form or contract letter that made between landlord and his tenant about renting house or apartment. This agreement has the legal binding. This document contains the identity of landlord and tenant, descriptions of property, requirements, rights, obligations, payment, and regulations that should be obeyed by landlord and tenant.
The lease agreement has the legal binding than a verbal lease agreement. Why? Because that agreement is made by writing and has the legal consequence. It’s different from a verbal lease; the verbal lease agreement hasn’t the legal binding and difficult to obey. If the problems arise, and the landlord and tenant bring out the case to the court, the court has to interpret the evidence that submitted from both.
The function of making lease agreement is to avoid misinterpretation between landlord and tenant. Besides that, it’s important to put the terms of the agreement. When someday there are any problems happen, the parties can review the agreement and decide the best solution for them. The written agreement also ease the court in the evidentiary system and find the fairest solution.
The Terms That Should Include in Residential Lease Agreement.
In general, the parts of residential lease agreement consists of the description of the property, the parties identity, leasing duration, lease renewal, and cost. Some important terms should pay attention to you when you decide to rent a house or apartment.
- The names of all tenants
Making the lease agreement between two parties also contain the names of all tenants. In the United States, the tenants that married or unmarried couple should register themselves as the tenant. This provision means that each tenant has the responsibility for all terms that were written in the lease agreement. This provision is legally binding for all tenants at one house or apartment. If one of the tenants violate the term, the leasing company can dismiss the tenancy period to all tenants.
- The limit of occupancy
The limit of your occupancy should specify and mention on the residential lease agreement. It’s important to you because it’s your right. This provision gives the guarantee to you to do an action to evict everyone that doing their activities in your occupation without your permitted.
- Duration of tenancy
The lease agreement form should state the duration of the tenancy. The lease agreement usually run month by month or year to year and mention the renewal system by self, except it ended by landlord or tenant. You have to give a notice about this case. Because it may sound trivial, but this provision has the legal consequence to you about how long you have the authority to occupy the house or apartment.
The rental agreement should mention the amount of rental cost. The goal of this term is to prevent the problems or confusion between tenant and landlord. If needed, you can submit the details of costs, include the payment method, the late fees if the cost not paid on time, and there’s a grace time or not.
- The illegal and restrictions activity
On the residential lease agreement should specify explain the illegal and restriction activity of tenants. It’s important to prevent and minimize the trouble among tenants, or between landlord and tenant. Besides that, it’s possible to prevent the property damage because of excessive noise, disruptive of residents behavior like consuming the drug or alcohol.
For the last, the residential leasing is very important to give legal protection for the society in general and the landlord and tenant in specific. The residential lease agreement also as a state concern form to give the best service for society.