Leasing out property requires a written rental agreement that’s signed by both the property owner and renter. It serves as protection in case of disputes. Accepting payment from a tenant may seal the deal, but it doesn’t stop there. You still need to lay down some ground rules.
If you know how to write a rental agreement, you will be able to protect yourself from property damage and lost income. A best practice is to draft and execute your contracts electronically. This way, you don’t have to write everything on paper.
Let’s dive in.
This Post Will Talk About the Following Topics
What Is a Rental or Lease Agreement?
A lease or rental agreement refers to a legally binding contract between a property owner and a tenant. If you own property and lease it to somebody in exchange for payment, you’ll need to agree on these specifics:
- The monthly rate
- Security deposits
- Late payment fees
- Payment schedule
- Payment method
- The length of the lease period
- The tenant’s rights and obligations
- The property owner’s rights and obligations
- The terms for lease termination and renewal
Another thing to remember is that you don’t need to write a contract on paper. You can use online tools to draft and execute a rental agreement. This way, it will be easier to send your documents for signing. You can have your tenants sign them online, which is a great way to speed up your negotiations.
How to Write a Basic Rental Agreement
If you’re all set to create your rental agreement, here’s what you need to do:
- Give your lease contract a title. Keep it short, but direct to the point. For example, you can write down “house rental agreement” or “condo lease agreement.”
- Next, write a short overview of what the document is all about.
- After this, provide the necessary details for all parties involved, including information about your property (address and ZIP code).
- State the terms of the lease or rental period. You should also include a clause for extension, renewal, and termination.
- State the exact rental amount and terms of payment. Remember to include a clause that lists the conditions for reservations and cancellations. You should also indicate the penalty fee for late payments.
- Remember to write down the specifics about who is responsible for paying for utilities like water, electricity, and the internet.
- Outline the rest of your tenant’s rights and responsibilities.
- Include an amendment clause and a governing law clause.
- Add the signature line right below the printed name of the agreeing party. Do not forget to insert a date field right below the signature line, which helps prove that the agreement has been signed on time.
Use a rental agreement template on Fill
If you want to create a lease contract fast, you can use our templates for rental contract agreements. Simply follow these steps:
- Go to fillhq.com and sign in using your existing account. If not, you can sign up for a free account or upgrade to Pro by paying a monthly or yearly subscription.
- From the web dashboard, click Start Now.
- Select Sign > Request Signature.
- Instead of uploading the document, click the tab that says Template Gallery, then search for “rental agreement.”
- Click Use Template to select the template that you want to use.
- Fill out the required details and set a due date for signing. You can also require ID verification for your tenant.
- Click Continue, then check if the details are accurate. You can also modify the template according to your needs.
- Remember to include a signature field for each signer. If there’s none, drag the signature field from the left panel and place it in the appropriate section.
- Preview the document. Once everything is all set, click Next.
As the property owner, you’ll have to be the first one to sign the document. After affixing your signature, our tool automatically sends the signature request to your tenant. You can track the status of your request in real time using your phone, tablet, or laptop.
What Is an Indemnity Agreement on a Rental Property?
Simply put, an indemnity agreement helps ensure that a tenant will uphold their part of the contract. If they fail to do so, they have the sole responsibility to compensate you for all the property damages and contract violations.
For example, if a tenant breaks a fixture, they are legally liable to pay for its repair or replacement.
If there’s a security deposit, the property owner can use it to cover the full or partial amount of damages incurred. The tenant must then pay the rest of the penalties.
How to Terminate a Lease Agreement
Part of running a rental property involves dealing with the early termination of lease agreements. When this happens, you must be prepared to cater to your tenants’ requests, provided they do it legally. They need to submit a breaking lease early letter that details the reason for their termination.
To avoid penalties and fines, tenants who want to move out before the end of their contract must submit the early lease termination letter on time.
Speed Up Your Property Renting Process with Fill
With Fill, you no longer have to worry about drafting rental agreements. Instead of drafting a contract from scratch, simply select a template that suits your requirements. Whether it’s a house rental, condo rental, or a commercial property, you can rely on our online tool for fast documentation.
Our cloud-based app works on mobile and desktop, which makes it easier for you to monitor your rental contracts. You can also feel at ease knowing that only authorized users can access your legally binding lease documents. With Fill’s robust security measures, you can easily protect your contracts from hacking and online scams.