A lease is an agreement between two parties for use of an asset. There are certain things even the most basic lease must include. A lease agreement is an essential document between landlord and tenant. All leases are not created equal. There are certain basics a good rental contract must include. This article will teach you the seven most basic clauses your lease agreement must include.
- Identify Landlord and Tenants
Every lease agreement must identify who the contract is between. In the case of a lease for rental property, this agreement is between the landlord, and/or the landlord’s agent, and the tenants that will be occupying the property. All tenants over the age of 18 should be named on the lease. The address of each party should also be included.
- Rent
A lease agreement should specify the amount of rent, when it is due (typically, the first of the month), and how it is to be paid, such as by mail to your office. To avoid disputes a lease agreement should typically, spell out details such as:
- acceptable payment methods (such as bank deposits, cash etc); and;
- whether late fees will be due if rent is not paid on time, the amount of the fee, and whether there is any grace period.
- Any Deposits and Fees
Security deposits are one of the most commonly disputed items between landlord and tenant, so in addition to defining the amount, lease agreements should also include how the deposit can be used, any non-refundable fees (such as cleaning fees), and how the deposit will be returned after the tenant moves out.
- Description of the property
The lease agreement should have a description of the property controlled by the lease agreement. It may be as simple as the address and apartment number but it must be identified or the agreement cannot be enforced.
- Lease dates and termination
The start and end of the lease should be well captured in the agreement inclusive of how the agreement will be terminated by both parties
- Disputes resolution
A lease should clearly provide for what parties should do in the event that there is a dispute. It is advised for parties to attempt to resolve disputes on their own before opting for litigation or arbitration. This is more cheaper and more efficient.
- Breach
Often times when parties sign an agreement one of the parties can refuse/neglect to perform some obligations. Breach occurs when a party to a contract fails to fulfill its obligation(s) as described in the contract. A breach clause should provide for what happens when either party breaches the contract.
Background of author
Namatirai Muzarakuza is a holder of a Bachelor of Laws (LLB) from the University of Zimbabwe and a Post- Grad in Corporate Governance and Strategic Leadership. She has over 8 years’ experience in private practice, banking and finance as well as corporate law. Her contact details are namaruzvidzo@gmail.com
