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.

1. 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:

1. acceptable payment methods (such as bank deposits, cash etc); and;
2. 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.
3. 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

A group of people link up and decide to set up a stokvel where they give each other money on a monthly basis. Everything goes on well with each member in the group receiving R5.000 per month from the 5 members in the group.

The last member in the group receives his share of R25.000 at the end of the stokvel cycle and at face value the coast is clear? Well not so clear as everyone in the group knows that he has received R25.000 cash! When more people know that you have cash, the amount, your location and more personal information then you open up yourself to robbery!

This fraud is affecting many members in South Africa and recently it was imported into Zimbabwe. In Marlborough, Harare a group of friends teamed up to contribute funds and share. The money was in hard currency and as soon as the last person in the group received his share of US$7.000, armed robbers pounced on him!

Joining a stokvel or mukando savings club? Make use of formal banking systems…include cash at your own peril. This scheme is bound to affect many unsuspecting members of the public as they use informal saving schemes.

Take measures to participate with people whose backgrounds you know plus reduce risks through formal banking systems use. Banks have the disadvantage of bank charges but protect you from possible losses from robbers from within the group.