Successful landlords can usually agree on one thing – a lease or rental agreement is key to a smooth landlording experience. You can use it to convey all important and necessary information to a tenant.
As a result, this can help minimize any grey areas that can lead to potential conflicts or misunderstandings. With that in mind, the following are important things to include in a rental agreement.
Important Tenant Information
A rental agreement is a legally binding document between a landlord and tenant. Make sure to include the names of all adult tenants living on the property. Doing so makes the lease legally enforceable on them.
Including their information legally gives you the right to hold each tenant on the lease liable for any lease violations. For instance, you may be able to demand unpaid rent from any of the tenants listed under the lease.
Limits on Who Occupies the Property
Limiting who occupies the property allows you to minimize any property damages or unwanted activity on the premises.
The lease should specifically mention who can occupy the property. That is, the tenants whose names appear on the rental agreement. Doing so guarantees you the right to determine who can live on the property.
Limiting who can occupy your property can also help you combat the issue of unauthorized guests, such as friends or relatives.
Ensure that you include this as a clause in your rental agreement, and clearly outline what the consequences of a lease violation are.
The Length of the Lease
A rental agreement usually has a definite start and end date. Periodic short-term leases run anywhere from week-to-week, to month-to-month, to quarter-to-quarter. These automatically renew after every lease period until either party decides to end it by serving the other party a proper notice.
Fixed-term leases, on the other hand, usually last between 6 months and a year. Regardless of the rental agreement, specify when exactly the rent term will be starting and ending to avoid holdover issues with a tenant.
Details About the Rent
Solely mentioning the amount owed in rent every month isn’t enough information for a lease agreement. You should specify other relevant details, such as:
- The rent due date.
- The grace period.
- The late fees incurred upon failure of timely payment.
- Where to submit the rent payment.
- Acceptable payment methods.
- Penalties for any bounced checks.
Security Deposits
Security deposits are intended to protect a landlord’s property in the event that a tenant has moved out without paying rent. It can also be used to pay for damages or lost property upon a tenant’s departure.
To prevent issues when returning a tenant’s security deposit, ensure your lease agreement is clear on several things:
- The Security Deposit Amount: Texas law doesn’t impose any limits on the amount a landlord can charge a tenant for a security deposit.
- Legitimate Reasons for Security Deposit Deductions: In Texas, such reasons include unpaid rent, the cost of professional cleaning services, and the cost of fixing damage beyond normal wear and tear.
- The Date the Deposit Will Be Returned to a Tenant: Texas law requires that landlords do so within 30 days of the tenant moving out. The only exception here is if the tenant fails to provide you with their forwarding address.
- The Manner in Which the Security Deposit Will Be Returned: Detail how you’ll return the deposit, minus any allowable deductions, to the tenant.
Policies Regarding Repairs and Maintenance
Make sure to be as detailed and concise as possible when drafting this clause in the rental agreement. Specifically outline what each party is responsible for regarding repairs and maintenance.
Under the Texas Landlord-Tenant Law, a landlord is responsible for the property’s overall habitability. You must, among other things, provide the tenant with the following:
- Running hot and cold water.
- Working smoke and carbon monoxide detectors.
- A pest-free home.
You must also conduct property repairs in a timely manner. In Texas, repairs must be done within 7 to 14 days of receiving a written notice from the tenant. Repairs must be completed sooner in cases of emergencies, such as a broken pipe.
Rules on Property Alterations
Let the tenant know that they need permission from you regarding property alterations. Alterations can be anything from repainting the walls to the installation of new flooring.
Rules on Landlord Entry
Just because you own the property doesn’t mean you can enter uninvited or unannounced. The Implied Warranty of Quiet Enjoyment guarantees tenants the right to live in peace and quiet, devoid of any unwarranted interruptions by the landlord, which include illegal landlord entry.
Other things the warranty makes illegal include the following:
- Harassment
- Discriminatory behavior
- Disruptive construction or repairs
- Disconnecting utilities without legal justification
Before entering a tenant’s rental unit, ensure that you notify them beforehand. While not specified in the law, an advance notice of 24 hours will usually suffice. This can help you avoid potential harassment claims by the tenant. Emergency situations are an exception.
You’ll also want to have a legitimate reason for entry. Common legitimate reasons for landlord entry include to inspect the property, to respond to a repair request, or to show the unit to a prospective tenant.
Conclusion
While this list isn’t exhaustive, the goal is to ensure the rental agreement is as detailed as can be. In addition to drafting it, make sure that it is legally enforceable, as well. A qualified property manager can help in this regard.
Real Property Management Talent is home to a team of reliable and professional property managers. If you own an investment property in Bell County and Central Texas, we can help you minimize costs and maximize your income. Get in touch to learn more!
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