Whether is a commercial or residential property, a lease agreement is an essential piece of document that must be in place. Almost every state recognizes such a document, and it needs to be prepared, signed and a copy of the paper kept with both parties – the landlord and the tenant – for future use. Read and find out why a rental agreement form is needed, and why it is such an important document.
For avoiding disputes
It is often that a rental agreement is the cause for a dispute. This is especially the case when the agreement is a verbal one, and not a written one. When either landlords or tenants are not clear about certain things about the contract at the very outset, differences might crop up later. That is exactly the reason why there is a need for written rental agreements. These can outline all the important things in a rental relationship, so that both parties are clear about the kind of agreement that they intend to enter into.
It can be used as a reference, even in a court of law – which can be approached by either party – in case of any arguments and differences. With legal help, such differences can be resolved. It is important to note here that a rental agreement is legally binding in nature, when duly signed (and notarized, as per the requirements of some states).
For specifying rental details
All the small details regarding the rental relationship can be specified in a rental agreement, such as:
- Pet policy
- Usage of rental property
- Number of tenants allowed
- Types of activities that are allowed
- Timing for entry and exit
It does not matter whether the rental property is commercial or rental, disputes can arise with the same. Oral rental agreements can be a subject of dispute, as either party can deny having said something or the other. With a written rental agreement, you can obliterate such risks and make the contract foolproof.
Inclusion of the important details
A proper California lease agreement for rent includes all the small but important details, such as:
- Who will pay for the cost of utilities?
- How many tenants are allowed?
- Who will be responsible for maintenance and repairs?
- Will cooking be allowed inside the premises?
As early as possible, each of these details needs to be clarified. It is difficult to enforce a verbal agreement, even when it happens to be legally binding. That is not the case with a written rental agreement – which is actually enforceable by law. If the contract is breached by one party, the issue can be brought to court by the aggrieved party. When everything is written in clear terms, the court will find it easy to decide who is right and who is wrong.
Templates for rental contracts are freely available, and can be used easily for preparing a rental agreement. But these are typically only generic templates and have only minimal information. It is a good idea that you purchase a set of rental contract forms that are written professionally. By paying a reasonable cost, you can immediately download a standard residential lease form, a rental application form, a move in/move out form and even a rental receipt letter. Such kinds of forms have all the important details.