Key Terms Every Landlord Should Include in a Lease

Landlords have the right to include specific terms and conditions in their lease agreements to ensure a fair and manageable rental experience for both parties. Understanding what to include can help prevent disputes and protect your investment. In this article, we will explore essential terms that should be included in any lease, as well as common practices to avoid. This information is particularly valuable for landlords who are new to the process.

Legal and Ethical Considerations

Landlords have the freedom to add terms to the lease as long as they are legal and ethical. However, the more restrictive a lease becomes, the harder it may be to attract tenants. While it is important for landlords to protect their interests, overly restrictive terms can lead to unnecessary conflicts. Here are some key points to consider:

Legal and Ethical Terms: Landlords must ensure that any terms added to the lease are not discriminatory and comply with state and local laws. It is advisable to review legal requirements and guidelines relevant to your area before finalizing the lease agreement. Justified Terms: Terms should be reasonable and necessary. Landlords should consider their past experiences with tenants and use this information to create a balanced and fair agreement. Clarity and Transparency: All terms in the lease should be clearly communicated to tenants. Ambiguity can lead to misunderstandings and disputes.

Common Terms Landlords Should Include

Landlords can include a variety of terms in their lease agreements to ensure a smooth and fair rental experience. Here are some essential terms and conditions that landlords should consider including:

Pet Policies

Landlords often restrict pets in their rent properties due to maintenance and cleanliness concerns, though this is not always a hard and fast rule. However, if a landlord chooses not to allow pets, it is important to explicitly state this in the lease. It is also crucial to clarify and set specific terms for tenants who want to bring service animals or comfort animals. Landlords should be aware of the legal distinction between these terms. For example:

No Animals Allowed: Use clear and concise language to state that no animals, including service animals and comfort animals, are allowed. Service Animals: Include specific terms for certified service animals and clearly differentiate them from comfort animals. It is important to note that fake service animals are an issue landlords need to be aware of and take measures to prevent. Comfort Animals: Highlight that while these animals can be considered, they often come with additional regulations and fees, and must adhere to the same terms and conditions as regular pets.

No Conducting Businesses on the Property

To keep noise levels down and maintain a quiet living environment, many landlords opt to include clauses prohibiting tenants from conducting businesses on the property. Key points to include:

No Business Conduct: Clearly state that no commercial activities are allowed on the premises. No Yard Sale or Business Advertising: Specify that tenants are not allowed to conduct yard sales, post business-related signs or advertisements, or engage in any form of commercial activity.

Parking Rules

Parking can be a contentious issue in many rentals. To prevent conflicts and ensure clear communication, include specific terms regarding parking:

Number of Vehicles: State the maximum number of vehicles allowed to park on the property and ensure they are registered to the tenants. Registration and Insurance: Require tenants to keep their vehicles insured and in good working condition at all times. No Additional Parking: Clarify that no additional vehicles are allowed, even if tenants overstay their welcome or have guests.

Conclusion

To ensure a successful rental experience, landlords should carefully consider and include key terms and conditions in their lease agreements. By reviewing state and local regulations, consulting with legal professionals, and consulting online lease templates, landlords can create comprehensive and protective lease agreements.

Remember, while legal and ethical considerations are paramount, including clear and fair terms is the best way to maintain a harmonious and profitable relationship with your tenants.