Understanding a Rental Agreement Contract

A rental agreement is a written contract between a landlord and a tenant which gives the tenant the right to occupy a house, apartment, duplex, etc. for a short period of time (usually 30 days) in exchange for the payment of rent.  Most rental agreements can a provision which allows for the automatic renewal or extension of the agreement unless the landlord or tenant gives written notice to the other party of his intention not to renew.  The typical rental agreement gives the landlord the right to change the terms of the agreement as long as he gives the tenant proper written notice.

The terms “lease” and rental agreement” or often used interchangeably.  A lease, however, is an agreement between a landlord and tenant which gives the tenant the right to occupy a property for a longer period of time, usually six months to a year.  In exchange for the right of occupancy, the tenant agrees to pay rent and abide by the other terms of the lease.

Rental Contract Terms and Conditions

Certain terms and conditions are common to most leases and rental agreements.  These include:

• Description or Address of the premises being leased
• Name and Address of Landlord
• Name of Tenant
• Term of Lease
• Amount of Security Deposit
• Rental Amount
• Rent Due Date
• Grace Period
• Late Fee/Bounced Check Fees

Rental agreements and lease agreements may also include provisions relating to the number of occupants in the property, rent increases, whether the landlord or tenant is responsible for paying the utilities and making repairs, pets, the landlord's right to enter the premises, the landlord's remedies if the tenant violates the terms of the lease, prohibiting illegal activities on the property, and any other information the landlord feels is important.

Things to Look Out For in Rental Agreements

What should a tenant look out for when reviewing a Rental Agreement? There are certain provisions that may be contained in a rental agreement or lease agreement that you should be wary of. These provisions usually create problems for tenants and should be removed or renegotiated if at all possible.

• Shared Utility Meters –  Ask the landlord if it's possible for you to get a meter in your name.  This way, you'll only pay for your actual usage rather than having the bill split equally between you and the other tenants in the building.
• Automatic Rent Increases – Avoid these clauses because they give the landlord the right to automatically raise your rent to defray an increase in the property taxes, insurance, and utilities, and other operating costs of the property.
• Unrestricted Access by Landlord – Because you have agreed to pay rent in exchange for the right to occupy the premises, do not allow a landlord to include a provision that gives him an unlimited right to enter your property.  Many states have declared such provisions unenforceable.
• Hold Harmless Clauses – Ask that any clauses which relieves the landlord from liability for injuries your suffer as a result of his negligence or failure to maintain the property be stricken from the agreement before you sign it.

Common Rental Contract Violations

A tenants violates or breaks a lease or rental agreement if he does something prohibited by the lease or fails to do something required by the lease.  Common violations include:

• Subletting
• Having Pets
• Failing to Pay Rent/Late Fees

Unsure of Your Rights and Responsibilities?

If you are unsure of what the terms in a lease or rental agreement mean, seek legal advice before you sign it.  Remember, once you sign the lease or rental agreement, you are legally bound by its terms. If you find yourself in a dispute with your landlord, immediately schedule a consultation with an experienced and knowledgeable landlord-tenant attorney.