What needs to be included in a lease or rental agreement?

Recommended Additional Items

Additionally, for these agreements to properly serve their function and protect the interests of all parties involved, it is also a good idea for them to include language regarding the following items:

• Non-delivery of possession: If the landlord is unable to give the tenant possession of the property upon the commencement of the term, then the tenant will not be required to pay rent until, and starting from, the date they obtain occupancy.
• Right of entry: This section explains the circumstances that the landlord may enter the property and how much notice is required. Landlords normally must provide at least 24 hours' notice in order to enter the unit to make repairs or to show it to prospective tenants. No notice is usually required during genuine emergency situations.
• Tenant's right to withhold rent: Tenants are not allowed to withhold rent for making necessary repairs to the unit except in very narrowly defined circumstances and after giving landlords proper notice and a reasonable amount of time to make repairs (usually 30 days' notice).
• Constructive eviction: This occurs when a landlord does not physically or legally evict a tenant, but causes a substantial interference with the tenant's occupancy, usually rendering the property uninhabitable. Often this is due to the landlord's neglect or interference with the tenant's use and enjoyment of the property. Examples include failure to provide or repair necessities (i.e. heat, water, and utilities), failure to provide a reasonable means of entering and exiting the unit (i.e. changing locks or blocking an entrance), and refusing to clean up health or environmental hazards.
• Insurance: Unless the parties agree otherwise, the landlord is not required to carry insurance to cover damage to tenant's personal property or loss caused by fire, theft, water, or any other causes. Tenants are responsible for carrying any insurance required by law. The agreement can also list other types of insurance coverage tenants are required to maintain.
• Property taxes: On residential leases, landlords are normally responsible for paying property taxes. However, for commercial leases, tenants may be held responsible for property taxes, building insurance, and maintenance (called a triple net lease).
• Adjustments: Rent may be increased only at the expiration of fixed-term leases. LegalNature's agreement requires at least 30 days' notice for such an increase. In most states, rent may be increased at anytime during a periodic tenancy—such as month-to-month leases—after providing 30 days' notice. Additionally, landlords in most states may pass property tax increases through to tenants upon 30 days' notice.
• Assignment and subletting: Tenants may not assign or sublease their interest in the rental property without the landlord's prior written consent.
• Furnishings and appliances: The agreement should identify any furnishings and appliances being supplied by the landlord.
• Unique features: Since every rental property is different, leases should be tailored to the unique features of the premises. Common examples include provisions on keys, parking, pets, and smoking. Local and building ordinances may impact landlords' rules in this regard.
• Indemnification: This provision helps protect landlords from liability for claims related to the rental property. It states that the landlord may not be held responsible for any damage or injury that occurs on the property unless it arises from the gross negligence or willful misconduct of the landlord or the landlord's agents. 
• Notice: This provides the proper way to give written notice to the parties under the agreement and includes their contact information. 
• Move-in/move-out inspection: It is always a great idea to use a move-in and move-out inspection checklist to record any damage existing on the property. This will go a long way to preventing conflicts at the end of the tenancy and provide proof of damage or lack thereof should the conflict escalate to court.

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