Basic rental agreements are an example of simple agreements where a party awards the ‘rights of occupancy’ to the other party. This award follows a standard format, which is prevailing in the area. For instance, Separation Agreement Template of electricity charges, the burden of property taxes and share of other municipal charges. The property owner can add these expenses to the main bill or deduct them. You may also see agreement samples.
Check out for an apt sample on the internet and make sure that it is covering all the major civic expenses as an addition or deduction in the favour of a given party. If it is added to the main rent, then it should be mentioned in the contract that rent is inclusive of A, B and C charges. If it is not a part of the rent, then again it should have a mention in the contract as an exclusive item. You can also see Agreement Template.
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All basic rental agreements must be put in writing. The potential tenant should be given a copy of the agreement by the property owner. Word of mouth agreements are much harder (but not impossible) to follow up in a court of law especially if a case is being filed by either party against the other. It is therefore advised to have a written agreement.
The potential tenant should scan through the document carefully, understanding each and every term and condition before signing it. More often than not, there may be clauses that the tenant is unsure of. At such an instance, it is advisable to have a third neutral party who is well versed in the legal matters (a professional) to advice accordingly.
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> Occupancy and Limits
All adults (married or unmarried) living in the rental unit must be named as tenants and are required to sign the lease or rental agreement. By doing so, the tenant becomes responsible by law for all terms included in the agreement. This is inclusive of payment of the entire rent; meaning that the landlord is permitted by law to terminate the tenancy for all the tenants if one tenant violates important terms of the tenancy.
The property owner / landlord is therefore also able to seek the whole rent from any of the tenants regardless of others leaving or are unable to pay. Most agreements specify that only the tenants (those that signed the agreement) and their minor children are the residents of the rental unit. This gives the landlord power to control the limit of occupants and who they are.
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Residential Basic Rental Agreement
A basic rental agreement must have the full amount of rent specified (inclusive of the extra bills, based on the agreement between tenant and landlord) and the mode of payment such as bank transfer, mail, cash deposit etc. Fine rental details are spelled out in the agreement such as;
- Charges if a cheque were to bounce
- Payment methods that are acceptable (such as personal cheque only, bank transfers on a particular date)
- Any charges if the payment method is breached (if the cheque bounces, if the deposit is not paid on time etc.)