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Top 5 Mistakes Landlords Make When Drafting a Rental Agreement
Drafting a rental agreement is one of the most vital stages for the landlords to make in ensuring that they and their tenants have a healthy and legal relationship. Such well-drafted agreements would set clear expectations, prevent misunderstandings and, most importantly, protect the interests of both parties. However, many landlords commit mistakes, half of which were not really intentional, and which would ultimately lead to disputes, and in some cases, monetary or legal penalties. Below are some five big mistakes commonly made in drafting agreements and how they can be rectified.
1. Using Generic or Old Templates
One of the major mistakes that most landlords make is fail using a generic agreement template or old rental agreement template they find on the net. Although owning such templates would prove easier, they are not always suitable for local laws and specific tenant-landlord requirements.
Why it’s a problem:
Local laws vary, and so if a template does not comply with the most recent regulations in your area, it becomes unenforceable.
Generic agreements might miss some critical clauses relevant to your property or circumstances.
The remedy:
Contact a legal counsel (legalwing) and request that the person draft a custom-designed rental agreement for your house and local laws.
Keep updating it after every change in regulation.
2. Ambiguous Terms and Conditions
Ambiguity in any rental agreements brings about misunderstanding between landlords and tenants. For instance, provision of vague terms in relation to rent payment method, maintenance responsibilities, or penalties would result in a dispute.
Why it is an issue:
A tenant could, unfortunately, take advantage of the ill-defined portions to do what would otherwise be their obligation.
Such ambiguities can lead to disputes escalating into costly legal battles.
Clearly define all terms, including amount, due date, form of payment, security deposit, and rules regarding property use Disregarding Security Deposit Laws.In most rental agreements, security deposits exist although they are neglected by landlords when it comes to following the procedure. Such reprehensible acts are not documenting deposits, or even returning it late.
The problem with it:
Illegitimate use of security deposits can result in legal claims or penalties.
It breaks the bond of trust between the tenant and the landlord.
How to avoid it:
Check local laws regarding security deposit limits, modes of storage, and time frame for return. Have a detailed clause in the contract stating the amount, purpose, and reasons for deduction.
Ignoring Maintenance and Repair Clauses
Clearing defining maintenance clauses often gives rise to disputes on which party is responsible for the repairs of broken appliances, plumbing issues, or pest infestation among tenants.
Problem:
Tenants delay reporting these issues, as such, leading to extensive and expensive repairs.
Disputes on repair responsibilities can deteriorate the relationship between the landlord and tenant.
How to avoid:
Clearly state in the agreement repairs and maintenance issue to be handled by the landlord and those for the tenant’s account.Include a clause that tenants must report maintenance issues promptly.
Exit option missing
Many landlords ignore having a proper exit clause that tells how the tenant can terminate the lease, either at the end of the agreed period or before it can run its course.
Why subscribe:
Lack of exit clause may lead to disagreements on notice periods, refund of security deposits, or condition of the property. It hampers the legal standing of early termination or evictions.
That need clear terms concerning notice periods for both parties, conditions for early termination.
Conclusion
Preparing a perfect rental agreement involves careful detailing and knowledge of the laws with clear communication. With proper actions and avoidance of the following mistakes, a landlord can make good agreements that protect the landlord’s interests, cause lesser conflicts, as well as bring out a healthy rental experience for tenants.
Need assistance reviewing your current rental agreements or crafting a custom one? Contact our legal experts today! 7709415315
