Are you a property owner in St. Johns, Idaho, looking to rent out your home? Your lease agreement is crucial for your rental property business as it can either make or break your finances while ensuring compliance with state, federal, and local laws.
Without a rock-solid lease, you are inviting hassle and stress due to disputes and financial issues.
So, what makes an excellent lease agreement? Keep reading this article to learn some tips on how to craft a solid rental agreement in St. Johns.
Clauses to Include for a Strong Rental Agreement
As a landlord, we’re sure you are familiar with the basic information that needs to be included in your lease or rental agreement, such as your complete property address and the names of all your tenants. However, you can include these clauses in addition to this basic information to craft a strong lease agreement.
A. Premises Clause
This clause describes the permissible uses of your rental property by your tenants. You and your tenant must mutually understand the permitted activities inside your property to keep the value of your property and your rental home in good shape. This clause also usually lays out your tenant's responsibilities, the activities they are allowed to do inside your property, and the limitations.
Here are the factors you must consider when writing your Premises Clause:
- Compliance with Laws
- Description of Permitted Use
- Maintenance and Repairs
- Restrictions
Important Note: This clause helps you to avoid future problems by outlining the permitted and intended uses of your rental unit.
B. Severability Clause
As a landlord, it would be smart to have a safety net in case things don't work out as planned. Although this clause might sound complex, it only states that the other sections in your rental agreements will remain valid even if a part of it is deemed wrong by the law.
For example, even if the court says that one portion of your lease agreement doesn't comply with the law, the rest of the contract remains valid. You can secure an excellent severability clause by doing the following:
- Avoid legal loopholes by outlining guidelines when it comes to invalid clauses.
- Have a clear definition of which parts of the contract this clause applies to.
- Avoid using it abusively by indicating the specifics while complying with St. Johns, Idaho law.
- Be specific about how this clause ensures the validity of the other sections of your rental agreement.
Important Note: You can include this clause to avoid having your entire lease agreement voided due to a single invalid part from it.
C. Lead-Based Paint Disclosure Clause
A Lead-Based Paint Disclosure is a legal requirement for rental properties built before 1978. This law mandates that landlords must inform tenants about any known lead-based paint hazards in the property. It’s crucial because lead exposure, especially from old paint, can cause serious health issues, particularly for young children.
Important Note: By including this disclosure, you can comply with federal regulations, and your tenants will be aware of potential risks, ensuring transparency and safety in your rental property business.
D. Tenant Responsibilities and Occupancy Rules
Your tenants also have specific responsibilities while they are living in your rental unit. Some of the things to include in your lease agreements are:
Occupancy Limits: Your lease agreement must clearly specify the maximum number of occupants allowed in your rental unit. Your tenants, on the other hand, must adhere to these limits and must notify you if there are any changes in the number of occupants in your rental home.
Tenant Privacy and Landlord Entry: All tenants have the right to privacy, which you must respect as a landlord. Indicate in your lease agreement the advance notice prior to your entry. You must also set your visits during reasonable or office hours.
Maintenance, Repairs, and Fees:
It’s important to clarify who handles repair requests—whether it’s your duty or your tenant's. This section of the lease should also define responsibilities regarding parking spaces and outline any applicable late fees for delayed rent payments.
Your tenants are expected to maintain the property in good condition, ensuring that any issues are reported in a timely manner and that they don’t cause excessive damage beyond normal wear.
E. Rent and Security Deposit
Here are the details you must include in this section:
- How rent will be collected (Monthly, bi-weekly, or some other arrangement)
- Accepted payment methods for the rent (Online transfer, check, etc.)
- Clearly state how and when you will return the security deposit of your tenants when their lease term ends. You must also explain the conditions that may affect it.
What if a tenant fails to pay rent? In this case, you must also clearly specify what will happen next in their rental term. Include the grace period or days and the legal actions that can be taken against them if they fail to pay their rent within those days.
F. Lease Term and Renewal Options
This particular clause in your rental agreement indicates the rules on how your tenant’s lease term can be extended or ended.
Usually, when a tenant wants to renew their lease, it will be automatically done unless you or your tenant provides a written notice to negotiate the terms of your rental agreement. If your tenant plans to move out at the end of their lease, they must provide written notice within the time frame required by state law.
Important Note: Through this clause, you can have assurance that you and your tenants have a mutual agreement and understanding regarding their end of the lease and renewal options.
How to Avoid Common Legal Pitfalls in Your Lease Agreement
Failing to specify rules and clauses in your rental agreement can lead to serious headaches or even legal battles.
Whether it's about wear and tear or excessive noise, keeping your rental agreement clear and precise is crucial.
Fortunately, there’s a team of real estate experts in St. Johns that can help you in drafting an ironclad agreement through 1st Rate Property Management.
Protect Your Investment with a Customized Lease Agreement Crafted by Experts
A well-crafted lease agreement is essential for ensuring a smooth and stress-free rental experience for all the tenants and landlords involved. It clearly outlines everyone's responsibilities, safeguarding against potential conflicts and misunderstandings.
Don’t leave your peace of mind to chance and partner with the experts at 1st Rate Property Management!
Our team specializes in creating legally compliant leases that protect your interests and promote positive relationships among all tenants. We also have Owner FAQs where you can find answers to some of the common concerns that St. Johns County landlords usually encounter.
Ready to lay the groundwork for a seamless rental experience? Get your FREE Rental Analysis today and let 1st Rate Property Management turn your lease agreement into a strong foundation for success in St. Johns, Idaho!