Rental Agreement Template

Lease / Rental Agreement Templates For Landlords

I’m sure I don’t need to tell you how important a proper water tight rental agreement is. Without one, or without a good one you leave yourself and your client open to a massive amount of uncertainty.

This should be avoided at all costs as it can lead to lengthy disputes. On this site we will provide you with all the information you need to know to draft your own free template.

On this page we will give you general information on what a lease agreement is, the sort of terms expected and why you should have one. Read this page before looking at our full free template with tips on modifying it to suit your needs.

What is a rental agreement?

A lease agreement basically sets up the terms upon which a landlord rents to a tenant. It is a legally binding contract and should be present in all cases. A rental agreement isn’t just for housing. It can be for car rentals, software leasing or tool rentals too. Obviously the terms of the agreement differ depending on what is being rented. The key element to remember is that it’s a legally binding agreement between the two parties with an intention to be legally bound.

What terms are typically on the agreement?

The agreements usually start off listing very general information. Like the names (and address) of the landlord and tenant, the length of the tenancy and the cost per month. This states what happens in an idea situation where nothing goes wrong. It answers the question “who is renting to who, for how long, and for how much?”

Next answers the obligations on the landlord and tenant. This section should state what the tenant should do (basically not break stuff) and the landlord should do (fix things when they break).

Then there are more general things about payment and responsibility. This will answer questions about who is responsible for paying the water and electric bills.

Lastly there should be a section on termination. This should say how much notice needs to be given if one party wants the contact to come to an end prematurely. It also states what could happen if one party does not complete their obligations.

Finally the bit that you all know! The contract is dated and signed at the bottom of the page by both the landlord and the tenant. There will be other terms too but this is the basic overview, to see the other terms look at our rental agreement template.

Why do we need a lease agreement?

The lease agreement avoids disputes. If one party is confused about the agreement the contract should be consulted to rectify the matter. It should try to answer any questions you have about the rental agreement without needing to go to court over the matter.

It essentially stops people changing their mind as to what has been agreed after the contract has been signed. It also provides evidence of a legal agreement so either the landlord or the tenant can’t just stop the agreement whenever they want (unless it says they can in the contract).

A good contract should leave both parties nice and clear about what they need to do, and what the other person needs to do. They should understand who is responsible for what, when and who needs to pay what amount, and the terms upon which the contract can be stopped.

Before you see the template we should briefly look at the key elements which make up up a contract. These are offer + acceptance (agreement) along with intention to be legally bound. And offer can be something as simple as placing an advert in a newspaper, that offer can then be accepted by someone any number of ways. This could be by fulfilling a certain condition stated by the seller, or another action.  This could be just saying “I accept your offer”. It doesn’t need to be with words, conduct can amount to acceptance. Then there needs to be a legal seal of approval. Something which makes the deal legally binding. This is known as consideration, it just needs to be something which makes the contract different than just giving something away. The obvious example is giving money in exchange for goods.

If in doubt about a term, write a section about it in the contract stating what will happen. This will avoid court time and make the process easier for both the landlord and client.