A rental or lease agreement is designed for use when the landlord and tenant are entering into a shorthold assured tenancy agreement in the private rented sector. It’s a document that denotes the occupancy of a particular space for a specific time on monthly payment basis. It will be particularly relevant for use when the parties are entering into a longer-term tenancy of 2 or more years
The terms and conditions of the contract are all listed in the contract and once signed is considered legal and mutually binding. It also contains provisions relating to rent reviews and those which enable the landlord or the tenant to end the tenancy during the fixed term if their circumstances change.
With Formly, it is very easy to create your own or use our sample agreement where you can let your tenant fill in their details with e-signature. Also, PDF copy of the signed agreement can be emailed automatically to Landlord and Tenant. If you are a property developer or deal in real estate, it provides you the feature of customising your forms with your own branding.
It is very essential to have information regarding the premises (such as house, flat, basement or attic) offered for rental or lease with its exact address, deposit agreed, contact details of tenant and landlord, duration of the tenancy and finally clauses of terms and conditions with e-signature feature for both parties.
What is lease agreement?
A Rental or Lease Agreement is a contract that sets out the obligations and expectations of the relationship of a landlord and tenant(s) during the tenancy. It is used if you are leasing a house, flat, house share, flat share from another party. A tenancy may either be for a fixed period, which means it ends on a certain date, or it may be periodic, which means that it runs on a week-to-week or month-to-month basis.
Do I need a lease Agreement?
It is important to have an agreement in place between a landlord and a tenant in order to lay out all the rights and responsibilities of each party during the rental agreement to keep all involved parties protected by law and make repossession simple.
A Lease Agreement is designed to safeguard both parties' interests while ensuring that the property is maintained and looked after. Designating duties keeps the tenant in a comfortable home during the tenancy, and the landlord will receive a well-maintained home once the agreement has ended.
A Rental Agreement may be used if:
· You are a homeowner and plan to lease out a property or wish to let part of the property to a friend, family member, or tenant
· You are a tenant looking to lease a property, a room or space to let
· You are a property manager or real estate agent in charge of handling properties on behalf of a landlord or landlady
What should be in a lease agreement?
· The term of tenancy (for example 6 or 12 months)
· Weekly or monthly rent payments
· Name of all tenants and contact details
· Names of owners or property managers and contact details
· Scheduled payment dates (for example- payable on the 1st of every month)
· Agreed payment method
· Security deposit value
· Tenant responsibilities/restrictions
· Policies related to Pets
· Utilities and maintenance
· Garden maintenance (for example – who is responsible for the maintenance)
· Optional break clause/fines
· End of the tenancy
Can I write my own lease agreement?
The answer is Yes you can. A residential tenancy agreement is a contract between you the landlord and your tenant(s). It normally consists of basic information such as the period of tenancy, monthly rent payable, responsibilities and maintenance of the property and fines if terms of the agreement are violated.
With Formly, it is very easy to create your own rental agreement from home. You can add or amend your fields according to changes with each lease, such as basic information like names, contact details etc and get e-signatures of both parties (landlord and the Tenant) to confirm the lease agreement and gives both parties a peace of mind and clear insight into the responsibilities you’re undertaking.
Can a rental agreement be used as proof of address?
A valid rental or lease agreement can be used as proof of address in many cases. With Formly, you can produce a PDF copy of the lease agreement for your tenant(s).
Can a rental or lease agreement be cancelled?
You can only end your fixed term tenancy early If there is a break clause in your tenancy agreement or by getting your landlord to agree to end your tenancy. Your tenancy agreement will tell you when the break clause can apply.
According to the clause in your rental agreement, if notice period for termination is mentioned as two months, then the tenant or the owner has to inform two months prior about the termination. If both the parties, the owner and the tenant, have no objection in terminating the agreement, then there are likely no risks and you can move out early without paying rent for the full tenancy.
What is a guarantor on a lease agreement?
A guarantor is someone who agrees to pay the tenant’s rent if the primary tenant fails to pay. The guarantor will be legally liable in such cases.
If you are using a guarantor clause in your tenancy agreement you should check their ability to pay rent in the event the tenant does not (for example- by carrying out a credit check). For student lease agreements, or for tenants without steady employment guarantors are often required.
These templates are suggested forms only. If you're using a form as a contract, or for some other purpose with legal implications, we recommend that you are complying with applicable laws and that you consult a legal advisor before relying on any particular form.