Every landlord knows that a rental lease is the third party between landlord and tenant. If it’s created clearly, then conflict will be minimal. Thus, it helps to know what goes into a rental lease agreement to forge a good relationship between you and your tenants.
Defining a Rental Lease
A lease is a contract entered into by the landlord and tenant, permitting the latter to live in a property for a given period. This is usually a term of one to two years. The lease provides the terms and conditions mutually agreeable to both parties. This can refer to the property’s rental rate, term length, policies on pet ownership, to name a few.
The lease is created to benefit both parties by protecting their rights. As a landlord, you can’t simply ask the tenant to move out before the term ends. In the same vein, the tenant can’t just decide to move out before the rental term is finished. With this factor in mind, it’s sensible to design rental leases that are clear and specific.
What to Include in a Lease Agreement
Here are key items to include in your Missouri rental lease to avoid misunderstandings and disputes:
1. Lease Term
Stating a lease term in the rental lease is crucial. Otherwise, how will you know when the tenancy expires? If a landlord does not specify a lease term, the tenant could be subjected to rental rate increases at any time.
Lease terms should contain an exact date that includes the month, day and year. The start and end dates should be specific. Do this to avoid confusion.
2. Security Deposit Conditions
Since collecting a security deposit is a typical practice, it’s prudent to include a clause on it. You should cover the following on your Missouri rental lease:
- The security deposit amount you collected
- The date you accepted the security deposit
- Name and location of bank/institution where the security deposit is kept
- Rate of interest the security deposit accrues
- Conditions for when deductions are made on the security deposit
- Process of the security deposit refund
3. Rent Rate
State the rent amount and the manner of payment. Identify the channels available to the tenant. You must also include limitations, such as only accepting personal checks and not cash.
Include additional charges, for example, late fees. Determine a value charge on top of the rent payment. Is there a grace period before the fee is added? If a check bounces, is there an additional penalty? Being transparent is essential.
4. Rent Due Date
Stating the specific due date informs the tenant to pay promptly. By signing the lease, it means the tenant has agreed to pay their rent on the written date. Excuses for late payment regarding your Missouri rental space will be eliminated.
Most landlords assign the due date at the 1st of the month for easy recall. Make sure to consider situations when the tenant fails to pay on the due date. Outline the method of rent collection and the consequences of not paying on time. If a tenant won’t be able to pay on time, including the contact information of the person to reach out to is helpful to add.
5. Landlord, Tenant and Property Information
Every rental lease should contain the names and addresses of both the landlord and tenant(s). The name of the property must also be stated, specifically the house number, street name, town, state and postal code.
Other clauses to add would be the responsibility of rental payment to be shared by all the occupants. Regardless if one will decide to move out, the remaining tenant still needs to pay the full amount. It’s also beneficial to state the number of occupants permitted to stay in your Missouri rental property.
6. Important Policies
Landlords must outline the property policies that are essential in the rental lease. This will provide tenants with a guide on what to do and not do while staying in the Missouri rental unit. Some of the most common conditions are the following:
Smoking is not permitted
It’s best to be explicit and state what type of smoking is banned, such as weed or electronic cigarette (vaping). You can also mention which particular areas are allowed for smokers.
Illegal activity is prohibited
It’s best to list specific acts such as drug use, drug dealing, criminal activity, excessive disturbance, as examples.
Pet ownership is conditional
If you allow pets in your Missouri rental space, you need to state what kind of breeds and sizes of animals are allowed. You should include clauses when it comes to cleanliness and the use of leashes.
You can also tackle noise disturbance pets can cause.
7. Late Fee Penalties
Sometimes a tenant who pays on time can experience a fortuitous event. It’s good practice to include a policy on late fee penalties. It depends on the landlord whether a grace period will be provided. This must be stated clearly to prevent conflicts.
Different methods of calculating penalties are possible. Make sure to include this point in the lease. Some landlords practice flat fee-charging, while others prefer daily fee-charging.
Some also opt to compute the charge based on percentage payment, and this is valid as well. No matter what you decide, just make sure it is clearly written in the rental lease.
8. Landlord’s Right to Property Entry
Different states specify a notice period for landlords to enter a tenant’s rental unit. This can be for regular inspection or showing the property to interested renters when the expiry of the lease is nearing its end. It can also be for fixing damages inside the unit.
In Missouri, there’s no specific statute written about having a required period of notice. Nevertheless, it’s good practice to inform the tenant ahead of time. A period of 24 hours is generally acceptable.
Bottom Line
Rental leases act as guides for tenants and landlords. It determines actions that are acceptable and unacceptable. Thus, creating a concrete lease containing these key items will be advantageous for all parties.
