Terms that Rental Contracts Should Include
Matters that needs to be considered when preparing a rental contractThe property owner, the tenant and the guarantor needs to sign the contract at the same time.
The address of the property needs to be included in the contract.
In order not to have any disputes in the future, all the contents of the property needs to be listed in the document.
The amount paid for the deposit needs to be written at the back of the contract if it is received in cash and both parties needs to sign just below this amount. This amount also needs to be included in the terms of the contract.
The permanent address of both parties, as well as their phone numbers needs to be included in the contract.
It needs to be included in the terms that the tenant cannot rent the property to any other party or allow third parties to use the property while he/she is not there.
The water, electricity, gas bills of the property, as well as the maintenance charges belongs to the tenant, while the cost due to the structure of the building belongs to the landlord.
If the landlord handed the property after painting the walls, in case the walls need repainting when the tenant moves out, this cost belongs to the tenant and needs to be mentioned in the contract.
If the tenant would like to renovate or make changes to either the exterior or the interior of the property, the changes need to be confirmed with the landlord with a separate contract.
It needs to be written in the rental contract that; if the landlord accepts the changes, when the tenant moves out, he /she needs to leave the contents. For example, if the tenant changed the kitchen of the property with the permission of the property owner, the tenant cannot remove the kitchen units when he is moving out.
If the tenant would like to extent the tenancy period, he needs to know that there will be an increase in rent for the next rental period.
The percentage that the rent will increase will need to be included in this contract.
The guarantor will still be liable if the tenant decides to extent his rental period.
The parties (the landlord and the tenant) need to notify each other 30 days before the tenancy period ends. If they do not, this means that the contract will be extended for another period automatically.
The deposit taken from the tenant will need to be refunded if there is no damage to the property and if all the bills are paid. This needs to be included in the contract and stated that the landlord does not have a right to hold on to the deposit longer than he/ she should.
The contract will include the bank account number and the sort code for the account that the rent will be paid to as well as the date that it will be paid each month.
The tenant needs to notify the water, electricity, gas, phone etc companies that they moved in within 30 days starting from the date when the contract is signed.
Finally, the contract also needs to notify the courts that can be used if there is a dispute between parties. If you are thinking to rent out your property on a weekly or monthly basis, the terms of the contract is not this strict. However, if you are thinking to rent on a yearly basis, it is worthwhile to include all the items above not to have problems in the future.
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