A simple one-page lease agreement is an agreement between the landlord (owner of real estate) and the tenant (who is willing to pay rent while staying at the property). It can be made for a fixed period or on a month-to-month basis.
The general terms added to a lease agreement include monthly rent, starting and ending dates, and utility responsibilities. The terms added to the agreement are generally negotiable between the two parties and are decided after mutual discussion. Once the deal is signed, it becomes a legal document.
It is unlike the standard residential lease agreement, which covers every single aspect, such as notices, pets, landlord’s agent, and various other optional clauses.
These terms are important but not mandatory for making a binding lease. Whereas a simple lease agreement is only a page long and contains the bare minimum to be considered as an effective lease.
Here is the explanation of what must be included in simple lease form and how you should write it for sealing the deal.
Compulsory things to include in a lease agreement
To make a simple binding lease agreement, you should include the following terms:
- The name of both parties (landlord and tenant’s name)
- The leased property type and its address
- The rent that tenant has to pay regularly
- The lease expiry date
- Signature of both parties to make legal binding
Note: As certain clauses are not added in a simple version, the tenant can take advantage of the broad terms. He can claim that his actions are not against the rules.
Rental applications, paid background checks, and references can help offset this risk. With the first one, the landlord can get the tenant’s personal and employment information. It can help him estimate his behavior and to decide whether he should rent his property to that person or not.
How to write a lease agreement
Name of parties
In the first section, the name of the parties who are to be bound by the lease agreement is added. It also includes the date of the agreement, the name, and the address of the landlord.
Property type and address
In this section, you have to add the complete address and unit number (if it exists) of the property to be leased. Also, check the box corresponding to the property type.
The term is the length of time for which the landlord leases the property. For residential agreements, the lease can have any term length. However, the most common term length is one year. You should write the starting and ending date of the term.
➡LEARN MORE: How to evict someone who is not on the lease
Write down the rent amount that the tenant will pay every month and the day of the month on which the tenant has to pay the rent. In most cases, it is the 1st of every month. The landlord should also add how the tenant must pay the rent, such as a monthly check, online transfer, or an ACH transfer.
It acts as reimbursable coverage for any damage to the rental property caused by the tenant during the lease period. Also, it cannot be deducted on account of fixing of usual wear and tear of the property.
If the landlord wants a security deposit, check the first box should. Then add the amount of security deposit and the time period in which the landlord has to return the deposit after lease expiry. Typically, the landlord charges a security deposit equal to rent of one month.
If the landlord doesn’t charge a security deposit, the lower or second box is checked.
Signatures complete the lease agreement writing process. To make the lease officially binding, both parties must do their signatures. For this, printed names and signatures with dates are added.
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