Have you considered renting out your home, apartment, or other property to a third party? When you think about it, owning your own home is a relatively simple and attainable goal. As long as you have sufficient funds, all you need to do is reach an agreement letter with the seller and sign some paperwork.
The first step in maximizing the earning potential of your property is to draft a rental agreement letter.
In this article, we will look at the concept of rental agreements, their purpose, and applications in the business. Plus, in order for you to create an effective rental agreement, we have also provided some examples and templates of rental agreements for you to use as a guide when creating your own agreement.
What Is An Agreement Letter For House Rent?
A rental agreement letter outlines the terms of the contract between a tenant and a landlord. Both parties sign rental agreements, which are legally binding contracts. The tenant has usually already discussed with the landlord all of the information contained in the agreement. This is a common document, and a standard form is frequently used for multiple people in the same building.
This document contains only the necessary information to ensure that the tenant understands the terms of occupancy. This form contains critical information such as the start and end dates of the lease, monthly rent, and utility responsibilities.
What To Include In Your Letter
The following are essential elements of a rental agreement:
- Property Address
- Tenant’s name
- The identity of the agent who will represent us
- Eviction terms and conditions
- What the tenant may do with the property
- Rules governing how the tenant should treat pets on the property
- How to deal with property damage caused by various factors
- Rent amount
- Security deposit
- Total amount due
- Appliances
- Signature of all parties
- Notice requirements
How to Write an Agreement Letter for House Rent
To help you in creating your own, here is a step-by-step guide on how to write an agreement letter for house rent:
- Include all the basic information: The rental agreement should include all basic information about the landlord, the tenant, and the property. The lease agreement should include basic information such as the tenant’s and landlord’s/property manager’s names, the address of the property, and the start and end dates of the rent.
- Include information about the security deposit: After completing all of the basic information, the next step is to include information about the security deposit. Indicate the amount you require and the method of payment. The rental agreement should also include a clause stating that you will return the security deposit in full unless there are issues such as damage to the property.
- Include the rent amount, payment method, and payment date: In the rental agreement, specify the monthly rent, the payment date, and the method of payment to be used. You should also specify whether there are any penalties if the tenant fails to pay the rent on time.
- Provide specifics about property maintenance: Declare the landlord’s and tenant’s respective responsibilities for property maintenance. You should also make a list of all available appliances on your property, as well as their current state. Include the modifications you will allow the tenant to make to the property. Make it clear that the tenant deposit will be used if they cause damage to the property.
- Include information about renting: The tenant may wish to subtenant the space. Therefore , you should specify whether or not you allow renting and, if so, clearly state the terms and conditions, such as the landlord’s right to screen the subtenant before the agreement is finalized.
- Include information about any defects in the property: If your property has any flaws, you must notify the tenant. Disclosing defects on your property will help you avoid future legal battles.
- Include a contract termination statement: When the tenant rental contract expires, you must specify the number of days the tenant may remain on the property. You should also include information about the contract termination process, such as when the tenant should notify you that they intend to terminate the contract and the condition to leave the property.
- Include a signature segmant: Each party must sign their name, write the date they are signing, and print their name beneath their signature.
- Keep the agreement in a safe place: Once you’ve completed the rental agreement, keep it safe. Maintain both hard and soft copies.
Sample and Template
Here’s a sample and template to get you started on writing your own house rental agreement letter.
Agreement Letter for House Rent Template
[Your name]
[Address]
[City, ZIP Code]
[Phone number]
[Date]
[Recipient’s name]
[Address]
[City, ZIP Code]
Dear Ma’am/Sir,
These are the terms of your Amber Leasing rental agreement. The leasing company [landlord] agrees to rent to you [the tenant] the property located at [location], 503B Magnolia Grove, Atlanta, Georgia for one year beginning [date]. The rental agreement will expire on [date] and is eligible for contract renewal following a home inspection.
The following terms must be agreed upon:
- The first and last month’s rent, as well as a security deposit of [amount], are due by [date]. If there is no damage to the property, the deposit will be returned at the end of the agreement.
- The rent [amount] per month. Every month, rent should be received by the 5th. Rent can be paid in cash or by credit card, with a [percentage] transaction fee.
- Every week rent is late, a fee of [amount] is added. If the rent is not paid for one month, the landlord will terminate the contract and evict the tenant.
- No smoking is allowed in this building.
- Pet policy: no more than two pets under 20 lbs. Each.
- There is no street parking. We do not accept responsibility for your vehicle when it is outside of your assigned space, and the studio next door will tow any vehicle in their space.
Please keep in mind that we do not require, but do encourage you to notify other tenants if you will be having guests for parking and noise reasons.
Please sign this form and return it to our main office along with the initial deposit. We welcome you to our community.
[Your name]
[Name of Rental Place]
I have read and comprehend this agreement and freely accept its terms.
________________________________________________________________
[Tenant’s Name]
________________________________________________________________
[Date]
Agreement Letter for House Rent Example
Alisha Grande
123 Main Street
Westland, GA 4356
(043) 578 2134
March 17, 2022
Andrew Jameson
678 Any Street
Westland, GA 0913
Dear Mr. Jameson,
These are the terms of your rent with Amber Leasing. The leasing company (landlord) agrees to rent to you (the tenant) the property located at Hidden Oak Community, 503B Magnolia Grove, Westland for one year beginning April 1, 2022. The rental agreement will expire on April 1, 2023, and contract renewal is possible following a home inspection.
The following terms must be agreed upon:
- The first and last month’s rent, as well as a security deposit of $100, are due by April 1,1022 . If there is no damage to the property, the deposit will be returned at the end of the agreement.
- The rent is $1500 per month. Every month, rent should be received by the 5th. Rent can be paid in cash or by credit card, with a 2% transaction fee.
- Every week rent is late, a fee of $200 is added. If the rent is not paid for one month, the landlord will terminate the contract and evict the tenant.
- No smoking is allowed in this building.
- Pet policy: no more than two pets under 20 lbs. Each.
- There is no street parking. We do not accept responsibility for your vehicle when it is outside of your assigned space, and the studio next door will tow any vehicle in their space.
Please keep in mind that we do not require, but do encourage you to notify other tenants if you will be having guests for parking and noise reasons.
Please sign this form and return it to our main office along with the initial deposit. We welcome you to our community.
Alisha Grande
Amber Leasing
I have read and comprehend this agreement and freely accept its terms.
________________________________________________________________
Andrew Jameson
________________________________________________________________
March 17, 2022
Key Takeaways
- A rental agreement letter summarizes the terms of the contract between a tenant and a landlord.
- All basic information about the landlord, the tenant, and the property should be included in the rental agreement.
- Each party is required to sign their name, write the date they are signing, and print their name beneath their signature.
- Keep your house rent agreement letter safe and maintain both hard and soft copies of it.