What are most important terms to include in your lease?

[Michael Mason]

Hi All,

New rental property owner here.  I'm curious what you all think are the most important terms to include in your lease?  What non-standard terms have reduced your risk, hassle, and property maintenance issues the most?

Thank you!

[Rashid Zuev]

Here are a few important terms to include in your lease agreement:

1. Rent amount and due date: Clearly state the amount of rent that is due each month and the date on which it is due.
2. Security deposit: Include the amount of the security deposit and any conditions under which it can be returned or forfeited.
3. Term of the lease: Specify the length of the lease, whether it's a month-to-month or a longer-term lease.
4. Occupancy limits: Set a limit on the number of people allowed to live in the rental unit.
5. Maintenance and repairs: Clearly outline the responsibilities of the landlord and tenant for maintaining and repairing the rental property.
6. Subletting: Outline the conditions under which the tenant may sublet the property, if at all.
7. Eviction clause: Include a clause outlining the process and grounds for eviction, in case it becomes necessary.
8. Insurance: Clearly state what type of insurance is required and who is responsible for obtaining it.
9. Pets: Outline any pet policy and any associated fees.
10. Smoking: State whether smoking is allowed on the property or not.

In addition to these standard terms, you may also want to include some non-standard terms that have been proven to reduce risk, hassle and property maintenance issues, such as:

1. A clause that allows you to enter the property for inspections or repairs with proper notice
2. A clause that limits the tenant's ability to make alterations or improvements to the property without your permission
3. A clause that requires the tenant to maintain the property in a certain condition and return it in the same condition at the end of the lease
4. A clause that requires the tenant to pay for any damages caused by them or their guests
5. A clause that allows you to terminate the lease if the tenant violates any of the terms of the lease agreement.