What is a residential lease?
A residential lease is entered into between the owner of the property and the tenants when the property is let out for residential purposes. As opposed to commercial lease agreements, a residential lease contains a specific clause that the property will be used for residential purposes only. In effect, a residential lease is a legal document enforceable by the courts of law and holds the landlord as well as tenant responsible for the obligations outlined in the lease.
What should you include in the residential lease?
The format for a standard residential lease can be provided by any law practitioner. In fact, one can even get an idea of what the lease format looks like through one of the many free templates available on the internet. However, the following are some of the basic points to be included in a residential lease:
- Description of the property.
- Full address of the property/ house.
- The amount fixed as rent along with the amount given as advance or deposited as security.
- The total term for which the lease is valid i.e. up to 1 year, two years, etc.
Some important tips to keep in mind
While drawing up a residential lease, make sure to keep the following points in mind to ensure that you get a clear and transparent deal:
- All the details of payment apart from rent amount should always be included, for example, due date of rent, frequency of payments, etc.
- The lease should always be in writing. An oral residential lease has no value in law.
- Any other condition such as regarding keeping of pets, sub-letting, etc. should also be clearly mentioned.