The lease outlines the rights and responsibilities of both landlords and tenants, so it’s essential to have a detailed document that clearly defines the contract terms. Preparing a comprehensive rental agreement ensures your tenants understand what’s expected of them and gives you recourse if they fail to uphold the arrangements. If you’re new to property management, use the following guide to understand what the contract should cover.

What to Include in the Rental Agreement

1. Rent and Security Deposit Amounts

New landlords often forget to include how much rent the tenant will pay for the property and the size of the security deposit. Listing the final amounts and providing an itemized breakdown will help prevent misunderstandings and potential conflict later.

Avoid further confusion by specifying how you prefer to receive payment. For instance, you can state whether you take credit cards over the phone or receive checks in the mail. The lease should also include the due date and whether your tenants have a grace period for late payments.

2. Term of the Lease

Your lease should also specify how long the term is, which is the expected duration of the rental. Most landlords choose periods of six months, one year, or 18 months. 

In the contract, specify what happens at the end of the term. The agreement should be clear on how much notice a tenant should provide if they intend to move.

3. Your Right to Entry

While you own the rental property, your tenants have a right to privacy. In the lease, specify the conditions under which you may enter their residence. However, state and local laws can require you to give a certain amount of notice before entering a dwelling for routine maintenance. You may also need to get in to make emergency repairs when no one is home.

Maximize profits by having a property management expert handle the lease and tenants. For over 40 years, Classic Maui Properties in Pukalani, HI, has helped make being a landlord easy and stress-free for property owners across the Maui. Their experienced team can help prepare the lease agreement and arrange maintenance for tenants. Visit their website to learn more about their property management services, or call (808) 878-1001 to discuss your needs with a staff member.