Residential Lease Agreement Information
A residential lease agreement is an agreement for residential property such as a house, an apartment, townhouse, walk in apartment, etc.…. The Lease Agreement is a contract between the Landlord and the Tenant, in which the Tenant is agreeing to lease the property at a monthly rent payment. Once all parties sign, the lease becomes legally binding.
At times, a tenant needs a guarantor, a third-party, to guarantee to the Landlord that the Tenant will pay the monthly rent. If the tenant does not the Guarantor is the legally responsible.
In order to get to the Lease Agreement, a few steps are taken first. First, the tenant usually will come see the place, if they like the place they will fill out a lease application. The Landlord then reviews the lease application and will run a background check. Typically, there is a small fee associated with the application. Next, the Landlord will verify the Tenant’s references and if all checks out a lease agreement is written up, signed and a fee, and the Tenant pays the security deposit, any additional fees and first month’s rent.
The security deposit is an amount paid by the Tenant to the Landlord at the start of the Lease and is returned at the end of the lease term to the Tenant, minus any damages caused to the property. However, the Landlord cannot deduct any amount for normal wear and tear. If the Tenant cancels the lease before the lease term or is evicted, the security deposit may be lost.
At the time of moving in, certain states require a Move-In Inspection. Usually, the tenant and the landlord go through the property and write down any damages or repairs that the property needs. This ensures that the Tenant is not held liable for any damages at that it did not case at the end of the lease. The following states require a move-in inspection: Arizona, Georgia, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Montana, Nevada, New York, New Hampshire, North Dakota, Virginia, Washington, and Wisconsin.
At the end of a lease term, the Tenant may decide to move and must give adequate notice of this to the Landlord. If the Tenant wishes to renew and the Landlord agrees, they will agree to an increase in the rent amount typically.