Not having a lease agreement can create unnecessary conflicts with renters. Verbal agreements can be subject to misinterpretation or simply forgotten, and might leave you legally unprotected. Having a written contract limits disputes. 

A lease agreement must be created with the right terms and conditions. It should outline both parties’ rights and responsibilities, and include required disclosures and clauses. Everything must be specific and clear, leaving no room for loop holes. A lease agreement must be signed by both the landlord and the tenant. 

If renters have questions about what is allowed on the property, such as subletting, they can flip through the lease for answers. As such, rental agreements reduce inquiries to landlords and saves everyone time. 

How to Create a Lease

Landlords may choose to write the lease agreement themselves. There are a number of templates online landlords could rely on, but those are often generic. You should aim to have a lease that is specific and that reflects exactly how you want your property to be used. As such, it’s advisable to hire a property management company to help you with the process. 

Property managers have vast experience in the industry and will help you craft a document that suits your needs, with all the necessary provisions and clauses. They can protect you and your investment by ensuring your lease agreement remains compliant with local regulations and Nevada landlord-tenant laws. 

The Purpose of a Leasing Agreement

A lease is a vital contract. Its objective is to get both parties to agree on the rental terms and obligations included in the document, and minimize potential conflicts or misunderstandings. 

Should any conflict ever escalate into legal proceedings, the lease agreement can act as relevant proof to keep yourself, your home, and your investment safe.

Basic Provisions to Include in a Lease

Though lease agreements may vary, its essence and purpose remain the same. All effective rental agreements should contain the following items: 

Names

The complete names of both parties—the landlord and the tenant(s)—must be clearly stated in the lease agreement. 

Address

The full rental property name and the apartment address, including the unit number, must be displayed to prevent any confusion. 

Rent Due Date

It’s crucial to state when rent is to be paid by the tenant. Dates should be written in full to avoid any misinterpretation, such as June 1, 2023. This may minimize issues over rent payment, as it can eliminate loopholes and inspire renters to pay their apartment dues on time.

Rent Amount

It’s good practice to write down the figures and words of the rental amount to be paid. If you need to collect any additional fees, such as pet rent, it’s best to state it in a separate section to limit misunderstandings. 

Rental Term

The rental term must be clear and specific. For instance, you might indicate the rental duration begins on May 1, 2023 and ends on April 30, 2024. Recording full dates prevents cases of overstay. Relying on phrases such as “one year” or “six months” to describe the term of the lease can create loopholes. 

Signatures

Signatures are a crucial part of any rental agreement. If both parties sign the document, it shows the landlord and tenant(s) have mutually agreed to the terms outlined in the lease, and are legally obligated to respect them. 

Important Clauses and Policies to Include

Clauses tend to be fairly standard among leases, as they are guided by state laws. Below are some clauses you may want to include in your apartment’s lease agreement: 

Subletting

Make it clear whether subletting will be allowed on your property or not. If so, state whether a written request should be provided before letting in a new resident, and any other rules that might apply.  

Property Access

While landlords may occasionally need access to the apartment, be it to conduct inspections or address necessary maintenance, Nevada laws mandate that tenants be notified prior to entry. As a landlord, you strive to create good relationships with your residents, so make sure the lease is clear and specific regarding property access. 

Tenant Obligations 

Tenants should be informed of their responsibilities when it comes to taking care of the property and keeping it in good condition. 

Breaking of Lease

Landlords can specify the grounds under which residents can justifiably break a lease. It’s important to remain compliant with Nevada law’s accepted reasons, and specify if you’ll allow additional justifications. 

Security Deposit 

Clearly state the security deposit amount. Make sure to outline the process and conditions for refunding the deposit so renters know when to expect it and how it will be returned. 

Required Disclosures

Certain disclosures must be made by landlords, as required by law. Here are some of them:

1. Bed bugs. If a rental property has bed bugs, the renter should be warned and instructed on ways to prevent or solve it. 
2. Radon. As a harmful substance, the tenant must be informed about it. 
3. Flood zone. Residents must be notified if their apartment is situated in a flood zone.
4. Lead-based paint. For apartments built before 1978, tenants need to know that exposure to lead paint may be possible. 

Bottom Line 

The best lease agreements are detailed and clear. If written correctly, it should minimize potential issues and grant you peace of mind as a landlord.

If you’re seeking a reputable property manager to help you craft a solid lease, contact B&R Property Management today!