Property transactions like buying, selling, and renting have some legal requirements. Owners of rent apartment Calgary rent out in a professional way to generate an additional stream of income. Since it is a kind of business for the landlords, they take all professional measures to ensure that they comply with the legal process by entering into a lease or rental agreement with the tenant that clearly defines the relationship between the two parties and protects the interest of both.
Why is the lease or rental agreement so much crucial for rental properties will become clear from this article that specifies the document’s features that are of much legal importance.
The rental agreement explicitly mentions the rent amount payable every month and indicates the due dates for payment so that there is absolute clarity about the deal. In addition, it will help to avoid delays in rental payments as the tenant is aware of the monthly financial commitment.
Responsibility for maintenance
A property will require periodic maintenance, but the responsibility for maintenance is mentioned in the agreement. Minor ongoing repairs like replacing a busted light bulb or fixing some minor plumbing leaks are usually the tenant’s responsibility.
In contrast, major repairs like broken doors and windows are the responsibility of the landlords. In addition, maintaining all functional systems of the property like electricity, plumbing, air conditioning system is the responsibility of landlords. Still, there must be a process in place to assist tenants with whatever little maintenance they might have to do.
List the utilities
Utilities are usually included in the rent and mentioned in the agreement so that tenants know what they are likely to get n exchange for the rent. Since utilities and amenities go hand in hand, the tenant can weigh it with their needs to justify the rent they pay. In addition, stating the utilities in the agreement will help to understand if anything extra is payable to access other utilities.
The two most important features of the lease agreement are the rent amount and the lease term or the tenure of the agreement. Stating the tenure of the agreement helps the tenant decide the suitability of the terms. For example, if you are looking for a 6-month rental, a 2-year contract would not suit you. Although the tenant is most likely to fulfill the tenure of the agreement, there must be an exit clause in the agreement that stipulates the condition of premature termination of the contract, which might attract some penalty.
Landlords ask for a security deposit that acts as damage protection. Tenants pay it to mark the commencement of the lease deed. The terms of paying the security deposit and how the tenant will get it back must be mentioned in the agreement. Usually, handing over the property back to the landlord in damage-free condition would make the tenant eligible for a full refund of the security deposit.
Moreover, whether pets are allowed, conditions for a rent increase and the tenant informed the landlord about events like going on vacation or allowing a guest to stay for an extended period should all find mention in the agreement.