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What should a lease contain, legal format

A leasing contract it is what you need when you rent a residence or a business. For the contract to be enforceable, it must contain a legal format, which means that it must consist of essential parts for the benefit of the tenant as well as the landlord.

For this reason it is important that you know the parts so that you can write it correctly if you are the owner of the property or the tenant, because you must check that the contract you sign contains all the essential parts.

Essential parts of a lease

Therefore, if you are the tenant or landlord, make sure that the contract you sign contains the correct format and parts, such as the following:

  1. The full names with surnames of the landlord and the tenant are essential because it indicates between whom the contract is carried out with its rights and obligations.
  2. The rented property must be described indicating its address with its number as basic details, since depending on the contract, a complete description of the property to be rented may be necessary.
  3. It is important that the rental value is indicated in the contract followed by the day on which the amount will be charged or must be sent to the owner.
  4. The contract has an end date that must be specified, that is, the beginning and end of the lease must be stated in the contract.
  5. The lease can be terminated under certain circumstances that must be specified, for example for non-payment over a certain agreed period. In the event that it is the tenant who terminates the lease, the time in advance must be specified, that is, a prior notice of a certain number of days, in which case there is no penalty, otherwise there may be a penalty of a percentage to be agreed between both parties.
  6. In every contract there is a guarantee deposit by the tenant that must be specified with its amount and refund in the circumstances indicated in the contract.
  7. A clause is added for late payment of rent including the corresponding percentage on the amount that was agreed.
  8. It should be indicated who will be responsible for the payment of public services, since while some may be the responsibility of the tenant, others correspond to the owner of the property.
  9. A property rented as a residence may accept guests to present as a property rented as a business allows guests to present. But if those people are permanently installed, they are not considered as guests but as occupants, which can be prohibited in the contract.
  10. The owner of the property has the right to decide whether to accept pets or not, but it must be indicated in the contract, the type of pet that is accepted and the amount, otherwise it means that he does not accept the permanence of pets on his property.
  11. During the term of the contract, the property may suffer damage, therefore it is necessary for the owner to specify which damages will be borne by the tenant and which ones the landlord must solve.
  12. A clause must be added that specifies the permission of the landlord to enter the property to verify that everything is in order as it is stated in the contract, which will be done through a notice given in sufficient time as prior notice.
  13. During the lease, problems of all kinds can occur, therefore the contract must indicate the means by which these disputes between tenant and landlord will be resolved.

Optional parts in the lease

While there are essential parts to a leasing contract, you can also add additional or optional parts such as:

  1. As long as the tenant complies with everything foreseen in the contract, he has the right and priority to renew the contract when the foreseen term ends.
  2. Subletting is not the most common, but the owner can establish permission for the tenant to sublet the property, according to the provisions of the contract.
  3. If the property has its own parking, it can be rented with an agreed value and included in the rental value.
  4. The owner can prohibit the permanence of dangerous objects inside the property or on the contrary allow it with an additional payment in the guarantee deposit or with the payment of a corresponding insurance.

Rental lease contract

The lease of a home is the one that is carried out for the purpose of the leasing party, that is, the owner of the property can assign the use of their property making it available to the tenant or tenant, who will occupy it as their habitual residence in consideration of a payment or rent whose value is established in the contract.

  1. The contract is a document with clauses that regulate the conditions of the lease and its acceptance with rights and obligations attentive to both parties.
  2. In general lines, it also contains the place and date, the names and surnames of both parties, the value of the rent, the attribution of expenses, the form of payment, the introduction of a guarantor or endorsement and the right to acquire the property in in the event that the owner decides to sell it.
  3. For the contract to have legal value and be enforceable, it must be signed by both parties in agreement or their representatives with an authorization or power of attorney that enables them to sign.
  4. The signatures must be placed at the end of the clauses of the contract and the left margin of each of the pages of the contract and its annexes if they exist.
  5. In the case of a home with furniture, the inventory of the furniture that contains the home can be added as an annex.

Lease contract model

On the one hand, Mr / Mrs. (names and surnames of the landlord), marital status (married / single, divorced), of legal age, (profession), domiciled in: street with number, floor and with identity document (Type and number) as landlord or owner.

And on the other hand, Mr / Mrs. (names and surnames of the tenant), (marital status), of age, (profession), domiciled at (street, number, floor and with identity document (type and number), as a tenant or tenant.

Gathered here, they recognize their civil capacity to contract and take on the obligations and especially for the granting of this HOUSING RENTAL CONTRACT, for which they act in their own name with the responsibility that enables them to express themselves by mutual agreement. They state that:

1º The landlord is the owner of the house located at (full address of the house that is rented), which lacks encumbrances and charges, occupants and tenants and is with the payment of taxes up to date according to what was declared under the responsibility of lessor.

2nd The tenant requests the lease of the aforementioned property for use as a habitual residence, which is accessed by the lessor.

3º Regarding this matter, it is formalized with the HOUSING RENTAL CONTRACT according to the following:

CLAUSES

FIRST.- This housing rental contract is agreed for a period of (number of years) from the day (beginning of the rental)

The contract can be extended if the tenant wishes for annual periods up to (number of years of duration of the extension)

The landlord will receive a notification from the tenant with a notice of (amount d months) of the term of the contract or of the extension in the event that it decides not to renew it.

SECOND.- If on the expiration date of the contract or if after three years of its duration, the parties do not notify each other 30 days in advance, the contract is automatically extendable for one year.

The extended contract will respect the same clauses of this contract.

When the contract or its extension ends, the tenant will abandon the house and deliver it to the tenant in the same conditions that he received it without the need for any notification.

The contract has a minimum duration of (number of months) After the minimum duration months have elapsed, the contract can be withdrawn with a prior notice of (number of days)

THIRD.- The contract will not be extended if, after one year, the tenant needs the house for himself or for a relative.

QUARTER.- The contract establishes a monthly rent of (amount in letters and numbers)

FIFTH.- In this act, the tenant gives the landlord as a legal guarantee (amount in letters and numbers) equal to the month’s rent as a guarantee.

SIXTH.- In this act, the landlord delivers the keys of the property to the tenant (number of sets of keys)

The contract ends with the signatures and clarification of the names of both parties and signatures on the left margin of each of the sheets and their annexes.