A rental agreement is a legal contract between the owner of a property and a tenant who desires to have temporary possession of the property.The agreement identifies the parties, the property, the term of the rental, and the amount of rent for the term. The owner of the property may be referred to as the ‘Owner/Landlord’ and the renter as the ‘Tenant’.
A landlord with no clear agreement written create lot of trouble for himself. Every small disagreement ,whether it’s over repairs, the fee for a late rent check, or deductions made from a departing tenant’s security deposit , has the potential to escalate into a nasty legal battle.While oral promises can be legally binding, it can be difficult to prove them to a judge.
A rental agreement establishes a tenancy for a short period of time, usually one month. A month-to-month rental agreement is automatically renewed each month unless Owner or Tenant gives other the proper amount of notice (typically 30 days) and terminates the agreement. Owner may increase the rent, change other terms of the tenancy, or terminate the lease on relatively short notice (usually 30 days) depending upon the terms of contract.