Very often, a dispute arises from a rental agreement. The property can be residential or commercial, but that doesn’t really matter. Dispute still arises anyway. It is the nature of rental agreements that gives rise to disputes. Here’s why disputes are so common when it comes to rental agreements.
A rental agreement is a legally binding contract between the tenant and the landlord. The problem with such an agreement is that there is often a difference in terms of expectations. For example, the landlord may have certain terms such as not allowing pets on the property. If such terms are not set out in advance, there is a potential dispute, waiting to spring up.
And when you really spend some time mulling over a rental agreement, you quickly realize that it’s all too easy for disputes to arise. It doesn’t matter if you are the tenant or the owner. When there are disputes, you will be affected.
Every little detail is like a time bomb, waiting to go off. Who pays for utilities? What is responsible for repairs and maintenance? Is cooking allowed? How many occupants are allowed? All these details should be clarified as soon as possible.
It’s always tempting to take the easy way out and simply complete the deal with a verbal agreement and a handshake. Although a verbal agreement is still legally binding, it is difficult to enforce. After all, there may not be anyone around to witness the entire verbal conversation. And it will be difficult for the court to determine who is telling the truth and who is not.
So instead of taking the easy way out, always be prepared to put everything down on paper. There must be at least two copies of the rental agreement. Both parties must agree to the terms and sign them. And then each one will keep a copy of the rental agreement. The agreement thus becomes a rental agreement, which is enforceable by law. In the event that one of the parties breaches the contract, the aggrieved party may take the matter to court.
Some people like to use freely available rental contracts. However, these are usually just generic templates and contain minimal information. A better option would be to purchase a set of professionally written rental agreement forms. For a very reasonable price, you will be able to instantly download a rental application form, rent receipt letter, move-in/out form, and standard residential lease form. These forms will contain all the necessary details.
For example, you will be able to specify details such as the names of all tenants, the number of occupants allowed, the length of the lease, the amount of the rent, etc. You can even specify how rent is to be paid and when it is due.
In other words, the forms set out as clearly as possible the details that govern the relationship between the tenant and the landlord. This is to ensure that should the documents need to be produced in court, the contracts will be legally binding.
When it comes to business contracts, there is no need to take unnecessary risks. Disputes happen often, and they can happen to you. So protect yourself with a set of contracts that fully comply with the property rental laws that apply to your state, city or town.