If you own real estate and intend to rent it, you must define what type of agreement you want to use according to the conditions and responsibilities that your future tenants will be able to enjoy.
In these cases, it is good to have a model letter to the tenant so that they pay the rent on time. Yes, although there are those who look for apartments that accept low credit scores, or pretend to know how to rent with a bad credit score, you as the landlord must take care of your assets.
Although the terms basic rental agreement and residential lease are erroneously used as synonyms and their points of convergence are many, you must recognize their differences. Do you feel confused? No problem, by recognizing their differences you will know what type of agreement to adopt for the rental and care of your property.
What is the difference between leasing and renting?
The differences are not many, which is why occasionally some people use the terms in the wrong way. The main difference is that the Basic rental agreement is an agreement that can be renewed from time to time, specifically, on a monthly basis if the interested parties so agree.
On the other hand, the residential lease is a document that can be signed on a long-term basis. The term can vary according to the negotiations that the parties have reached, so you can get models that reflect a contract of one month, six months, or more than a year.
Another big difference is that the BRA is an agreement that, through oral agreements, the parties can stipulate the renewal for a few more months, since it is automatically renewed after each payment. While in the residential lease, the agreement must be signed again at the end of the determined period.
In addition, the BRA, as its name says, is a basic document, therefore, somewhat simpler, while the RL can have as many clauses as you wish. The latter will not only avoid major problems but will also delimit exactly the responsibilities and obligations of the parties.
Basic rental agreement or residential lease: what is better?
It will depend on what you want as a landlord. In the previous lines, we explained the main differences, so if you want a simple document, which only expresses the basic obligations and responsibilities of each of the signatories, without constantly renewing them, this model is for you.
If, on the contrary, you want to define well what the tenant can do inside the property you are renting, you can add the clauses you want or that both parties agree on, for the protection of the property.
So, if you are a flexible person, the BRA is a good option for a rental agreement. On the other hand, if you need a stable income, the RL is the ideal document for you to sign a rental agreement.
How long is a lease? Is there a one-month residential lease agreement?
Yes! If you wish to rent your property on a month-to-month basis, there is a model called a month-to-month lease that is renewed monthly and without the need for further protocols.
It is necessary that you have a copy of the month-to-month termination laws since this jurisprudence governs this agreement. In it, you will be able to get the conditions of renting a house under the month-to-month lease that governs each state.
What should a simple BRA include?
Considering that it is a simple document that, by custom, is used for monthly rentals and no renewal is necessary as long as payment is made on time if you wish to draw up a contract of this type it should contain, at a minimum, the following information:
- Identification of the parties (full names and legal ID)
- Address of the property
- Amount to be paid and the conditions (fixed day of payment)
- Duration of the contract
- Security deposit
- Terms and conditions of the agreement
- Clauses in case of damages and repairs to the property
- Clauses in case of renewal or termination of the agreement
- Signature of the parties
When is a simple one-page lease agreement needed?
Any landlord who wants to be accurate needs a simple one-page lease agreement. However, this is a more extensive document; therefore, it is one of the most recommended in real estate, since you can include as many clauses as you agree with the other party.
The purpose of this document is to protect the property and that each of the parties involved fulfills their responsibilities and obligations; therefore these are some of the parts that you will get in some RL:
- Name of the tenant and landlord
- Address of the property (town and city)
- Duration of the agreement
- Amount of rent
- Monthly payment date
- Start and end date of the agreement
- Amount of fees in case of delay (here you must specify up to the days of delay)
- Security deposit
- Signature of the parties
Where can I get models of both documents?
Both are widely available on the Internet. Depending on the platform you choose, you will be able to acquire them for just a few cents.
It will also depend on the number of clauses you want it to have, since some landlords include provisions that, for example, limit the number of pets or include more responsibilities and obligations to the tenant.
The more clauses and conditions the agreement has, the longer the document will be and the more responsibilities and agreements the parties will have to comply with. And if it is your first time being a tenant or landlord, you can seek help for the drafting of the agreement.
You must are informed about the legislation of each state since some do not allow you to make any changes to the RL agreement and, in case you want to do so, you must notify the tenant 30 or 60 days before. This applies to any type of change in the document. Here is a model that may be useful for you.
If I am a tenant, can a landlord increase my rent or evict me if I signed an agreement?
Technically, yes, but depending on the type of agreement, they must do it within a specific period of time. If as a tenant you signed a BRA, the landlord can ask you to vacate at any time and also increase the rent without notice.
Whereas with the RL, you must be informed in advance and wait until the end of the month or the end of the lease to move out. In case of increasing the rent, they can only do so one month before the end of the agreement and with prior notice.
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“Free Month-to-Month Rental Agreement Template – PDF | Word – EForms.” EForms, https://eforms.com/rental/month-to-month/#month_to_month_lease_laws
“Free Simple (1 Page) Rental Lease Agreement | PDF | WORD | RTF.” OpenDocs, https://opendocs.com/lease-agreements/simple/
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“OKLAHOMA REAL ESTATE COMMISSION.” Oklahoma Gov, https://oklahoma.gov/content/dam/ok/en/orec/documents/contracts-and-forms-page/documents-from-grant-november-2020/Residential%20Lease%20(11-2020).pdf
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