Landlord and Tennant Law – What a good lease should look like.

Lease agreements in general seem to be the most poorly drafted contracts in law. Often people simply use or purchase a pro forma agreement as the sole basis of their lease agreement. This often results in headaches later on for both the landlord and tenant, simply because the pro forma agreements lack the required clauses which afford both parties reasonable protection and are more often than not vague.

There are four essential elements which should be included in all lease agreements, these afford the parties certainty and clarity as to the legal relationship that exists between them and further serves to afford reasonable protection in the event that the relationship breaks down or something goes wrong.

The first clause that should be included is termed a cancelation clause. This clause should set out the procedure that should be followed should either party wish to terminate the lease. It should be very clear as to notification time periods, further it should express the form, manner and content of such notification.

The second clause that is essential sets out who is responsible for the upkeep and maintenance of the property. Here there will obviously be divergent views as to content depending on who is the landlord and who is the tenant. It is best if there is a balance of responsibility in the upkeep.

Generally this is achieved by stating that the landlord is responsible for the fixtures, such as plumbing, lighting and structural integrity while the tenant is responsible for the maintenance of the inside of the property as far as such excludes the fixtures. In other words the tenant is obligated to keep the property in the state that they received it in.

The third clause relates to the deposit. This clause should be clear as to the circumstances in which such will paid, the notification of such action and repayment upon cancellation. An important element of the above is that the tenant should insist that the deposit be put in an interest bearing account and that any such interest accrues to the tenant. This can help when the deposit needs to be used in lieu of damages, especially on a long term lease which can generate a sizable return in interest on the deposit.

The fourth clause that should be included should relate to renewal periods and the manner of such. Parties should ensure that this clear and concise.

There are other just as important clauses however the above mentioned ones are ones which are most commonly over looked. Should any dispute arise which cannot be settled via open communication than the party in question should contact an attorney for advice.


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