Renting property to another person can be an intimidating prospect. The best way to handle this process is to have a lease created that specifically addresses potential problems that may arise and lays out specific rules that must be followed by both the landlord and the tenant. By creating a lease and having both parties bound to it, many problems can be avoided, or at the very least, handled more efficiently and effectively.
In order to best protect both the landlord and the tenant, a lease should be tailored to the specific needs of each party involved and should be carefully reviewed before either party commits to its terms.
Whether you are considering renting property yourself, or if you are a tenant looking for a property to rent, the following lease provisions should be carefully considered.
1. The Essentials
Every lease should at a minimum contain the name of the parties involved, their relationship to each other (i.e., the landlord and the tenant), the date that the lease is entered into, the date the landlord must give the tenant possession of the property, the address of the specific property, the agreed upon rental price and any other fees that might be assessed, the term of the rental agreement, and the means in which either party must provide notice of any material changes (such as a written 30-day notice on behalf of the tenant prior to termination of the lease).
2. Eviction
The lease should state specifically what types of actions could result in eviction. Actions that typically are sufficient grounds for eviction include non-payment of rent, criminal conduct on the premises, or a breach of any of the lease provisions. There may be additional reasons for evictions that the landlord should specifically state within the lease to ensure there is no confusion between the two parties.
3. Repairs and Maintenance Provisions
The lease should contain a provision discussing how a tenant can report any maintenance problems or need for repairs to the landlord. Having a specific system in place ensures the landlord receives all requests in a timely manner and leaves little room for doubt as to whether a tenant provided notice of an issue or not. Similarly, it protects the tenant by providing a means to prove that the landlord was notified of the problem if the issue should ever come before a judge.
The lease should also detail how long the landlord has before the problem must be repaired. While Utah law requires landlords to make any repairs that threaten the health or safety of the tenants within a specific number of days, other repairs should still be remedied within a reasonable period of time. The best way to ensure both parties agree on the definition of “reasonable time” is to define this term within the lease itself.
Similarly, the lease should state what the landlord is responsible for repairing and what the tenant is responsible for repairing and/or maintaining.
4. Breaking the Lease
The lease should outline how a tenant or landlord can terminate a lease early, and what fees or notices are required. There should also be a provision that states when a lease can be terminated without any fee being incurred. There are certain situations in which the landlord is prevented from charging an early termination fee, such as if the tenant is the victim of domestic violence and needs to move for their own safety.
5. Increase/Decrease in Rent
Along with stating the specific amount of rent and when it is due, the lease should discuss when, if ever, the landlord can raise or lower the rental amount. By having this provision in writing, the tenant will be assured that any changes in rent will not come as a surprise. This provision should also include a term that states when, or how, a tenant may be able to extend the terms of their lease.
6. Utilities
The lease should state who — the tenant or the landlord — is responsible for obtaining utilities and for paying the utility companies directly. If the landlord is responsible for providing utilities, the lease should also contain the cost of each utility that will be charged.
7. Common Areas
If there are common areas around the rental unit, the lease should describe specifically which areas are considered “common areas” and the tenant and landlord’s respective responsibilities towards their maintenance.
8. Fees
This is an important provision that many people gloss over. Before signing a lease, both parties should be aware of when fees beyond the rental fee can be charged and how much these fees will be. A general example is a fee charged for late payment of rent. If a late fee provision is in the lease, it should state when the fee applies (how many days after rent is due), how much the fee is, and whether it is a flat fee or a fee applied each day the rent is late.
Other fees that may be included are fees for cleaning, fees for breaking certain lease provisions, and/or fees for pets.
9. Bugs/Pest Control
The lease should state who is responsible for pest control. In some instances, an infestation of certain pests can constitute a health and safety hazard to the tenants. When this occurs, it is often the responsibility of the landlord to restore the rental unit to a safe condition.
10. Pets
Service animals are not considered pets under Utah law. Therefore, if a person has a service animal, the landlord may not charge any additional fees or rent. Similarly, a landlord may not refuse to rent an apartment to someone who has a service animal citing a no-pet policy.
If pets are allowed, there should be a specific provision stating what type of pets are allowed, whether there are any breed or weight restrictions, and what type and amount of fees can be charged in addition to the usual rental amount. In some instances, a landlord may also reserve the right to change the pet policy or to request that a specific pet be removed from the unit if it causes too many issues.
11. Hotel Bills and Moving Costs
There is no law that requires a landlord to reimburse a tenant for any hotel bills or moving expenses incurred if the unit becomes uninhabitable through no fault of the tenant. The tenant may be able to have rent abated for the period when the unit was uninhabitable or may request a refund of rent. However, if a landlord does not willingly abate or refund rent, the tenant would be required to sue the landlord in Small Claims Court. To prevent this, include a lease provision that outlines how rent will be abated if the unit becomes uninhabitable through no fault of the tenants.
12. Services Instead of Rental Fees
In some circumstances, the tenant and landlord may agree that the tenant will provide services in exchange for living in the unit free of charge or in lieu of a deposit or fee. These agreements are legal, but if they are not in writing, they can be very difficult to enforce. Without written proof, the landlord can attempt to evict the tenant for non-payment despite any services the tenant has already rendered. Any such agreement should always be put in writing, preferably in the lease.
13. Mediation/Arbitration Clauses
The lease should state whether arbitration or mediation is required to settle any disputes between the tenant and the landlord. If there is such a provision, it should also state who is responsible for paying for the cost of the mediation/arbitration and if any specific organization should be used.
While these provisions should be considered by anyone entering into a lease agreement, this list is not exhaustive. If there are any unique circumstances that either party wishes to include in the lease, it should be added as a written provision prior to either party signing the lease agreement.
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