Most Kansas residents enter into various agreements throughout their lives. Sometimes, the agreements are casual enough that you may not even consider the fact that you made an agreement. On the other hand, some arrangements may need a more formal approach, and if you are considering becoming a landlord, having a lease agreement could work in your best interests.
Renting out residential or commercial property can offer you a way to earn a relatively passive income. However, being a landlord can come with its own challenges, and you certainly want your tenants to understand the terms of your lease agreement. Though verbal agreements may stand in a variety of situations, in order to better protect yourself, you may wish to create a written document.
Rental agreement vs lease agreement
To ensure that you cover the correct terms, you may want to understand the difference between a rental agreement and a lease agreement. Generally, rental agreements cover a shorter period of time than a lease. Additionally, the terms of a rental agreement could change if you choose and if you provide your tenant with notice.
With a lease agreement, the terms cover a longer time period, typically around six months to a year. The terms of the agreement usually cannot change until the rental time period is over or unless the tenant agrees to the changes in writing.
When creating your lease agreement, you may want to include certain specifics. These details can help explain what tenants could expect from you and what you expect from your tenants. Some information and terms you may want to consider include:
- Your name
- Your tenants’ names
- Length of occupancy term
- Rent payment amount
- Pet policies
- Utility coverage
- Number of allowed occupants
Depending on the type of property and your specific circumstances, you may feel the need to include more particular details. However, if you do so, you may want to ensure that the terms you include are enforceable and do not violate any state laws.
Though creating a lease agreement could help protect you as a landlord, the possibility for disputes does exist. In some cases, issues could be great enough that legal action is necessary. If you feel that a tenant has violated the terms of the lease or otherwise caused considerable problems, you may wish to explore your legal options.