LEASE AGREEMENTS
LEASE AGREEMENTS
Essential Elements of a Lease Agreement
To avoid confusion or legal complications, Smee outlines several key elements that every lease agreement should include:
• Rent Payment Terms: Clearly state the rent amount, escalation clauses, due dates, and accepted payment methods. This eliminates potential confusion or disputes about payment.
• Deposit Terms: Specify the deposit amount, the conditions for returning it, and how it should be held, in accordance with the Rental Housing Act. Deposits must be placed in an interest-bearing account, with proof of the deposit available to the tenant upon request. The deposit must also be refunded within a reasonable timeframe, minus any deductions for damages.
• Maintenance and Repairs: Outline the landlord’ s responsibility for maintaining the property and the tenant’ s obligation to report any issues promptly.
• Termination and Notice Periods: Clearly define the notice periods for both parties when terminating the lease.
• Lease Duration and Subletting Rules: Specify whether the lease is fixed-term or month-to-month, as well as the rules regarding subletting and short-term rentals. Landlords should explicitly prohibit services like Airbnb unless consent is granted in advance.
As Smee explains, subletting or short-term rentals often lead to disputes if they are not clearly addressed in the lease.
“ To avoid potential risks and complications, it’ s best to prohibit shortterm letting without prior consent,”
81