What should you include in a lease agreement?

On Behalf of | Sep 25, 2024 | Landlord And Creditor Services

Lease agreements play an important part in any landlord-tenant relationship. These agreements help protect your property and business interests. If any misunderstandings or issues come up, your lease agreement serves as a permanent record you can use as a reference or guide on how to proceed.

Recommended information to disclose in your lease

Simple one-page lease agreements generally only require the basic rental details. However, these agreements may not offer you much protection. For more comprehensive written lease agreements, it is recommended to include the following:

  • Terms of the lease: Indicate the type of lease as well. If it’s a fixed-term lease, include the length of tenancy or the start and end dates.
  • Address of the rental property: Unlike simple lease agreements, which only require a description of the premises, a comprehensive lease should include the property’s complete address.
  • Rental payment details: This generally includes the regular payments, total lease amount, frequency of payments, and how or where to pay.
  • Security deposit details: If you require a security deposit, include the pertinent information, such as the amount, how to recover the deposit and where the deposit will be held.
  • Landlord and tenant responsibilities: These can include pet policies, who pays for utilities and who takes care of maintenance or repairs.
  • Breach of contract rules: Include the potential consequences for rule violations, including eviction procedures.

Required notices in every lease agreement

There are a few absolute requirements to ensure your agreement is valid and enforceable under Michigan law:

  • Notice of Truth in Renting Act: This is a standard statement informing tenants of the law. Make sure it is easy to read and has a font size of at least 12.
  • Landlord’s mailing address: This is to ensure smooth communications.
  • Tenant’s obligation to provide a forwarding address: Indicate that the tenant should give you their address within four days of the end of their tenancy.

Consult a legal professional to ensure enforceability

It’s in a landlord’s best interest to seek legal assistance regarding lease contracts. An attorney experienced in landlord rights and the rental property business can help make sure you have an enforceable lease agreement. They can advise you on what to include in the agreement to help you avoid issues with the contract or your tenant in the future.