Rental management: how to write the rental contract ?

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Rental management: how to write a rental contract ?

How to write a contract for your rental management, without omitting the essential legal notices and essential protections ? For owners, this task can quickly become a challenge, with significant legal and financial issues. Indeed, a poorly drafted contract exposes you to costly litigation and potential conflicts with tenants. So what are the best practices for creating a contract that complies with legal requirements? This article provides you with the answers and guides you step by step.

The importance of a well-drafted rental contract: the mandatory information for your rental management

A poorly drafted rental management contract can lead to complications and disputes. This is why it is essential to be familiar with the mandatory mentions as well as the documents to attach. The mandatory mentions in a rental contract make it possible to clearly define the terms of the rental and the responsibilities of each party. If you do not want to draw up your contract alone, it is sometimes preferable to go through an online rental management professional.

Identification of the parties and description of the accommodation

From the first lines of your rental management contract, it is imperative to identify the parties involved. You must mention: 

  • The name and surname of the owner, 
  • The address of the owner,
  • The contact details of the manager,
  • The name and surname of the tenant(s), 
  • The name and surname of the guarantor(s) for each tenant.  

If you have left your rental management in the hands of a real estate agency, the latter must also be identified precisely.

In addition, it is essential to provide all the legal elements concerning the accommodation. This includes:  

  • The nature of the property (house or apartment), 
  • The number of rooms,
  • The facilities for private and shared use,
  • The duration of the lease,
  • The amount of any security deposit, 
  • As well as the surface area habitable. 

Regarding the latter, it is undoubtedly one of the most important mentions, because it is used to define the rental price of your rental management. Any error equal to or more than 5% of the number of m2 can lead the tenant to request a reduction in the rent. This is a legal procedure from which the owner cannot deviate. The description should also specify annexes, such as parking spaces or cellars, as well as the available equipment if you are renting a furnished property.

Definition of rental terms and rental management charges

One of the central points of the rental management contract governs the financial terms. Three key elements should be noted: 

  • The rent amount without the charges, 
  • The periodicity of payments that the tenant must respect, 
  • recoverable charges. These can be presented in the form of a fixed amount or provisions with annual adjustment. 

In addition, the rent review of rental management must be governed by a clear clause, stipulating the terms of rent reassessment and the frequency of this review. Note that the law stipulates that the rent can only be reviewed once a year by the owner. If you have not written this clause, you cannot reassess the rent, unless you have carried out improvement work on the rental property. 

Resolution clauses and their importance

In addition to the legal details that your rental contract for your rental management must contain, it is recommended to includetermination clauses in the rental agreement. These clauses allow the owner to terminate the lease in certain specific cases, such as non-payment of rent or charges, failure to pay the security deposit, or failure to take out rental insurance by the tenant. This type of clause protects the owner in the event of repeated breaches by the tenant.

Mandatory technical diagnostics

The owner is required to provide a technical diagnostic file (DDT) to the tenant. This rental management file includes in particular the energy performance diagnosis (DPE), the lead exposure risk report (CREP), the condition of the gas and electricity installations if they are more than 15 years old, as well as the natural and technological risk report (ERNMT). All these documents aim to inform the tenant about the condition of the accommodation and any potential risks. If the owner does not provide this document, the tenant can seek legal redress – particularly if the property is found to be dangerous. 

Other documents to be attached

In addition to the diagnostics, it is also necessary to attach to the contract a information notice on the rights and duties of the parties, as well asan inventory of fixtures at the start of the lease. The latter must be detailed, ideally accompanied by photos of the rental management and carried out in the presence of the tenants. Both parties must sign the document, certifying the date of handover of the keys. 

Finally, the owner must have the rental insurance certificate taken out by the tenant. If you live in a condominium, the owner must also provide an extract from the condominium regulations specifying the use of private and common areas. 

For example, some tenants rent a furnished property with a balcony, but privacy screens are prohibited by the property. Tenants cannot contravene them and risk a fine from the co-ownership if they do. 

Optional and customizable clauses in the contract

Although they are not mandatory, some optional clauses can be added to adapt to the specificities of each rental. 

For example, in the case of shared accommodation, a solidarity clause between the roommates can be provided. This means that each roommate becomes jointly and severally liable for the rent payments. Similarly, it may be useful to add an obsolescence clause, in particular to regulate future repairs based on the age of the equipment.

The duration and renewal of the lease

A rental contract must also specify the duration of the lease. The law imposes a minimum duration of three years for unfurnished rentals and one year for furnished accommodationwhen the owner is a natural person. It is possible to provide for a shorter duration in certain exceptional cases, such as the owner's planned return for family or professional reasons. This mention must imperatively appear in the contract and be confirmed two months before the end of the lease.

The terms of renewal

At the end of the lease, if neither party gives notice, the contract may be tacitly renewed. However, the landlord can also propose a rent review, provided that a notice period is respected and the tenant is notified by registered letter.

Precautions to take when drafting

When drafting the contract, it is essential to pay attention to common errors, such as the omission of certain mentions or the use of abusive clauses. For example, it is illegal to prohibit a tenant from hosting third parties or to impose automatic payment by direct debit. It is therefore recommended to refer to a lease model that complies with the Alur law to avoid any dispute.

Remedies in the event of a dispute

In the event of non-compliance with the contract by the tenant, the owner may initiate a lease termination procedure. However, before getting to that point, it is advisable to send a formal notice by registered mail to try to resolve the conflict amicably. In the event of a persistent disagreement, the owner can refer the matter to the district court.

Rental management: how to write your contract correctly

Drafting a rental contract is an essential step to ensure a peaceful relationship between the owner and the tenant. A well-drafted contract protects both parties and helps prevent conflicts. By complying with the mandatory notices, providing the required supporting documents and adding clauses adapted to the specificities of each rental, you put all the chances on your side for a smooth rental management.

To ensure the compliance of your contract, do not hesitate to consult a rental management expert or a specialized lawyer. A professional verification is always preferable in order to legally secure the rental relationship and avoid any unpleasant surprises in the long term.

Partner Article, the editorial staff did not participate in its writing
 

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Natasha Kumar

By Natasha Kumar

Natasha Kumar has been a reporter on the news desk since 2018. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining The Times Hub, Natasha Kumar worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my natasha@thetimeshub.in 1-800-268-7116