What Makes a Rental Agreement Form So Important?

A rental agreement is a type of document that is signed between a landlord and a tenant, and is meant to indicate that the renter can stay in the property or use it for some specific purpose – such as for a commercial purpose, if needed. This is used in most states in the US these days, and the practice is prevalent in many other countries too. There is rental agreement template available online, and these can be used to prepare rental contract forms for actual usage. Here are some of the main reasons why a rental agreement form is so important.

Legally binding

This kind of agreement is actually legally binding, and it can be used in a court of law. Such a contract is useful for legal purposes, and can help resolve in any problem. It sets out all the rules that Lessee and Lessor are supposed to follow, in an attempt to honor their relationship. This is a legally valid contract and serves as a very practical document which consists of many vital details about business. It can mention the length of time for which the property can be occupied by the tenant, as well as the rent amount that is due every month.

Specifies the Security Deposit

A security deposit can be regarded as a damage deposit. This is actually a sum of money that the landlord takes from the renter, upon the start of the lease period. Most landlords tend to ask for deposit of some type. The renters must have a clear idea regarding the time when the money would be given back to them, as well as the situation under which the sum would be returned. A full deposit is returned only by a few landlords after the apartment is checked and found to be damage-free, or found to be satisfactorily cleaned up.

Lease Termination and Moving Out

It is essential to know what will happen when the initial lease term would end. Renters will have the option of extending the same, or how to stay for more time after the lease agreement comes to an end. The terms for moving out need to be specified – like the amount of notice that the landlord needs to give in advance, as well as what would occur in case you need to move out prior to the expiry of the lease period.

Repairs and Maintenance

In case there is a need to replace the light bulb, the renter needs to do it. However, there must be a clear mention about who will deal with repair and maintenance problems of a bigger type. Most landlords can be expected to be responsible for fixing things such as AC, heater, plumbing system etc. However, when it comes to the process, there should be a mention of that as well. Does the landlord expect the renter to make payments for the repairs, and get it back from him later, or he will deal with the repairs? The lease needs to mention the frame of time within which the landlord consents to make the repairs.


Utilities may add a lot to your monthly rent. At least a few utilities are included by many landlords in the rent. The Texas lease agreement should mention the kind of utilities that should or should not be included.

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