The Importance of a Rental Contract

When your renters move out and leave a pigsty, what are you going to do about it? Clean it up and not complain, if you didn't get a rental contract.

Take Martin, for instance. He had a nice duplex he wanted to rent out. He was smart and screened his applicants. But when they moved in, he didn't worry about a rental contract. He used a generic contract he found in the library.

The problem was, the generic contract didn't address everything Martin needed to be concerned about. His new renters started storing flammable materials in the little lean-to garage attached to the house. One day, some kids found it and decided to set it on fire. Martin lost the entire duplex. Though it was insured, the renters on the other side of the duplex sued him for damages, and won. Martin wound up with nothing.

No one wants to have this situation happen to them. Make sure you get a really good rental contract. You can download one at legalhomeforms.com.

Above all, once you have a good rental contract, don't let it lapse. And amend it whenever you need to cover something else in the agreement. If outside pets never occurred to you, change your standard rental contract to cover them. Or if you suddenly have realized that allowing the fireworks vendors store their stock in your lean-to shed is a bad idea, include their liability in the next contract you sign. A rental contract isn't just an agreement for someone to pay you money; it's your way of covering your behind in case the worst happens.