A rental agreement is a legal document drawn out between an owner and the tenants. It lays down the terms and conditions which determine the relationship between the landlord and the tenants. Here are some important points to remember while drafting a simple rental agreement.

10 Points To Include In A Simple Rental Agreement

Tenant Names

Besides the owner and the actual tenant, make sure you register the names of all the members who will be staying in the rented house, including children.

Rental Period And Renewal

Clearly specify the term of the rental agreement. You also need to mention the renewal policy and notice period for premature termination of the agreement.


The agreement should clearly mention the agreed rent amount, the due date for monthly payment, and the payment procedure-whether it’s a bank transfer, or payment by cash or check. In case of late payment, specify the grace period and fine amount, and also mention liabilities for check bounce.

Security Deposit

Specify the amount being deposited as a security, the return policy, and deductions for painting the house or any damages. Also, mention the date or time period within which the owner is supposed to return the deposit.

List Of Things

Include a list of things that come along with the property like the number of fans, light fittings, geyser, and other appliances.

Maintenance Fee

Clearly specify the liabilities of the tenant as well as owner for maintenance and repair. The tenant has to generally cover minor repairs, while the owner pays for any major maintenance work. Damages caused by tenants are to be fixed by the tenant. Chart out a garbage disposal policy, and make sure any preexisting damages are mentioned in the agreement as “preexisting”.


Identify the various utilities available in the house, and specify the payment policies for these utilities. Mention if the tenant will have separate meter, a shared meter or a sub-meter. Mention the policy for dividing the cost of shared utilities. In case the cost is included in the rent, specify it and mention that the owner is liable for the bills.

Restricted Entry

A simple rental agreement should also clearly demarcate the areas that come under the rented premises. Entry restrictions to particular areas, parking policy, and the use of the garage should be clearly written in the agreement.

Guest Policy

The owner may not charge a “guest fee” for a reasonable number of guests visiting for a reasonable time. However, certain owners are very particular about guests. It’s always better to have a guest policy in the agreement. The number of guests allowed, their duration of stay, and guest fee applicable, if any, should be mentioned in the agreement.

Pet Policy

If the tenants have any pets, this should be mentioned in the rental agreement. Many owners have strict policies for pets including the type of pets permitted, breed, weight, and the number of pets. In case pets are not allowed, it should be mentioned in the agreement.

A well prepared simple rental agreement will prevent any future disputes or disagreements between the owner and the tenants. Make sure you include all the points mentioned above.

Have more points to share with us? Let us know in the comments below!

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