What Is a House Rental Contract?

A house rental contract comes in many names, but it is commonly known as a house rental agreement. It is a legal document written by landlords, homeowners, or property business owners to establish detailed, specific requirements for tenants who are renting their property. No matter what type of real estate you are renting out, either a vacation house or a forever house, a contract should be signed first before a tenant can move into the property. Additionally, a contract of this kind contains contact information, property rules, and legally binding signatures. To some, writing a contract is challenging. But it is easier than you think with the right tools.

You can use a template in making your own rental contract. Just make sure you get a contract template from reliable sources, which you can find online. One of the advantages of working with a template is it promotes consistency in your document. Because most templates come in with suggested content, you are no longer required to start from and take time thinking about what to include. We made it even easier at your end. Check out our collection above of ready-made templates made by professional writers and creative graphic designers. If you use one of our templates, you will be done with your task in no time. Let us take a look.

Meanwhile, based on a report published by the Bureau of Justice Statistics, there were an estimated 26,950 tort, contract, and real estate property trials in state courts for general jurisdiction nationwide in 2005.

Common Elements of a House Rental Contract

Because a service contract outlines the between the parties to a lease, real estate businesses and individuals need lease contracts for specific and various leasing transactions as well as rental service providers, and individuals who need rental contracts for specific and various rental arrangements and services. When making a contract, use the appropriate real estate terminologies. And it would be helpful if you know the difference between the two parties as well as the difference between a lease and a rental contract.

The real estate market often uses basic rental agreements interchangeably with lease agreements. Although both documents generally have the same provisions, rental agreements are often meant for shorter tenancy arrangements as well as short-term rentals of equipment and property for both professional and personal use. Hence, a house rental contract would generally include security deposit terms, due dates, property or equipment rules, and a termination clause. Make sure that you don’t miss out on any crucial provision while maintaining the conciseness of your content. Below are the common elements of a rental contract.

Title: Every important business document needs to have a title. Why? Because it makes your contract easily recognizable when it sits with other documents on top of your desk. What better way to distinguish a contract from an agreement is by putting a title on the topmost part of the document. In addition, make sure that the title is readable and tells the readers what the document is all about. Therefore, use a bold font style and make the title bigger in size than the rest of the words in the contract. You can even simply use “House Rental Contract” as a title.Parties: The next part of a house rental contract is the introduction of the parties involved. This is a very essential step in residential contract writing because it acknowledges the people who will take part in the lease term. In case the agreement is between two different companies, you can omit individual names and stick with the registered business names. On the other hand, if a rental contract is between two people, ensure to mention their complete names and refer them, either as a tenant or landlord or lessor and lessee. Their complete address can also be indicated if necessary. In the same section, mention the date when the contract is written to indicate the commencement date or the period when the contract is effective.Lease Term: This section of the contract specifies the property/equipment being leased. It should state the specific duration or validity of the lease. This is not necessarily similar to the commencement date because the lease term is the agreed-upon date when is allowed to move into the property. Also, it is stationary date landlords or property owners start counting for the payment. As a business owner, you can identify the applicable dates to kick-off as the start of the lease term. Still, the final decision relies on the contract agreement of the renter and the tenant.Terms and Conditions: As the most important part of a contract, take time when writing the terms and conditions. This section should lay out the terms of the lease, including the payment terms, security deposit, property rules, and other important provisions. In many cases, this part is could be overwhelming because of how technical it is. If you are to write the terms and conditions, it should not always favor your business. Otherwise, it would weigh on your tenant’s shoulder. Effective terms and conditions are provisions are balanced. More so, do not write too many provisions that it would look like a rule book. And use bullets point when enumerating the different terms and conditions.Signature: When everything is covered, the last step in contract-making is collecting both parties’ signatures. Signing the contract means you understand the terms and conditions heartily and will follow those to the best of your ability. Remember there are consequences if you breach a contract. In this situation, the landlord can initiate termination of contract or raise the matter to the law court. But it still depends on what is written in the contract. 

How to Make a House Rental Contract

Writing a house lease contract may seem complicated, but it is not exactly difficult to complete. Most of the time, it is a matter of lessors and lessees reaching a common understanding of what they require for the lease term. Since there is no specific law in many countries specifying lease contracts at present, the key concept of drafting a fully working contract is making sure it covers everything that you believe is applicable. However, it is important to note that a lawyer should read a draft to ensure that it conforms with the laws of the jurisdiction and that loopholes are eliminated before they create complexity.

Step 1: Include All Responsible Parties

List all the individuals occupying the leased property. This is to make that they are liable for any breach of the contract. And for the sake of being most information, include pertinent contact information such as addresses, telephone numbers, and email addresses.

Step 2: Be Clear will All Payment and Deposit

Emphasize how important all monetary provisions in your residential contract. Aside from the amounts of rent and security deposit, also include frequency of payment, penalties for late payments, acceptable mode of payment, and where transactions must take place, among other stipulations.

Step 3: Summarize Other Fees

In the rental contract, it is important to outline other fees or services that may come up during the lease term. Clearly indicate this and which party is responsible for each. Examples are utility bills, connection fees, or other charges from you or outside providers.

Step 4: Provide Relevant Clauses

Other clauses you should include are policies on how the leased real estate property can or cannot be used or occupied. This includes rules on subletting, pets, alterations, and the like. When all this is clearly detailed, the tenant will not have the chance to feign ignorance of the rules.

Step 5: Add a Clause Referring to the Termination of Contract

It is important to have something like an escape plan, while hopefully, this is not necessary. In case, provide a clause that gives you the right to terminate the lease agreement at any time and have the lessee vacate the premises at once.


What are the different types of contracts?

  • Sales Contract: A sales contract serves the same purpose as a receipt. It is a legal paper that records or documents the transaction between a seller and a buyer. It is an agreement the parties involved sign in return for products, services, or money. Moreover, a sales agreement details the background details of the people involved, the transaction, the responsibilities and rights of both parties, and statements concerning contingencies. The agreement gives both the seller and buyer what they should expect from their deal.
  • Performance Contract: A performance contract ensures that the delivery of action meets a company, a manager, or a businessman’s expectations. It is an agreement between a performer and his/her boss or client. Most often, there are penalties if a performer doesn’t meet the standards of an employer or a client under a performance agreement. In large corporations, managers use this contract as a tool to improve an employee’s work performance. Performers or venue owners use this agreement for weddings, shows, concerts, family reunions, and so much more. In the entertainment industry, you can also call a performance contract an entertainment contract, a music performance contract, or a band contract.
  • Construction Contract: If you are to work with a contractor for project construction, it is always essential to secure a construction contract first. A construction contract is a written document that obtains a summary of the terms and conditions, specifically the work that needs to be done to complete a project. This agreement is drafted by either the client, contractor, or a legal professional prior to the development or renovation of a building. A well-written construction contract outlines the roles and responsibilities of both parties until the project is completed.
  • Marriage Contract: A marriage contract or a marital contract is an agreement that legally binds a husband to one wife and a wife to one husband. Once a person is married, he/she can only legally leave his spouse by divorce, annulment, or death. Note that marriages happen between all cultures, genders, and races. Also, generally speaking, marriages can either be Catholic or Islamic.

Is a scope of work contract a contract?

Yes. A scope of work contract is an agreement between a contractor and a business that entails all the obligations of each party to one another. This document which is usually written by the contractor provides the range of activities that are needed to be done from the beginning up to the completion of the project at hand. Within the scope of a work contract, specific milestones and goals are listed. Aside from these, project management reports and deliverable specifications are identified and discussed as well.

What to consider in making a contract?

Contracts are created depending on what purpose it serves. In various industries, there are different types of contracts made for a specific use. It is no wonder how people know about these documents because they can be seen often in the workplace. For example, before you go on your first day at work, your employer will let you sign an employment contract. It is not just a piece of paper, it is an important employment form that sets out your work, expectations, salary, and more. Here are some of the common types of contracts you must be familiar with.

Nobody wants to get in trouble when it comes to managing a rental business. If there is one thing that you should have close access to, it is a rental contract. Every business success starts with a fair agreement between two partners. To achieve that, invest in making a working business contract. For more ready-made contract templates, visit our website now.