How to make a property rental contract? 4 tips for your safety

How important is a property rental agreement?

It is not uncommon to find property rental negotiations based on trust and conversation between the parties to the agreement.

In general, this occurs when owners and tenants look for ways to make the process less bureaucratic and thus facilitate the closing of the agreement.

But, we must remember that a rental agreement is a document that contains all the details about the rental agreement, including duration, requirements, conditions and rules for termination.

That said, making a rental agreement without a contract is practically basing the negotiation on trust.

However, based on countless experiences around the world, we know that trust may not work in this type of situation, after all:

The tenant may leave the property before the agreed time and leave the owner at a loss;
The owner can ask for the property to be vacated before the agreed time and catch the tenant off guard;
Damage to the property may occur, and there is no way of knowing who is responsible;
Among countless other problems.

Therefore, creating a property rental contract is essential to ensure compliance with the agreement, based on the legal requirements for this type of negotiation.

This way, you avoid headaches and losses for the parties involved.

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How to make a property rental contract?

At this point you already understand the importance of making a property rental contract, but you may be worried about the bureaucracy involved in the process.

It is worth mentioning that a property rental contract can be concluded through the signing of a simple document that contains the clauses of the agreement between the parties.

So, drafting this type of contract is not rocket science and does not require you to be a legal professional.

Below are 4 tips that will help you create this document without any difficulty.

1. Define the duration of the contract

The first step when making a rental agreement is to define basic information, which is the duration of the agreement.

There are rentals per day, per week, per month and even per year, and this must be specified in the contract.

This ensures that both parties are certain of the period during which the lease will take place, and when the agreement must be vacated or renewed.

This way, both parties are protected in the event of termination before the deadline, which can cause financial losses, in addition to being a huge headache for anyone caught unprepared.

It is worth mentioning that the duration of the contract directly affects the property's preservation clauses, after all, a years-long contract provides for different maintenance than a weekend rental, for example.

2. Stipulate the clauses

Although there are rules for this type of agreement, in general, a rental contract allows the inclusion of clauses defined by mutual agreement.

For example, if the tenant and landlord decide that renovations will result in a discount on the rent, this could become a clause.

The same applies to the acceptance of animals in the property, there may be a prohibition clause or acceptance with conditions, to be determined by the negotiating parties.

Whatever the request, as long as it is within the law and respects the dignity of the other party, it is possible to establish it in a contract through clauses.

So, determine what is non-negotiable, what can be negotiated, and how this type of debate should take place, and put all of this into clauses in the contract.

3. Remember to check the law when making a property rental contract

Many landlords already provide ready-made contracts to potential tenants, so some end up signing them without knowing that there are clauses that violate the law.

Therefore, when making a rental agreement, it is essential that you pay attention to the so-called Tenancy Law, which determines the rules for this type of agreement, and which behaviors are abusive and illegal.

It is worth mentioning that, even if there is an agreement on a certain topic prohibited by the tenancy law, this does not make the practice permitted, so do not include it in the contract.

4. Register the contract at a notary's office for the safety of both parties.

Just as important as making a property rental contract is validating it through legally recognized signatures.

Therefore, after finalizing the agreement, confirm it with the signatures of both parties and have it notarized.

This makes it much more difficult for one of the parties to claim ignorance of the clauses, since there is a recognized signature that proves otherwise.

So, if any problem arises, the contract will be valid to protect the injured party.

Is it illegal to rent a property without a contract?

One of the main questions that owners have when they hear about the property rental agreement is whether it is illegal not to do so.

And, it is worth mentioning that there is no law that obliges the owner to draw up a rental agreement, as long as the tenant does not request the document.

So, making an agreement based on conversation and trust is not prohibited, but we cannot fail to say that it is a practice fraught with risks.

The contract serves to ensure that both parties have their rights and requirements respected throughout the rental period.

So, if you choose to dispense with it, you will have no guarantees in case any problem or discrepancy occurs.

Therefore, we recommend that you invest in creating the document, in order to guarantee a fair and advantageous agreement for both tenant and owner.

Roberta July 3, 2024