Whether you rent out one home or several, the written agreement with your resident is one of the most important documents you’ll use. This article gives a general overview of common terms and topics. It is not a template, and it’s wise to have an attorney review any lease you plan to use.
Rental agreement or lease?
People often use the words interchangeably. In general, a “lease” usually refers to an agreement for a set term, such as 12 months, while a “rental agreement” often refers to a month-to-month arrangement. Each has tradeoffs in flexibility and predictability. Which fits your situation depends on your goals and is worth discussing with a professional.
Topics a lease commonly covers
- The names of the owner or manager and the residents
- The address of the home and the lease term
- Rent amount, due date and how payment is made
- Deposit terms
- Who handles which utilities and routine upkeep
- How maintenance requests are submitted
- Pet, parking, smoking and occupancy terms
- Notice requirements for entry, renewal and move-out
Deposits
Montana law has specific rules about rental deposits, including how they are handled and returned. Because these rules are detailed and can change, it’s wise to review current law or ask an attorney rather than relying on a general article.
Keep it clear and consistent
Plain wording, a signed copy for every party and the same terms applied to every resident can make the lease easier for everyone to follow. Reviewing your lease from time to time with an attorney can help keep it current.
How a property manager can help
Depending on the owner’s needs, a property manager’s services can include coordinating lease signings, renewals and record keeping using lease forms the owner and manager have agreed on.
Ironhorse Management has worked with Gallatin Valley owners since 1979. If you would like to talk through your rental, contact our team or call (406) 586-4933, Monday through Friday, 10am to 4pm.
Please note: This article is for general informational purposes only and is not legal, financial or tax advice. Every property and situation is unique. It’s wise to consult an attorney and/or CPA for legal or financial matters, and to review your lease, Montana law and other appropriate resources before making decisions, rather than relying only on this article.