As a landlord, one of the most important things you can do is create a solid lease agreement. This legal document outlines the rules and expectations for the tenant and the landlord, keeping everyone on the same page. A good rental agreement protects your property and prevents legal trouble.
In Austin, where the rental market is thriving due to a rapidly growing population, creating a strong residential lease agreement is especially important—whether you’re renting out a modern apartment downtown or a cozier home in Zilker. Here, we’ll go over the key elements of a lease agreement in Austin.
Who’s Who in a Lease Agreement?
First, a residential lease agreement in Austin, Texas must state who is involved in the lease agreement. As the landlord (the “lessor”), you decide who lives in your property and for how long. Your legal name should be listed in the rental agreement, but if the property is managed through an LLC, be sure to list the name of the LLC.
A rental lease agreement in Austin, Texas should also include the legal names of all tenants who will be living in the property. This includes the primary renter and any roommates or family members. Co-living arrangements are common in Austin, where people are trying to avoid overpaying on rent. If you need help setting up your rental agreement, lease agreement templates can be helpful.
Key Terms in The Rental Agreement
Next, your lease agreement needs to lay out the terms of the rental period, including how long the tenant will be staying. Will the rental agreement be for six months? One year? Many are for a full year, but some tenants prefer a month-to-month lease agreement for flexibility. This can be common in Austin, where there are lots of young people who move regularly.
Along with the start and end dates of the lease, state what happens once the lease agreement ends. Sometimes, a rental agreement automatically renews, and other times, they switch to month to month. Being clear about these details in your residential lease agreement in Austin, Texas will help you and your tenant avoid confusion down the road. In Austin, there are no rent control laws, meaning landlords can raise rent after a lease agreement ends without restrictions. While there are no rent caps, Austin does have regulations about providing tenants with enough notice for non-renewal of a lease so they can find somewhere else to live.
Rent is another component of the lease agreement. Specify how much rent will be, when it’s due, and how it can be paid. Your rental agreement may allow payment via check, cash, credit card, bank transfer, or money order. Include a clause in the lease agreement about late fees, including how much they’ll be and when they’ll kick in if the tenant doesn’t pay on time. If you want to charge a security deposit upon move-in, add that to the rental agreement. This will be returned at the end of the lease agreement if there aren’t any damages.
Lease agreement templates are a great starting point for creating your rental agreement, but make sure they fit your property and needs in Austin’s unique rental market.
Deciding Who Will Handle Utilities, Maintenance & Repairs
Every lease agreement should say who will be responsible for paying for utilities and taking care of maintenance. In Austin, weather conditions can affect utility usage significantly, particularly in the summer when the temperatures reach over 100 degrees. Sometimes, utilities like water or trash pickup will be included in the price of rent. If this is the case, ensure it’s written out in the rental agreement. Should the tenant be responsible for utilities like electricity or internet, state this in the rental agreement.
Landlords typically cover major repairs, like broken appliances or a leaking roof. Tenants are usually responsible for minor maintenance, like mowing the lawn or changing air filters. If your property is in a neighborhood like Saratoga Hills or Breakwater, where the lawns span for acres, you’ll want to be clear about who’s responsible for its upkeep in your lease agreement in Austin.
To avoid frustration, include a clause in the residential lease agreement about how long you, as the landlord, have to respond to repair or maintenance requests. Tenants want to know that if something breaks, it’ll be quickly fixed.
Is Rental Insurance Necessary?
While not required under Texas law, many landlords in Austin choose to include a clause in their residential lease agreement requiring tenants to have renters insurance. Renters insurance protects the tenant’s belongings in case of theft, fire, or other damages. It can also provide liability coverage if someone gets hurt on the property.
Including this in the residential lease agreement protects you and your tenant from unexpected expenses. If you require renters insurance, make sure the tenant provides proof of coverage before move-in and keeps the policy active throughout the lease agreement.
Rules for Accessing the Property
There may be times when landlords need to access the rental property to make repairs or give a tour to potential new tenants. Tenants have privacy rights, so outline property access in your rental lease agreement in Austin, Texas.
Texas doesn’t have laws about how much notice a landlord has to give before entering; however, common courtesy is to provide at least 24 hours’ notice, unless it’s an emergency. Using a lease agreement template will help you to specify the circumstances under which you can enter the property—such as to make repairs, do an inspection, or conduct routine maintenance.
Are Pets Allowed?
Austin is a pet-friendly city, filled with dog parks and other pet-friendly establishments around town. Many tenants search for properties that allow pets, but landlords decide whether to allow them. Make sure you state which types of pets and breeds are allowed and if there’s a weight limit in your lease agreement in Austin.
You should also specify whether there’s a pet deposit or a monthly pet fee in the residential lease agreement. A pet deposit can cover damages caused by animals. If you don’t allow pets and your tenant brings one into the property, state in the rental agreement whether you’ll assess fees or take further action.
Need Help With Your Lease Agreement in Austin?
Austin may be a laid-back city, but that doesn’t mean you should be lenient about your lease agreement. Handling all the tiny details in a residential lease agreement can be a lot to manage on your own. Protect yourself and your property by working with an experienced property management company like Evernest. We’ll make sure nothing is missing from your lease agreement in Austin and cover tenant placement, maintenance requests, and everything else in between.
