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How to get the rental home paperwork in order?

17.08.2022

How to get the rental home paperwork in order?

Drafting the rental agreement, preparing the Handover Act of the property, and formally terminating the agreement are three parts of the rental process that can be a headache for many landlords. So how to avoid common mistakes? Here are some tips.

Avoid drafting invalid rental documents

It is essential to format your documents to be used as proof if necessary. However, Rendin's practice shows that filling out document bases can be a severe headache to people. Not to mention compiling them on one's own. So what is the proper way to act?

Landlords often add clauses to the lease agreement as they please, which are incompatible with the Law of Obligations Act. Thus, the owner might think themselves more protected with the help of their added clauses. But, in reality, the prescriptions that contradict the Law of Obligations Act are invalid and do not protect against anything. Nevertheless, it is one of the most common myths about the rental market.

One of the biggest problems is landlords adding clauses to the agreement that contradict the Law of Obligations Act.

An excellent example of a void clause concerns a termless rental agreement. Sometimes the agreement states that, at the request of one of the parties, it is possible to terminate the agreement with one- or two-months notice. Again, in reality, the Law of Obligations Act renders such a clause in the agreement null and void, and the notice period must still be three months long. This condition applies to both parties in the case of reciprocal termination.

Keep the rental agreement simple

A solid recommendation from Rendin's experts is to keep your rental agreement as simple and foolproof as possible. This is useful in several ways: 1) It takes less time to draft; 2) It is easier to understand for the other party, which is why problems with compliance with the rules are less likely to arise.

If you use the free rental agreement draft created by Rendin, you can follow our lawyer's comments that give advice on which additional clauses can be added to the agreement. In addition, we can promise that there are no clauses that conflict with the Law of Obligations Act.

Of course, you can get even better protection by using Rendin's safe rental agreement, which includes rent and utility payment guarantees and asset protection for the landlord. In this case, the landlord gets the satisfaction and confidence that in case of possible worries, they are fully protected financially and from the point of view of free legal assistance since Rendin's experts are always a phone call or e-mail away.

Do not forget about the Handover Act

In addition to a legitimate rental agreement, the Handover Act must be correctly drawn up that helps to record the condition of the rental property at the time of its transfer and to prove any changes, property violations, or deficiencies.

Although, in theory, filling out this document correctly seems simple and logical, it is often filled out sloppily or, worst of all, not filled out at all.

The most common mistakes in filling out the Handover Act are using out-of-date photos, failure to document problem areas, and incomplete photo descriptions that do not provide an overview of the property's actual condition.

Therefore, if something were to happen to the property in the rental home or the home itself, it would be tough, if not impossible, to hold someone accountable. For example, if the landlord uses a four-year-old picture of the kitchen table, but in the meantime, it has changed beyond recognition, then later, there will be no way to find out when the damage occurred and who caused it.

If the landlord is not a Rendin user: we recommend being thorough and accurate in describing and photographing your property. In addition, the landlord should thoroughly re-examine the process of filling out the Handover Act with each subsequent tenant. This is a basic but, at the same time, a significant part of the rental agreement.

If the landlord is a Rendin user: we provide a digital deed of transfer and acceptance of assets in our application, and the whole process can be efficiently completed step by step.

Terminate the rental agreement correctly

If the rental should end for some reason, the agreement must be terminated correctly.

A fixed-term agreement ends according to the date that was agreed upon when the agreement was concluded. Therefore, it cannot be terminated regularly, i.e., without a good reason.

The landlord and tenant can terminate a termless agreement in a regular and unreciprocated manner with three months' notice. It can also be ended earlier based on mutual consent.
A notice must be sent to the other party to terminate the rental agreement. If it is not completed correctly, it is void, and the other party is not obligated to agree to the termination of the contract.

Many cases of non-paying tenants are related to improperly formalized termination. If the non-paying tenant is legally competent, they can appeal wrongful termination. Thus, they retain the right to live in a rented home.

Emergency termination

Emergency termination of the contract is also possible, but in this case, there are clear conditions that are, again, based on the Law of Obligations act. Not every condition, seeming extraordinary and essential to one party, may not be so from the point of view of the law. One suitable example is selling real estate, which is not a sufficient reason for an emergency termination of the lease.

Rendin Document Generator

On the Rendin documents page, we offer notice of agreement termination drafts to our customers and all interested parties.