Best Tenancy Agreement Template
When you buy a real estate property for investment, you most likely want to rent it out. As a landlord, I'm sure you either heard of bad tenants or you personally encountered them before.
So how do you protect yourself against bad tenants? Your best bet would be to start off with an impeccable tenancy agreement. But where can you find such a tenancy agreement template?
Are tenancy agreement templates from agencies any good?
Many landlords take the easy route. They take tenancy agreement templates provided by real estate agencies in Singapore. For example ERA, PropNex and OrangeTee.
The problem is these templates are probably some of the worst ones you can find in Singapore. They provide minimal protection for you as a property investor. Nothing could be worse than renting to a bad tenant and finding out the tenancy agreement does nothing to protect you.
You see, the wording in these "standard" tenancy agreement templates are loose and vague. It creates a lot of grey areas when there are disputes.
The tenancy agreement should minimize your libalities and obligations towards your tenants. So where can you find the best template?
Unfortunately, there is no such thing as a "standard" tenancy agreement template.
Neither is there the best tenancy agreement template. Every landlords' needs, while similar, are significantly different.
Here's a different way to look at it. A tenancy agreement is a private contract between a landlord and tenant. There isn't a prescribed form for it.
That's why all terms and conditions on a tenancy agreement have to be mutually agreed upon by both parties through negotiations.
Important Elements Every Tenancy Agreement Must Have
Here are some of the basic information every tenancy agreement must have:
- landlord name
- tenant name
- tenanted premises
- rent
- taxes
- security deposit
- lease tenure
And it must also include these important clauses:
- early termination of lease
- tenancy default
- late payment interest and/or fee
- who is responsible for maintenance, repair and replacement, reinstatement, insurance
- comprehensive list of inventory of the premises.
Unless you are well versed in tenancy agreements and have experience in drafting contracts, you are strongly recommended to engage a lawyer. They will help you draft a comprehensive and watertight tenancy agreement template.
While it may seem expensive upfront to pay a lawyer, it will save you hundreds, if not thousands of dollars, later on should a dispute arise between you and your tenant. Not forgetting the countless hours you will have to spend on exploring options that offer resolutions to your expectation and satisfaction.
But if you really don't want to spend money on a lawyer, you can also Google for tenancy agreement templates. While there are no shortage of templates on the Internet, you have to scour through many of them to find what you need. To top it off, you will also need to invest hours to pick the clauses from the various tenancy agreement templates and put them all together to form your own.
Conclusion
Regardless of which option you choose, you must have very strong tenancy agreements. It will protect yourself against liabilities and unnecessary obligations to your tenants. You can sleep soundly at night and give yourself peace of mind to focus on what's important during the day.