If you`re considering renting out your basement apartment, it`s important to have a clear and comprehensive lease agreement in place. A lease agreement outlines the terms and conditions of the rental agreement between you and your tenant and serves as a legal safeguard for both parties.

Here are some key elements to include in your basement apartment lease agreement:

1. Rental Price and Payment Terms

Include the monthly rent amount and how it will be paid (e.g. check, online payment, or cash). State the due date and any late fees that will apply if rent is not promptly paid.

2. Security Deposit and Refund Policy

Outline the security deposit amount and under what circumstances it would be forfeited. Detail the steps that you and your tenant will take at the end of the lease term to assess and refund the security deposit.

3. Duration of Lease

Clearly define the length of the lease term, including the start and end date.

4. Utilities and Expenses

Specify which utilities (e.g. water, electricity, or gas) are included in the rent and which ones the tenant will be responsible for paying. Detail any shared expenses (e.g. snow removal or lawn maintenance) and how they will be handled.

5. Occupancy Limits and Guest Policy

List the number of people allowed to occupy the basement apartment and any restrictions on overnight guests.

6. Maintenance and Repair Policies

Outline who is responsible for repairs and maintenance, including specific guidelines for the tenant`s responsibilities (e.g. cleaning, trash disposal, and pest control).

7. Termination Policy

Detail the circumstances under which the lease agreement can be terminated by either party. Include notice requirements and any associated fees or penalties.

8. Pet Policy (If Applicable)

Specify any pet restrictions or requirements, including the number of pets allowed and any additional fees or deposits.

Creating a detailed and well-written basement apartment lease agreement can help you avoid misunderstandings and conflicts with your tenants. Take your time and carefully consider all aspects of the lease agreement to ensure a positive rental experience for you and your tenant.