[ad_1]
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.
Getty
A lease agreement is the document created when a landlord enters into a contract with a tenant to rent property.
This article will break down all the requirements and tell you what you need to know to create a binding rental contract in Utah. One of the best ways to ensure you understand how a document works is by looking at a template. You can enter your email address below to get a free Utah lease template in your inbox.
Basing your lease on this document can help you ensure you create a legally binding document.
What Is a Lease Agreement?
A lease agreement is a contract between a landlord—the property owner—and a tenant (or tenants)—the person or people using the property.
The purpose of a lease is to spell out the rights and responsibilities of all parties. These typically include the landlord’s right to collect the agreed-upon rent, for example, and their duties to repair and maintain the property. The tenants also have rights and responsibilities in most rental contracts.
The exact nature of the roles of each party will depend on the nature of the document, Utah laws and the terms that the landlord and tenant agree to.
When Is a Lease Agreement Used in Utah?
A rental agreement is used when a property owner wants to rent their property to a tenant. While it is legal to have an oral lease agreement in Utah, having an agreement in writing is usually a good idea.
Without a written document, it could be challenging to prove that the other party isn’t honoring your agreement, and it may be more difficult to hold them accountable.
Who Typically Creates a Lease Agreement?
The creation of the document is usually left to the landlord, and you may find that a landlord is unwilling to use a lease created by a tenant. This is especially true of residential leases. However, prospective tenants always have the right to negotiate terms with a landlord, but this practice is more common when negotiating a commercial lease.
Regardless of who creates a lease, it can benefit both parties to document all the terms agreed to at the beginning of the landlord-tenant relationship.
What Parties Are Involved in a Lease Agreement?
The parties to a rental contract are:
- The landlord who owns the property
- The tenant who occupies the property
The landlord and tenant can be single individuals, groups of people or companies.
Sometimes, a landlord may require a tenant to find a cosigner, who becomes a third party to the contract. A cosigner—also called a guarantor—is responsible for fulfilling the tenant’s obligations under the lease if the tenant fails to do so.
What Should Be Included in a Utah Lease Agreement?
There are a lot of elements that should be in a lease, but the requirements of a written lease in Utah are surprisingly minimal:
- A lease must identify and be signed by all parties.
- A lease must identify the address of the property being rented.
- Finally, a lease must identify the amount and frequency of the rent payments.
Just because it only takes a few criteria to form a legal lease doesn’t mean it’s a good idea to write such short and vague agreements, however.
A well-written Utah lease should include details like the term of the lease, the manner in which the rent is to be paid, the security deposit (if any), how the tenant should contact the landlord, the timing of repairs and requirements for the landlord accessing the property. These are just some items that a lease should include, too.
You can see an example of a well-drafted and inclusive Utah lease in our free template.
Frequently Asked Questions (FAQs)
Does a lease need to be notarized in Utah?
A Utah lease does not need to be notarized to be valid and enforceable. In fact, notarizing a lease is extremely rare—increasingly so as more and more residential leases are e-signed.
What is the maximum fee for late rent in Utah?
Under Utah law, there is no limit to the late fee landlords can charge tenants for late rent. Remember, however, that the state maximum may be different from the late fee in your lease. The fee can be less than the state maximum, but it can’t be more than that amount.
What rights does a tenant have in Utah?
A lease in Utah is a contract between the tenant and landlord. Like any contract, both parties can negotiate the terms—at least in theory. In practice, landlords may be unwilling to alter their residential lease.
It doesn’t hurt to ask, however. It’s also important to know that a lease can’t contain terms that are illegal.
Was this article helpful?
Next Up In
Company Formation
More from
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
Are you sure you want to rest your choices?
”
>
[ad_2]
Source link