A lease contract, like any other contract, is a declaration that is based on the common will of the contracting parties, and is intended to regulate the lease relationship between them. A good lease is detailed, it includes the contracting parties’ personal needs, rights and obligations. If we want to have a well-functioning, transparent lease relationship, we need an agreement that protects both parties – the tenant and the landlord – equally, and provides adequate guarantees for both parties.
What to put in the contract, other than the mandatory elements?
In our previous article, we have already cleared the picture about what the minimal content items are for a valid contract. Now we would like to share some details about what we think the important elements are, that a contract should include:
- Cases for terminating the contract and the rules of termination. In the case of a fixed-term contract, the parties may exclude the possibility of terminating the contract by an ordinary notice. In the case of an indefinite notice, a period of time can be set for which the tenant loses the security deposit if he terminates earlier than the ordinary notice. It is good to include the rules for termination in a written form as well.
- The deadline and method for paying the utility fees. Since each and every contract is unique, it is worth choosing the way that is the most convenient and secure for both parties and setting out its rules in the contract.
- The rules, amount and function of security deposit. It is definitely worthwhile to set out the detailed rules in the contract, in order to avoid future arguments.
Advice: It could be set down, for example, that the condition for returning the security deposit, in addition to the exact settlement of course, is that the tenant must present the relevant documents that prove that she has checked out of the property at the end of the contract. If you have a foreign student as a tenant, weyou may even make it a condition that you terminate that the internet subscription contract, that is on his name, should be cancelled or taken away to his new address. - The rules for using the real estate – The more detailed the rules are, that are acceptable for both parties of course, the less chance there is of any misunderstandings or possible outrages. Therefore, it is worth clarifying at the signing of the contract, questions like: how many people can use the property, whether the tenant can keep a pet, under what conditions smoking is allowed, etc.
Advice: In case of a foreign tenant, the different culturs and habits may make it necessary to explain or show them some things that are completely natural to us (eg use of windows, locks). - Checking on the use of the real estate – Problems can also be prevented by including in the contract how often the Landlord intends to check the use of the property. Of course the Tenant should accept that as well.
- Making an inventory list – In addition to the recording of utility meters, it is worth taking the effort and making a detailed inventory list of the equipments and technical items. It is advised to record it in digital form as well (eg video recording). We can be sure that it will save us from inconveniences and debates!
- House rules – In most cases, the rented property is in a condominium building. The tenant, when renting a condominium apartment, also becomes part of its community, as he uses the “parts” of the condominium that are shared (yard, stairwell, garbage storage, shared storage, bicycle storage, rest garden, etc.).A bérlő, amikor társasházi lakást vesz bérbe, részévé válik a társasház közösségének is, hiszen a társasház közös tulajdonban lévő „részeit” is használja (udvar, lépcsőház, szeméttároló, közös tárolók, kerékpártároló, pihenőkert etc.). So it is the best if the Tenant has a chance to get to know the norms and rules of the community already at the time of signing the contract.
- Background rules – It is worth including that in matters that are not covered by the contract, Act V of 2013 on the Civil Code and Act LXXVIII of 1993 on certain rules concerning the lease and alienation of flats and premises the provisions of this Act shall apply.