EVERYTHING about the Rent Agreement so as not to take 'Default' from the Tenant
Understand what a lease or lease is and in what situations you should use it. How to do it, which essential clauses must be included in your contract. Simple PDF and word templates for printing.
Some people feel the need for extra income and, when thinking about how to get it, they realize they can rent one of their possessions.
There are also those that create companies just to provide the rental of objects or goods to those who only want to use them for a short time.
In situations like these, it is very important that the owner makes a rental or lease agreement, so that he and the tenant feel protected, avoiding that in the future either one of them demands something that was not agreed upon.
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Therefore, we will see in this article, in 11 topics , everything you need to know before making a rental contract.
- 1. What is it?
- 2. How to do it?
- 3. Residential Lease Agreement
- 4. Commercial Rental Agreement
- 5. Equipment Rental Agreement
- 6. Season Rental Agreement
- 7. Vehicle Rental Agreement
- 8. Rent Agreement at the Notary Office
- 9. Payment Guarantees Accepted
- 10. Who pays for the contract?
- 11. Breach of rental agreement
Let's start by talking about what this type of contract is.
1. What is a Rental Agreement?
A lease agreement, also known as a lease agreement or private lease instrument, is a written document that records a legal transaction between two people.
In this agreement, the owner assigns the use of a property, which he owns, for another person (tenant) to use for a period, which he will repay with the payment of an amount.
Therefore, there are several types of goods that can be rented, such as:
- Vehicle /automobile ( car , truck, motorcycle, etc.)
- Commercial property (store, living room, shed, building, hall, fair stand, etc.)
- Residential property (house, apartment, farm, bedroom, kitchenette, etc.)
- Equipment in general, such as computers, party chairs, machines, etc.
In this way, the one who owns the good or object is called the landlord . Those who use the property or object of the owner are called tenants or tenants . The amount paid to the lessor for the use of the asset or object is called rent .
As is customary in making any payment, it is very important to have a receipt, a receipt that proves that the person actually paid that amount, on that date to another person.
Rent is no different. it is necessary that after each payment, a rent receipt is given to the tenant, so that he can prove that he actually made the payment for that month.
This prevents one of the parties from claiming payment or lack of payment, and there is a receipt signed by the lessor stating that it received the corresponding amount.
2. How to make a direct rental contract with the owner?
Now that we understand what the rental agreement is and the importance of the receipt at the time of payment, let's see what are the requirements that cannot be missed.
Personal Information of the Parties
In order to correctly identify who is involved in the legal business, personal information of the lessor and lessee, such as full name, address, profession, nationality, CPF and RG if you are an individual or CNPJ if you are a legal entity, cannot be missing.
The names of spouses, guarantor and attorney, if any, must also be informed, as well as ways to contact them.
The good or service to be rented must be fully described in the contract, indicating color, size, address where it is located and any other information used to identify it.
However, this information will vary by object. For example, if it is a property, you must specify the data contained in its deed. If it is a vehicle , it must have data such as license plate, model , among others.
Period of validity
Brazilian law says that the parties can agree on any period for the duration of the rental, being allowed until the realization of an indefinite period .
However, there are some contracts that usually use the term of 12 months ( residential rent ) or 5 years ( commercial rent ).
However, rental contracts may be extended, if the parties so wish, for as many times as necessary.
Value and Payment Method
For the avoidance of doubt, the amount of the rent must be stated, in full and in number, as well as informing how the payment will be made.
The most preferred ways are payment by bank slip, bank transfer or check, and the due date must also be informed.
Something very important is to explain who will pay the charges for the property, if any, such as property tax, property tax, condominium, electricity, among others, to prevent anyone from taking responsibility for the payment and the property acquiring debts.
It is also very important to make it very clear what the readjustment value will be, every 12 months, to prevent the increase made by the lessee from being alarmingly high.
This amount cannot have any connection with the fixed amount of the minimum wage or exchange variation, for example.
With that, up to this point you have already realized that the best choice when renting an object or property is to be protected by a rental contract, so that everything that is agreed is recorded.
This contract is based on several Brazilian laws, such as the Civil Code and Law nº 8.245/91 (the tenancy law) and having a complete Official contract in hand made in accordance with the New Tenancy Law is rare nowadays .
3. How to make a simple Residential Rental Agreement?
Some people want to rent a house or apartment , with a varied amount of rooms, to live.
There are also those who want a country house with a pool or a furnished apartment for their holiday trip.
In these cases, a Residential Rent Agreement is made , which usually has a term of 12 months , which can be postponed if the parties are interested.
Thus, with the completion of this contract it is possible to avoid some setbacks, such as the tenant saying that he was never informed that he would have to pay the property tax, for example, and the landlord has no way of proving his awareness.
4. What is the minimum term for a Commercial Lease Agreement?
How many people do not decide daily to open their own business, be it a beauty salon, a candy store or some other business?
How many companies, after having good sales growth, realize they need a bigger place to hire more employees?
In cases like these, when finding the ideal place, it is necessary to carry out a simple Commercial Lease Agreement , thus avoiding future complications.
In addition, it is important to remember that the difference between this contract and other rental contracts is its term , which must be at least 5 years.
5. Can I rent equipment?
When planning to hold a birthday or wedding party, there is always the need to rent tables and chairs for guests.
If the objective is to open a factory, initially it will be necessary to rent some machines to be able to start the work at the factory.
Regardless of what equipment is needed, the Equipment Rental Agreement must be used , and it cannot lack information on the amount rented, as well as the description of the object.
6. How is the Season Rental Agreement?
A different modality of property leasing is the seasonal one , which consists of renting a residence for a short period of time, such as for someone who is on vacation or someone who is taking a short-term course.
The biggest difference with this contract is that it cannot be longer than 90 days, which in no way should be considered the same as 3 months.
Therefore, if you need to stay in another state for up to 90 days, regardless of the reason, don't forget to make the Season Rental Agreement .
7. How to rent a Private Vehicle with a simple contract?
Very common when traveling to another state or country is for travelers to rent a vehicle for the period they are enjoying their vacation.
There is also car rental to work as a travel app driver , as many Uber drivers do.
Even if your reason for renting a vehicle is different, it is always good that this service is described in a Car Rental Agreement .
It is very important that all information that identifies the vehicle is in the contract, such as brand, color and license plate number, to prevent the lessee from returning a vehicle different from the one rented at the time of return.
Therefore, as this contract is very important for its legal validity, it is recommended that it be done by a competent professional, such as notary offices or lawyers , who will know everything that the legislation recommends.
8. How to make a Rent Contract at the Registry Office?
To formalize the document in a Notary Public, the parties must draw up the contract with the terms that they agree on and then go together to a physical Notary Public, taking the document.
Upon arrival at the site, they must notarize the signatures not only of the parties, but also of the people who witnessed the signing of the contract.
With this act, they will be guaranteeing publicity to the document, not only among themselves, but in front of society as a whole, so that no one can subsequently claim ignorance of its terms.
There are also those, in the case of property rental, who decide to register the contract on the property's registration certificate, to ensure that the lessor does not sell the property without the new owner being aware of the current rental agreement.
Given the amount of details in this document, many choose to hire a private lawyer or law firm to do it.
However, these professionals usually charge a high price for it, something around R$ 200.00 just to make it.
9. What are the payment guarantees for this contract?
If the lessee is unable to rent, there are some ways to ensure that this amount is paid, as shown below:
The landlord may ask the person who is renting his property for an amount as a guarantee of payment, the most common being in cash and in the amount of up to three months' rent.
This guarantee is for the owner to have protection in case there is a problem that does not allow the tenant to pay the rent, such as being unemployed.
However, if the duration of the contract expires and there is no problem, the amount of the deposit will be refunded to the tenant.
When the tenant appoints another person as responsible for paying the rent, if there is any reason that does not allow him to pay, we call that third person the guarantor .
If this is the chosen form of guarantee, the contract must contain all of the guarantor's personal information, such as full name, address and contact telephone number.
This information is necessary so that the lessor can contact the guarantor, if necessary.
Anyone who is renting a property can choose the option of paying an insurance company an amount so that, if they cannot afford it, the insurance company will pay the rent.
In the contract, the information of this insurer must be written, which will allow the owner of the property to contact it, if the need arises.
10. Who pays for the Rental Agreement: lessor or lessee?
This is a point that sometimes generates a lot of discussion between the parties, because neither of the two wants to bear the costs. Sometimes they even choose to get free contract templates on the internet to avoid having to spend more on doing business.
The big problem, as mentioned above, is the lack of legal validity that many of these documents have, due to the lack of fulfillment of the requirements required by law.
Therefore, it is always good to look for a qualified professional, with legal knowledge to prepare this document.
Although law firms charge an amount considered high just for the preparation of the contract, there are online registries that can make your document for a much cheaper price, which won't put too much pressure on the pockets of any of the contracting parties.
The most common is that the lessor pays for this contract, since he is the most interested and the one who can be harmed the most by the lack of this document. However, nothing prevents the parties from waking up differently.
11. How does the breach of the Rental Agreement work?
In a rental contract or lease agreement must have the penal clauses, which are the consequences suffered by each of the parties if they disrespect any obligation and the breach of contract happens . And you can apply the rental billing notice.
The best known reason for terminating the contract is late payment, where if this happens, it is customary to apply a fine of 10% on the rent.
It may also happen that one of the parties, landlord or tenant , wishes to terminate the contract before its deadline , either because the landlord no longer wants to rent the property or because the tenant found a cheaper rent or got his own house , for example.
In this case, the amount of 3 months' rent to be paid as a fine or ⅓ of the amount that would be paid if the contract were fully fulfilled must be calculated .
However, Brazilian law does not say exactly what penalties should be in the rental contract.
That is why it is so important that this information is written in the document because if someone does not comply with any clause, the contract will have the consequence that they will suffer for its non-compliance.
All about the Topic
Legislation: Civil Code and Law No. 8.245/91 (Tenancy Law)
Concept: document that proves the legal transaction where a person gives up the use of their property for another to use, receiving a value in return.
Duration: According to the law, the parties can combine any term and duration, but there are some types of rental contracts that usually use a certain term , such as the commercial one that usually has 5 year contracts .
Payment guarantees: the most used are surety , surety and surety bond.
What can't be missed:
- qualification of the parties;
- object description;
- payment conditions;
- readjustment clause;
- breach of contract clause.