When to Use a Family Member Lease Agreement
A family member lease agreement can be used in a variety of situations, including:
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When a tenant is facing eviction and needs a place to stay
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When a landlord has a vacant unit in their rental property
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When a tenant wants to improve their credit score
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When a landlord wants to provide housing for a relative
In the abovementioned situations, it is assumed that the property owner is renting out a part of the space, typically a room, instead of the entire place. However, if a family member is willing to rent the entire house or apartment and the landlord has the ability and willingness to do so, a standard rental agreement should be used.
If you are considering entering into a family member rental agreement, it is important to consult with an experienced attorney to ensure that the agreement is legally binding and enforceable. An attorney can also help you draft the agreement so that it meets your specific needs and objectives.
How to Fill Out a Family Member Lease Agreement
In every family rental agreement template it would be prudent to include the following information:
Step 1 – Names of the parties, addresses, and contacts
First and foremost, fill in the names of the landlord and tenant. Then, provide the contact info of both parties (including phone number and email).
Step 2 – Address of the property
Fill in the address of the rental property.
Step 3 – Term of the lease
Specify the start and end date of the rental agreement.
Another piece of information that might be included is the presence or absence of the opportunity to terminate the lease early.
Step 4 – Details about the property
It is important to include in the rental agreement is a detailed description of the property. It typically involves describing the condition of the premises (including any damage present). Another thing to mention is the allocation of areas at home (in case you want to split the home space among family members for their use). The present furnishing might be described here as well.
Step 5 – Rent amount and payment method
Enter the rent amount and how it will be paid (e.g. monthly, weekly, etc.). The payment method (cash, bank transfer, etc.) should be specified too.
Step 6 – Security deposit
Enter the security deposit amount, if any.
Step 7 – Utilities
If the family member is expected to pay any utilities or its part, it has to be written down in the agreement.
Step 8 – Pets
Some people chose to include provisions about pets on the premises. The agreement might say whether or not the pets are allowed and if yes, how many and what kinds are permissible.
Step 9 – Food
Another section that is optional n but might be useful is the food section. It might tell if the food in the fridge can be used by the tenant and whether or not the tenant has to pay for it.
Step 10 – Parking space
If a family member has a car they need to park. The agreement should provide information on if the parking space is provided by the property owner.
Step 11 – Quiet hours
If the property owner wants to discuss the hours when the family member is expected to be quiet, it should be written down in the rental contract.
Step 12 – Safety arrangements
There might be some specific safety rules the landlord want the family member to follow. If so, they should be described in the specific provision. Among these rules might be locking the house, permission for guns on the premises, etc.
Step 13 – Household chores
If the property owner wants the family members living on their property to split the chores, it would be wise to include that in the lease agreement as well.
Step 14 – Visitors
The landlord might also want to discuss the visiting hours and expected visitors’ behavior in the family rental agreement.
Step 15 – Subleasing
The tenant might want to sublet the property to someone else at a certain point; the family lease agreement should cover this situation and tell whether or not it is permissible.
Step 16 – Default by the tenant
Even family members might default on the lease. If the landlord wants to specify the consequences of such default (includes not paying rent, breaching the house rules, etc.), they should include this in the rental contract.
Step 17 – Signatures
Lastly, all parties involved should put their signatures and the dates of signing.
Note: It is advisable to consult with an attorney before entering into a family rental agreement. An attorney can help you draft the rental agreement so that it meets your specific needs and objectives.
Frequently Asked Questions about Family Member lease Agreement
Can a family members lease agreement be used to evict a tenant?
The specifics of evicting a family member from your rental property can vary depending on the laws of your state. In some states, you may be able to evict a family member for not following the terms of the lease agreement. In other states, you may need to go through a formal eviction process. If you are considering evicting a family member from your rental property, it is important to consult with an experienced attorney to ensure that you are following the correct legal process.
Can a family member lease agreement be used to improve a tenant’s credit score?
Yes, a family member lease agreement can be used to improve a tenant’s credit score. By entering into a lease agreement, the tenant is demonstrating their ability to pay rent on time and maintain a good rental history. This can help to improve their credit score over time.
Can a family member rental agreement be used to provide housing for a relative?
Yes, a family member rental agreement can be used to provide housing for a relative. The agreement can be used to specify the terms of the tenancy, including the rent amount and payment schedule. It is important to consult with an attorney before entering into such an agreement to ensure that it is legally binding and enforceable.
Can a family member rental agreement be used to rent out a vacant unit in a rental property?
Yes, a family member rental agreement can be used to rent out a vacant unit in a rental property. The agreement can be used to specify the terms of the tenancy, including the rent amount and payment schedule. It is important to consult with an attorney before entering into such an agreement to ensure that it is legally binding and enforceable.
What Should Be Included in a Family Member Lease Agreement?
The rental agreement should include the following information:
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The name and contact information of the landlord (the property owner) and tenant (a family member)
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The address of the rental property
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The term of the lease, including the start and end date
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The rent amount and how it will be paid
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The security deposit amount, if any
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Any other terms and conditions agreed upon by the landlord and tenant
If you are considering entering into a family member lease agreement, it is important to consult with an experienced attorney to ensure that the agreement is legally binding and enforceable. An attorney can also help you draft the agreement so that it meets your specific needs and objectives.
Advantages and Disadvantages of Creating a Family Member Rental Agreement
There are both advantages and disadvantages to creating a family member lease agreement. Some of the advantages include:
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It can provide stability for the family member, especially if they have a low income or are facing eviction.
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It can help the landlord to fill a vacant unit in their rental property.
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It can be used to give the tenant a chance to improve their credit score.
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It can provide the landlord with an extra income stream.
Some of the disadvantages of creating a family members lease agreement include:
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The tenant may not be able to pay the rent on time, which could damage the landlord’s credit score.
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The tenant may cause damage to the rental property.
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The tenant may not follow the terms of the rental agreement, which could lead to eviction.
If you are considering entering into a family member lease agreement, it is important to consult with an experienced attorney to ensure that the agreement is legally binding and enforceable. An attorney can also help you draft the rental agreement so that it meets your specific needs and objectives.
5 Steps to Renting Out the Space to a Family Member
#1. Choose what lease will fit you best
There are different types of lease agreements: month-month, week-to-week, with a fixed term, renewable, etc. You need to decide which one works better for you and your family member. For instance, if a family member has a temporary housing issue and they will need to live at your place for a specified amount of time, you might want to sign a tenancy agreement with a fixed term. On the other hand, if a family member is in a situation where they don’t know how long they want to live with you, a month-to-month rental contract will be a better option.
#2. Discuss what areas are common and which ones are private
To make it easier for both parties to feel comfortable at the rental unit, it is prudent to locate the spaces in the house and discuss which can be used by all house dwellers and which a family member should not access.
#3. Talk about the household chores
Everyone wants to keep their home clean, which is why it is smart to discuss the division of chores among all family members living on the premises. For instance, a family member renting the house might be expected to do dish washing, take out the trash, and do grocery shopping on a regular basis.
#4. Speak about the rules at home
It is perfectly fine when a property owner wants to keep certain rules at their home. This is why they should include in the agreement any policies they want all dwellers to stick to like a no-smoking, no-drinking, or no-pet policy.
#5. Discuss the rent amount
Talk with your family member about the rent that is expected to be paid on a monthly basis. Of course in some situations, rent payment is not implied at all (for instance, when children move back with their parents). In this case, the rent might be substituted by covering some of the household expenses.
#6. Distribution of utilities
Another thing to talk about with your family member is how the utilities will be paid. It is possible that a prrty owner takes all the utilities on themselves; at the same time, it is common for a tenant to take on a certain percentage of the utility bills.
#6. Termination
If a family member might need to move due to their job or other important affairs, the lease should better state that the tenant might leave the premises at any time.
#7. Moving in
Once the rental agreement is crafted and the parties agreed on all provisions by signing the contract, the tenant might move to their new place of living. If the agreement specifies that the secutity deposit should be paid, it should be done before a family member’s move-in.
The Specifics of Evicting a Family Member
from your rental property can vary depending on the laws of your state. In some states, you may be able to evict a family member for not following the terms of the rental agreement. In other states, you may need to go through a formal eviction process. If you are considering evicting a family member from your rental property, it is important to consult with an experienced attorney to ensure that you are following the correct legal process.
An attorney can also help you draft a notice to vacate so that the tenant understands their rights and responsibilities.