What Is an Iowa Lease Agreement?
An Iowa Lease Agreement is used to lay down the terms and conditions of a lease in the state of Iowa. The owner of the property and the tenant enter into this agreement to encapsulate their understanding with respect to the lease. The agreement is in compliance with Iowa rental laws. In the absence of such an agreement, it becomes difficult to prove the terms of the lease.
When Do You Need an Iowa Lease Agreement?
Such a lease agreement is required when a property is leased out in Iowa. It could be residential, commercial or any other kind of property. An Iowa residential lease agreement is required to evidence the leasing out of a residential property.
The purpose of a lease agreement is to state the duties of both parties and to lay down all the important details related to the use and maintenance of the property.
Inclusions in the Iowa Lease Agreement
The Iowa rental lease agreement includes
- Identification of both parties i.e. the lessor and lessee with their names and contact information.
- It should then mention the term of the lease along with the dates on which the lease shall commence and expire.
- The agreement should then mention the amount of rent and security deposit that is payable by the lessee. Under the laws of Iowa, the security deposit should not exceed two months of rent.
- The contract must also include a description of the leased property along with the duties and obligations of the parties.
- The agreement must also provide remedies in case there is any damage caused to the property by the lessee during the term of the agreement.
How to Draft an Iowa Lease Agreement?
The parties must agree upon the important terms related to the lease, such as the rent, security deposit, etc.
The following are the steps to follow while drafting a rental agreement in Iowa:
- It should state the Official Rules and Regulations, i.e the Iowa Uniform Residential Landlord and Tenant Act, any limitations of actions as per the Iowa Code §§ 614.1
- Security Deposit should be mentioned, i.e how many months’ rent will be required as a security deposit, whether any interest earned through the same will be a property of the landlord, and deadlines for returning this deposit to the tenant.
- The use of such a security deposit will be limited to covering any unpaid rent or the funds due by the tenant, restoring any conditions or recovering expenses or if the tenant fails to surrender the premises by the tenant after noncompliance. For this purpose, a record-keeping of deposit withholdings is important.
- The Lease, Fees, and Rent terms must be specified, i.e, the due date, notification of a hike in rent, grace period, late fee charges. It must also specify that tenant can withhold the rent if the landlord fails to repair any damages, mitigates, or makes an attempt to re-rent.
- Notices and Entry, i.e, through notices aren’t mandatory for termination of fixed end-date leases, the tenant can terminate tenancy lasting more than a month by giving prior written notice to the landlord, at least 30 days before.
- Disclosures and Miscellaneous notes should specify the names and addresses of the parties, utility rates, environmental liability, a copy of leases, domestic violence status, retaliation, lead disclosure, and the landlord and tenant duties.
- The agreement must then be signed by both parties to make it a valid contract.
All these terms must be laid down in a written agreement that brings forth the intention of the parties involved.
Benefits of an Iowa Lease Agreement
The following are the benefits of this agreement:
- This agreement is essential to evidence the leasing of the property along with the details thereof.
- It also helps to safeguard the rights and interests of the parties.
- It also provides remedies in case there is a breach of the terms by either party.
Key Terms in the Iowa Lease Agreement
The key terms in an Iowa lease are as follows:
- Description of the parties
- Description of the premises
- Term of the lease
- Rent amount
- Amount of security deposit
- Default on rent payment
- Maintenance of property
- Events of default
- Remedies for events of default
- Termination of agreement
What Happens in Case of Violation?
When a lease agreement is breached by the lessee, the lessor can serve a notice to him and ask for the breach to be cured within a particular period of time. In case this is not done by the lessee, the lessor has the option of terminating the agreement. The lessor can also take back possession of the property in case the lessee fails to fulfill his obligations as stated under the agreement.
An Iowa Lease is a mandatory agreement that outlines the duties of both- the landlord and the tenant. A well-drafted agreement along with know-hows will help establish a successful relationship between both.
Sample Iowa Lease Agreement
You can download an Iowa Standard Lease Agreement template here.