A Brief Introduction of Storage Space Rental Agreement
A storage space rental agreement is an agreement wherein a storage space is rented out to a tenant on certain predetermined terms and conditions. This agreement is necessary to mention the purposes for which the storage space may be used by the tenant and what activities are strictly prohibited. The agreement contains all the clauses regarding the obligations of both parties. This agreement may also be called a rental agreement for storage space.
Who Takes the Storage Space Rental Agreement?
A storage space rental agreement is entered between the person who owns the storage space (known as the “landlord”) and the person who wishes to rent it out from him (known as the “tenant”).
Purpose of the Storage Space Rental Agreement
The purpose of this storage space rental agreement is to lay down the terms under which the storage space has been leased out to the tenant by the landlord. This agreement is very important as it contains all the details that are needed to serve as evidence of the lease. Hence, parties are always recommended to create this agreement, whether they are the landlord or the tenant. Having a written agreement in place always minimizes the scope of a dispute or misunderstanding between the parties. The purpose of any agreement is to encapsulate the understanding of the parties and provide for remedies in case of any default.
Contents of the Storage Space Rental Agreement
The storage space lease agreement must first identify the landlord and the tenant with their names and their contact information. It must mention the date on which the agreement is created and the date on which the lease shall come into existence. The lease may be for a period of one year, or it may also be a month-to-month lease, as the parties may decide.
The agreement must lay down the amount of rent that will be payable by the tenant and the date by which such payment is to be made. The amount of security deposit payable should be clearly mentioned.
The location of the storage space, along with details such as the unit number, must be mentioned. The contract must state the purposes for which the storage space may be used by the tenant. It may also provide for some restrictions on such space, such as prohibiting the storage of live animals or any hazardous materials. It should also provide for the actions to be taken if the tenant causes any damage to the property or if he fails to pay the rent on time.
How to Draft the Storage Space Rental Agreement?
The following are the steps to follow while drafting a simple storage agreement:
- The landlord and the tenant will have to conduct negotiations among themselves regarding the important aspects of the transaction, such as the amount of rent, storage space access hours, security deposit, the term of the lease, etc.
- All of these terms that have been agreed to should be laid down in the agreement. This is important to record the understanding of the parties.
- The agreement should be drafted in a clear, detailed manner that does not leave any doubt as to the intention of the parties.
- The parties must go through the clauses of the agreement and make sure that their interests are protected therein.
- In a lease agreement of this type, the negotiations will pertain to the amount of rent, the amount of security deposit, remedies in the event of any default, etc.
- The agreement should be balanced between both parties and protect their rights.
Benefits of the Storage Space Rental Agreement
The following are the benefits and drawbacks of a storage space rental agreement
- The major benefit of entering into a written agreement is that it serves as proof of the conditions under which the storage space has been rented out to the tenant.
- In case the tenant fails to pay the rent on time or causes any damage to the property or violates any of his obligations under the agreement, the landlord will have certain remedies in place.
What Happens in Case of Violation?
The agreement will contain the remedies that will be available to the landlord if the tenant violates any of his duties under the agreement. For example, if the tenant does not pay his rent on time, the landlord can issue a notice on him, asking him to pay the rent by a specific date. The landlord can also deny access to the tenant and prevent him from entering the storage space in such a case.
If the tenant fails to pay the rent within the specified date, the landlord can terminate the agreement and ask the tenant to vacate the storage space(1). The landlord can then take possession of the storage unit. In case the tenant continues to use the unit even after the agreement has been terminated, the landlord can have the tenant’s property removed from the storage space.
If there is any damage caused to the storage space by the tenant, he will have to pay the necessary costs required to repair the damage.
This agreement is very important and must be created whenever a storage space or storage unit is being leased out. It contains the details regarding the agreement between the parties and also provides for remedies in case of default. This contract is an essential one and helps to protect the interests of the landlord in case there is any damage caused by the tenant.