What Is a Tennessee Lease Agreement?
The Tennessee Lease Agreement is a legal document created under the Tennessee landlord-tenant Act. It is used for the purpose of the documentation of a standard Tennessee lease agreement between a landlord and tenant(s). The document will provide information with regard to terms and conditions, Tennessee renter’s rights, as well, information regarding rent, late fees, and other needed information. Both parties should read through the document carefully to be certain that all parties understand the agreement.
The most commonly used Tennessee lease agreements are the standard residential lease agreement, Tennessee rental laws month to month, a roommate agreement, a sublease agreement, a lease to own agreement, and a commercial lease agreement.
Who Are the Parties to a Tennessee Lease Agreement?
In the simplest form of an agreement, there are only two parties to the agreement.
- The tenant/lessee: He/she is the person who gets into an agreement to live in the property owned by the owner and pay a stipulated amount for the same each month.
- The owner/lessor: He/she is the person who owns the property and who allows the tenant to live in the property for a specific time frame.
Purpose of a Tennessee Lease Agreement
The purpose of this agreement is to bind a tenant and an owner to the terms and conditions contained within. This is done by making each party sign this document on a certain date. Several aspects of such a contract will have to be fully discussed between these two parties before entering this lease.
Contents of a Tennessee Lease Agreement
A Tennessee Lease Agreement consists of the following:
- Names of the Parties: The legal names of both the landlord and the tenant.
- Description of the property: The property should be adequately described along with its street address of the leased property as well as the city and the county.
- Duration of the lease: The length of the term of the lease should be properly mentioned in the agreement (including the beginning and ending date). Though the term should be completed, Tennessee renter’s rights to break the lease also exist. This means that upon the payment of balance rent, the renters can pre-maturely break the lease.
- The amount of rent that will be paid over the life of the lease, the amount that will be paid each month, the date the rent is due, how rent may be paid, when rent is considered late, the amount of any late fee, and the amount of any NSF fee.
How to Draft a Tennessee Lease Agreement?
An effective agreement can be drafted using the following guidelines:
- Familiarize yourself with your state’s laws.
- Write an explicit and easy-to-understand contract such that both parties will understand and abide by it such that there is no ambiguity.
- Include all the stipulations that are required. The lease agreement can include a wide range of stipulations, including a pet policy, what installations can be made, who covers what repairs, and penalties for late payments. The more specific the stipulations are, the less chance of having to face disputes in the future.
Benefits and Drawbacks of a Tennessee Lease Agreement
- Balanced cash outflow: The biggest advantage of leasing is that cash outflow or payments related to leasing are spread out over several years, hence saving the burden of one-time significant cash payment. This helps a business to maintain a steady cash-flow profile.
- Better planning: Lease expenses usually remain constant for over the asset’s life or lease tenor or grow in line with inflation. This helps in planning expenses or cash outflow when undertaking a budgeting exercise.
- Termination rights: At the end of the leasing period, the lessee holds the right to buy the property and terminate the leasing contract, thus providing flexibility to the business.
- Lease expenses: Lease payments are treated as expenses rather than as equity payments towards an asset.
- Processing and documentation: Overall, to enter into a lease agreement is a complex process and requires thorough documentation and proper examination of an asset being leased.
What Happens in Case of Violation?
The only legal way that a landlord can remove a tenant from a rental unit is by winning an eviction lawsuit with the court. Even after winning the eviction, the landlord is not authorized to evict the tenant. That must be done by a law enforcement officer. The tenant can sue the landlord for damages if the landlord illegally attempts to force the tenant to move.
Landlords must carefully follow all the rules and procedures required by Tennessee landlord-tenant Act when evicting a tenant; otherwise, the eviction may not be valid. Although these rules and procedures may seem burdensome to the landlord, they are life. The rules help ensure the eviction is justified and that the tenant has enough time to find a new home.
The Tennessee lease agreement is as effective as any other lease agreement in providing clarity and security to the tenant as well as the owner of the property being leased, which helps in avoiding any legal disputes. At the end of the stipulated period mentioned in the agreement, the tenant also has a right to buy the property if he/she wishes to be a great investment thus. In case any dispute arises, it can be solved with the help of a legal suit or meditation sessions.
Sample Tennessee Lease Agreement
A sample of the Tennessee Lease Agreement can be downloaded from below.
Download this USA Attorney made Original Agreement for only $9.99