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Thing to include in your lease (part 1)

Thing to include in your lease (part 1)

When writing a lease agreement, it might be useful to make sure you have thought of the following things to make it rock-solid.
Definitions and Interpretations

It is important to make sure your Tenant understands what they are signing. As such I included a Definitions and Interpretations section in the beginning of the contract. In this way you are sure your tenant understand what they are reading and signing. This may sound like such a waste of time and space, but honestly in Botswana we have learned, rather be on the safe side.

Lease Duration
This basically state the duration of the lease, will it be a full 12 months (full year) or will it work on a month to month basis from the start. Something to note in Botswana, once the original lease period (time duration) has passed the lease automatically turns into a month to month, continuing the agreements within the original lease. I personally like this principle as it’s great for us lazy landlords who often fall behind our paper work.
Rent Amount

For how much will you be renting out your property?

Also remember to add the % by which this amount can increase per year. This is important for if this is not stipulated your renter may refuse to pay the increased amount. As such one will have to be happy with your previous yearly amount or you will have to start searching for new renters with a 30 day notice period letter.

The % increase is usually that of inflation to 10%. Also if you want to increase the rent (after the initial time period) you as landlord has to give a 30 Day Rent Increase Notice Letter.

Additional Charges

This section is very important, your tenant will want to know exactly what they are paying for. As a point of interest it is generally accepted in Botswana that the Landlord will pay for all of the expenses except Electricity and Water (if so stipulated in the contract).

Be sure you know what your rental property cost you per month, and be sure what your actual profits will be. Remember to consider your wear and tear, maintenance and those drains and geasers that never seems to be working as they should.

Payments and Deposit

It is always important to keep all your receipts, especially when you will have to proof to your tenant that the expenses occurred was done by them (the tenant). It is also for the purpose of the rental deposit. A landlord is not allowed to make deductions from the rental deposit without proof, it is really that simple.

Release, Waiver and Liability and Indemnity Agreement

This is a section protecting you against certain types of liabilities.

It is a “must” that you do have something similar to this in your contract, simply to ensure your financial safety.

Look out for part 2 for more.

In the meantime, feel free to request a demo and see how the system works.

Request a Demo

If you would like to know more information as to how you should get quality tenants and how you should check and verify them, feel free to ask.

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