A condominium can be the perfect solution to a simpler life if you’re open to downsizing. It can also be a stepping stone for those who are taking their first step to having their first home. While renting out a condo can be a little tricky because each falls under the jurisdiction of a project or building administration, adding a few clauses into lease agreement templates can weed out the unnecessary complications.
A condo is a unit or room in a building that shares common areas with other people, much like a hotel. Renting a condo is very similar to a residential lease. However, in a condo lease agreement, the tenant or lessee is subjected to association fees, which are typically used for building maintenance or improvements of its facilities.
Here are the different types of condominium rentals:
Renting out condominium units is very similar to residential leases, but it does have special considerations. Here are some tips to ease your leasing process:
Just like renting out a house, the landlord and lessee must have a common ground on the unit’s floor plan. Instead of asking several questions and going back and forth with the conversation, both parties can use these descriptors when discussing:
In a condominium, the neighborhood can be quite a bit “closer,” in a sense. Because of this, people can be nosey or noisy—depending on their mood—which can result in misunderstandings. Landlords must know what their neighbors are like to make sure that the potential lessee can fit in. This will save them from future complaints about their lessee. On the other side of the coin, the lessee must also ask questions about the neighbors to save them from potential issues.
All buildings have a set of guidelines, which the owner must abide by. When renting out the unit, however, the lessee will also be subject to these rules. It’s crucial for the landlord to review all the association’s guidelines before advertising the unit and before writing the lease agreement. It is typical for landlords to visit the association office to ask questions and get advice before advertising their condominium lease availability. In addition to this, they may also ask help from an attorney, so he or she can foresee issues before the condominium lease commences.
You don’t need to start from scratch with our free condominium lease agreement below. To make it easy to use, FormsPal formatted it like a lease form without compromising the integrity of legal lease agreement templates.
Step 1 – Download the lease form below
Use any of the lease agreement template document below:
If your computer asks you to install any program before you can open the lease form, download the correct program. You may have to make a free account before the download begins.
Step 2 – Add the landlord’s and tenant’s general information
For part 1 (Landlord) and part 2 (tenant) of the template, type the following sequentially:
Step 3 – Describe the condominium lease terms
In this clause, type the following:
Step 4 – Read the regulations of the condominium
Step 5 – Type the important dates of the lease agreement
Line 1: Indicate the beginning of the condominium lease.
Line 2: Indicate the date the lessee may occupy the space (usually the same as the first line, but can be scheduled a few days before or after the lease date).
Line 3: Indicate the date when payment should start. You may delay the first payment if the property needs repair or if a condo lease document needs to be finalized.
Step 6 – Identify the rental terms
Step 7 – Indicate the monthly rent
It will be best if the date in Line 4 is similar to the dates in lines 10 and 11 to avoid confusion.
Step 8 – Identify the amount of the security deposit
Step 9 – Indicate which utilities will be paid during the rental
Since a building’s utilities are shared with other units, the association is typically strict with payments. As such is the case, landlords get an estimate of a tenant’s electrical and water use. Then, they can add that to the monthly base payment. However, if both agree that the utilities will be diligently paid by the tenant, this provision of the condominium lease template may be subject to modifications through an attorney.
Step 10 – Read the standard limits of use
Should you need to make modifications to these condo lease agreement terms, please consult with an attorney. You may ask for assistance in adding a provision for other types of usage such as inviting family guests, business purposes, temporary events, and other circumstances.
Step 11 – Check if animals are allowed in the condominium
In most cases, ownership of pets is regulated by the association. Please refer to their terms or rules and regulations before finalizing section 11. If animals are allowed in the building, the condominium property owner may either:
You may also want to check with your state law regarding ownership of exotic animals or ant farms, just to be sure. Remember: Both parties are liable for what happens inside their condominium units. Landlords, in particular, have obligations to resolve any issue caused by their tenants.
Step 12 – Explain the maintenance process
Step 13 – Determine insurance arrangements for tenants
Decision point E: Choose E1 if the tenant is required to have insurance during the lease. On the other hand, the tenant may choose E2 and simply waive the property owner of any responsibility and acknowledge the risks of not being insured. On the blank provided, the tenant must write his or her initials in print.
Step 14 – Allow or prohibit subletting
Decision point F: Tick the first box (F1) if the lessee is NOT allowed to get a roommate or allow another person to sublease the condominium on their behalf. If this is allowed, tick the second box (F2). Take note that this clause is different from having guests over. If the set-up is unclear, you may ask the help of an attorney to clarify.
Step 15 – Set default arrangements of the condominium lease agreement
Line 5: Indicate how many days the lessee has to cure the breach of contract. Based on the terms of this provision, landlords have the right to press charges according to law or evict tenants if the breach is not cured.
Step 16 – Disclose lead-based paint warnings
Decision point G: Tick the first box (G1) if the condominium property and the building do not use lead-based paint. Tick the second box (G2) if it does. The lessee should then write his or her initials in print on the blank provided.
This disclosure is not only required, but it is also the right of the tenant to know about potential health hazards.
Step 17 – Sign the condominium lease agreement
Print the condominium lease template. Afterward, write the date of contract signing (stamped or in print),
For both parts 3 and 4, write the following for the landlord and the tenant, respectively:
In addition to signing the last page, both parties will also need to affix their signatures on every page.
A condominium is a profitable asset to lease out, especially nowadays when people are downsizing and aiming for a simpler lifestyle. Though it comes with lots of perks like shared facilities, a condominium lease comes with special provisions and stricter regulations. There are also additional monthly payments and tougher usage monitoring of renters to avoid negative circumstances. Still, this can be rewarding and easier with the help of lease agreement templates, which are free for download on FormsPal.