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A contract provides protection when renting out a home

Delaware property owners often decide to turn their homes into rental units to generate income. When offering a house for rent, a lease agreement may protect a landlord from a tenant’s property damage or failure to pay. 

According to Delaware Code Online, a rental agreement generally operates on a month-to-month basis unless otherwise stated in writing. Either the landlord or tenant has the right to terminate an agreement by providing a written notice at least 60 days in advance of a termination. 

Outlining a tenant’s rights in using a property

A well-written rental agreement clearly outlines how a tenant may use the home. Before advertising the property’s availability, an owner needs to review the local zoning laws. Some local laws prohibit two families from living in a single-family residence. A rental contract may forbid a tenant from subleasing a home or renting it with roommates. 

If a landlord prefers to prohibit a tenant from operating a business from a home, a rental contract must make note of it. Some employees, however, work remotely. A tenant may need to wire a home to accommodate the required technology. A rental agreement may include terms under which a tenant pays for any damage that the installation causes. 

Making allowances for rental negotiations

To attract high-quality tenants and receive the maximum amount of rent that the market permits, a landlord may require flexibility. Creating a contract with negotiable provisions may allow two parties to work out a mutually beneficial arrangement. It may also allow them to come to an agreement in less time. 

As noted by Forbes magazine, a property owner needs to have all of his or her rental contracts and confirmations in writing. Because renting a home is a commercial endeavor, maintaining detailed and thorough records helps if legal, accounting or taxation issues arise. 

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