Verbal Agreement with Tenant


As a landlord, it is crucial to ensure that any agreements made with tenants are clearly outlined and agreed upon before the start of their tenancy. One such agreement is the verbal agreement, which can sometimes be confusing or difficult to enforce. In this article, we will explore the importance of having a verbal agreement with your tenant and the best practices to follow.

Firstly, it is important to understand what a verbal agreement is. It is an agreement made between the landlord and the tenant that is not in writing. Verbal agreements can cover a range of topics, including rent, security deposits, and maintenance responsibilities. It is important to note that verbal agreements are legally binding, but they can be harder to enforce than written agreements.

Why have a verbal agreement with your tenant?

There are several reasons why landlords may choose to have verbal agreements with their tenants. One reason is that it can be a quick and easy way to make an agreement without having to draft a formal written agreement. It can also help build trust between the landlord and tenant and provide a sense of flexibility.

However, it is important to note that verbal agreements can also be risky. Without a written agreement, it can be difficult to prove what was agreed upon if there is a dispute. It can also be challenging to enforce a verbal agreement if the tenant does not uphold their end of the bargain.

Best practices for verbal agreements with tenants

To ensure that your verbal agreement with the tenant is legally binding and enforceable, it is important to follow certain best practices. Firstly, it is recommended to have witnesses present when making the agreement. This could be a friend or family member who can attest to what was agreed upon.

It is also important to document the agreement in writing as soon as possible. This could be in the form of an email or a letter that outlines the terms of the agreement. It is important to include all the details of the agreement, including the amount of rent, what it covers, and any other important details.

Another important best practice is to ensure that the agreement complies with local and state rental laws. Landlords should be aware of any specific rules or regulations that apply to their jurisdiction and ensure that their verbal agreement is in compliance with them.

In conclusion, verbal agreements with tenants can be a useful tool for landlords, but they should be approached with caution. Best practices, such as having witnesses present and documenting the agreement in writing, can help ensure that the agreement is legally binding and enforceable. Always be aware of local and state rental laws when making any agreements with tenants, and never hesitate to seek legal advice if needed.