RA- 1 Tax Credit: “Residential Rental Agreement”



RA- 1m RENTAL AGREEMENT – MARKET (Monarch only)

The “Rental Agreement” - Market must be used for all conventionally financed, HUD 221-D4 and non-subsidized Housing Credit properties. Every new resident must sign this Rental Agreement on or before the effective date of the move-in; and before the apartment keys are issued. This “Rental Agreement” must also be used when renewing a resident’s occupancy and Lease term. NOTE: Texas properties will use the Texas Apartment Association Lease. However, the instructions listed below must be followed.)

GENERAL REQUIREMENTS:

1. NEVER use white out on the Rental Agreement, amendments, addenda, riders, etc.

2. If you MUST make a correction, draw a line through the error, record the corrections/changes, and require that ALL signers of the Agreement initial the changes.

3. ALWAYS explain the terms and conditions of the Rental Agreement to the resident(s) at or before the move in.

4. For Housing Credit properties, fax or mail a copy of the completed Rental Agreement to your Occupancy Supervisor for approval BEFORE move-in or Lease renewal takes place.

5. Give a copy of the completed and approved Rental Agreement and all attachments to each resident who has signed the Lease. VERY IMPORTANT!!

6. Send a copy of the completed Rental Agreement to your Bookkeeper for verification and reference.

7. NEVER give the apartment keys to the resident(s) until the Rental Agreement is signed. NO EXCEPTIONS!

8. Any questions or concerns regarding the Rental Agreement (Lease) should be directed to the Regional Property Supervisor. Any changes, directions, and/or exceptions granted should be followed up in writing for compliance, company policy and legal purposes.

COMPLETE THE RENTAL AGREEMENT AS FOLLOWS:

RESIDENT(S) NAME(S) (in the first paragraph):

List the name(s) of ALL adult signers (head, co-head, and spouse of household) separately. For example, John Doe and Jane Doe and Michael Corrleone – NOT Mr. & Mrs. John Doe or Jane & John Doe. For Housing Credit properties, persons who are 18 years and older who are a “dependent” (by HUD definition*) of the household do NOT need to have their name(s) added here or to sign the Lease.

*HUD Dependent Definition for age 18 and older: persons who are not the head/co-head/spouse, who are handicap/disabled OR who are a full-time student.

PREMISES:

Fill in the unit number, then the property’s name, address, city, state and zip code.

TERM:

Move-In:

• “Initial Term Beginning” date: the first day rent will be charged for the unit. The Rental Agreement signature must also be dated on or before this “Initial” date.

• “Ending” date: ALL Rental Agreements must end on the LAST day of a month. Which month used will be specified by the length of term agreed upon by the resident(s) and the Owner/Agent. For example:

1. The ending date for a six-month Lease is the last day of the sixth month after the beginning date month. For example, move-in date is 1/15/05, ending date will be 7/31/05. Note: Six months is the minimum Lease term for Housing Credit properties.

2. The ending date for a twelve-month Lease is the last day of the eleventh month after the beginning date month. For example, move in date is 1/15/05, ending date will be 12/31/05. Note: Twelve months is the maximum Lease term for Housing Credit properties because they must follow the HUD guidelines for annual recertifications.

3. The ending date for a month-to-month Lease is the last day of the first full calendar month. It will then continue on a month-to-month basis as stated. NOTE: Your Regional Property Supervisor MUST approve month-to-month Leases on new move-ins.

Renewal:

Lease renewals can be “month-to-month”, “six-month”, or “twelve-month. Any exceptions to these terms must be approved by the Regional Property Supervisor in writing.

For any increase in the rental amount, make sure that the Resident’s household has received at least a 30-day prior notice of the change.

NOTE: The Lease term ending date for Housing Credit properties must be on or before the date the next annual recertification is due. NO EXCEPTIONS!

RENT:

For Move-In and Renewals:

Fill in the “Monthly Rent” rate (the full undiscounted scheduled rent) for the resident/unit where indicated. The resident(s) should pay their rent at the Manager’s Office.

LATE CHARGES:

The Property Manager has NO authority to waive or reduce any late fees. If rent

and all other charges due are not paid in full on or before the 5th day of the month, a late

charge of $25.00, plus $5.00 per day (up to ten percent (10%) of the monthly rent) will be

assessed until all amounts owed are paid.

Resident will pay an additional $25.00 for each dishonored check.

RENTAL CONCESSIONS:

Enter the total amount or amounts of the free rent or other rent concessions pertaining to the current Lease term. Please note that the concession will have to be repaid under certain conditions as stated in this paragraph.

DEPOSIT:

Fill in the appropriate amount – see “Security Deposit Policy” - to find the correct amount for your property per unit size. For “renewals” fill in the amount the household previously paid. If the Security Deposit was waived by your Regional Property Supervisor at move-in, write, “waived at move in” on the line indicated. If there are other “deposits” required, please fill in the amount and specify what the deposit is for. If there are none, write “N/A” on the line indicated. Remember that the resident may not use the deposit to pay their monthly rent.

NOTICE OF TERMINATION:

This paragraph is self-explanatory.

EARLY TERMINATION:

Owner/Agent and Resident(s) must initial these boxes. The early termination fee amount is currently $600.00. All Market and non-assisted Housing Credit properties will insert this amount and the Property Manager has NO authority to waive this fee. Only the Regional Property Supervisor can waive this fee. Any waivers should be in writing.

FACILITIES:

This paragraph is self-explanatory.

USE:

In addition to the Resident(s), list the name of every person who will reside in the apartment. Persons not listed here must not stay in the apartment for more than 7 days in any given month.

NOTICE OF ABSENCE:

This paragraph is self-explanatory.

UTILITIES:

Check the box or boxes that are appropriate for your property to indicate the utility(ies) the Owner will pay. Enter “N/A” in the boxes that do not apply.

UTILITIES BILLED BY OWNER through OWNER DISCLOSURE PARAGRAPHS:

These paragraphs are self-explanatory. Please read over carefully.

DESIGNATION OF AGENT AND ALTERNATIVE ADDRESS:

The resident(s) need(s) to supply the name, address and telephone number of the person or persons who can act on their behalf as stipulated. This information should be updated at least annually or when the Rental Agreement is renewed.

SIGNATURE LINES:

The Property Manager and ALL adult head and co-head(s) of the household listed in the first paragraph on page one of the Rental Agreement must sign and date the agreement. Remember that the Rental Agreement CANNOT be signed after the effective term beginning date for MOVE-IN, as well as, RENEWAL Leases.

NOTE: For Housing Credit properties persons 18 years and older who are a “dependent” of the household (by HUD definition “see above”) do NOT have to sign the Rental Agreement.

CO-SIGNERS (Guarantors):

In cases where it is necessary for a resident or residents to have a co-signer or guarantor of their Rental Agreement, the appropriate signatures and dates should be entered here. Be sure to follow the Manager’s Handbook Policy and Procedures when applying this paragraph.

ATTACHMENTS TO THE RENTAL AGREEMENT:

Be sure to attach form RA-1d “Resident Receipt of Documents Checklist” and all relevant addenda to the Rental Agreement. These documents are considered to be part of the Rental Agreement – NO EXCEPTIONS!

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