What is a Nevada Lease Agreement?
A Nevada lease agreement is a legally binding document, signed by a property owner (lessor) and a renter (lessee), which illustrates the terms and conditions agreed upon between both parties. The agreement must be signed and dated and contains information on the rental price, frequency of rents, length of contract, and other associated information. To use this document properly, both parties must fill the form in its entirety, agree on all the terms and conditions before signing, and then review the last document carefully, as once it’s signed , it is legally binding.
This document is very important in officializing an agreement between a landowner and a renter. Even though an oral agreement is enough to legally form a rental relationship in Nevada, it is always advisable for the agreement to be in writing. For example, an oral agreement doesn’t create a leasehold interest, while a written agreement does. In other words, an oral agreement does not grant the tenant a right to remain for any specific period of time, while a written one does, meaning that if a lease is in writing and if it is not terminated, it must be honored by any future landlord.
Essential Elements of a Nevada Lease Agreement
To be binding and enforceable, lease agreements must comply with the laws of the State of Nevada. These laws are found in the Nevada Revised Statutes Chapter 118A (Landlord and Tenant). In this section we will review the key components of a Nevada residential lease and the relevant requirements of Nevada law. We will also provide other helpful information such as information about Nevada statewide and local ordinances that affect lease agreements, and a model lease agreement that includes legal requirements for Nevada landlords.
Lease terms
As enumerated in NRS 118A.200(1), the following lease terms must be provided by the landlord to the tenant in writing, at or before the time of entering into the lease agreement:
- The period of the tenancy, i.e. month-to-month, week-to-week etc.
- The base rent, when the rent is due, and the date and place the rent is to be paid.
- Whether utilities are included in the rent, and if so, which utilities.
- Other services provided by the landlord and their cost.
- Any deposits or fees owed by the tenant prior to taking possession.
- By what means are rental payments to be made. For example, a mail drop, property manager office, bank account, Dropbox, etc.
- May the tenant assign or sublet the rental?
- What amount and how much notice must be given by either party to terminate the tenancy?
This information is not required to be provided to the tenant every month, but again, all lease terms are mandatory to be provided to a tenant before they take possession or within 10-days of signing the lease agreement. The requirement can be satisfied by providing the tenant with a signed copy of the lease agreement.
Security deposits
NRS 118A.240 governs the requirements regarding security deposits in the State of Nevada. The lease agreement must state whether a security deposit is required, how much the deposit is, and the terms under which the deposit will be returned to the tenant. The landlord has no more than 30-days to return the security deposit to the tenant. In Clark County (Las Vegas), security deposits are often required to be in trust with an interest account. The security deposit must also meet the legal requirements outlined in NRS 645.050. Failure impose a legally compliant written security deposit agreement gives tenants the lawful right of normalizing any non-compliance.
In the event the landlord withholds the security deposit, the landlord must provide the tenant with an itemized list of how the funds were used within 30-days, and an explanation of their application to the tenant. Nevada landlords cannot withhold for normal wear and tear, nor can they withhold for repairs required by law such as the rebuilding of a structure after a fire.
Tenant obligations
Every lease will contain provisions that delineate the requirements of the tenant to maintain the property, including the land surrounding the property. These obligations must be clear to the tenant or the tenant may be excused from liability. The tenant must understand their obligations under the lease agreement, so these provisions should be in writing in plain language. Whether the tenancy is tenancy-at-will or tenancy for years, the tenant is obligated to use and care for the property in a manner that is lawful and reasonable under the circumstances. NRS 118A.320 enumerates the obligations of the tenant, including but not limited to:
- Must keep the property in a clean and safe condition.
- Must maintain the plumbing in reasonable condition and immediately remediate any damages.
- Maintain the sanitary condition of the dwelling and dispose of waste appropriately.
- Use all electrical and plumbing facilities in reasonable manner and only for intended purposes.
- Keep the unit undamaged and report damages immediately.
Any material breach of these obligations, as determined by NRS 118A.320, is cause for termination of the tenancy. NRS 118A.330 grants landlords the right to recover consequential damages caused by the tenants breach of duty.
Statewide ordinances
The State of Nevada has passed several ordinances that apply throughout the state. These ordinances effect the rights of both landlords and tenants. Some of the most important ordinances will be discussed below:
Nevada Lease Agreement PDF Format
The downloadable Nevada lease agreement PDF is available as a convenient way to access and create a lease without starting from scratch. The PDF offers a standardized lease agreement format that includes all relevant sections for a residential lease in Nevada. Users can fill out the PDF online or print it out for manual editing. This makes it easy for landlords to provide a lease to a tenant and get information back quickly.
One advantage of using the downloadable PDF is that it saves time by providing a pre-structured lease agreement. It also saves money by providing a free version of a standard lease and adds the convenience of being able to edit online, download, print or email the lease. For new landlords, having this kind of resource at their disposal allows them to avoid significant expense related to the hiring of an attorney, even if a legal review is still necessary at some point in the process.
Using the downloadable PDF is straightforward. After downloading, the user should read through the entire document and familiarize themselves with the structure. From there, the user can begin to fill in contact details for both landlord and tenant. The location date details are important, as are the agreed rental terms, including the rental amount, security deposit and any other payments due. Finally, there are rules and conditions details that both the landlord and tenant must review and either cross out or leave in place.
Customizing the PDF to fit specific circumstances allows a landlord to define their own particular rental situation. The key is a comprehensive review of the final product to ensure that the details will work as intended. Landlords who want to have a going forward example of a lease can take the time to take the finalized form and look for areas to add some additional detail if needed. Having a standardized lease agreement and then customizing it allows for consistency in dealing with tenants, while setting the stage to avoid problems.
Legally Required Provisions of a Nevada Lease Agreement
Several important disclosures are required by Nevada law. These disclosures include, among other things, and the following:
Lead-Based Paint and Lead-Based Paint Hazards Disclosures. All properties built before 1978 are subject to the Federal Residential Lead-Based Paint Hazard Reduction Act of 1992, also known as Title X, as amended. This law requires landlords and sellers of residential property to provide a disclosure to all lessees/renters about potential lead-based paint or lead-based paint hazards.
Sex Offender Disclosure. Homeowners, condo and HOA associations, property owners, and property managers in Nevada are required by statute and by the Administrative Code to provide lessees/tenants with a written notification of where to access registered sex offender information.
Carbon Monoxide Detection Devices. Nevada law also requires every rental unit to have carbon monoxide detection devices installed. The LED Notification should be used in addition to a home’s smoke detectors and works as a hybrid battery unit with a pre-alarm audible sound and a digital display. It requires minimal installation and no maintenance.
Fuel Burning Equipment, Chimneys and Flues. The Nevada department of Business and Industry Division of Public and Behavioral Health has established regulations for the proper construction, maintenance, and operation of fuel burning equipment such as fireplaces, chimney systems, furnaces, water heaters, and hearths of solid-fuel burning equipment.
Lead Hazard Information Pamphlet 2017. A pamphlet that must be provided to all renters before renting any home built before 1978.
Reasons for Using a Lease PDF
When it comes to efficient document handling for property leasing, using a PDF format is highly advantageous for both landlords and tenants.
One of the clear advantages of a PDF file is that recipients will see the same layout and content that the sender intended. No matter what operating system, software, or email program you are using the PDF file will not be altered by varying settings. PDF files maintain their integrity as documents. If your of the modest number of people who still use abacus (or many of the other old methods to use on selecting the best lease agreements in Nevada. You may not wonder about this) and a printed copy is the best choice for your lease agreement, you will be glad to know that PDF files can be printed and viewed on paper without losing any information. As long as the tenant has the software to view it, such as Adobe Reader, he or she can read the document on any computer, even a mobile phone .
Another benefit for landlords is that with a PDF file, sensitive information will be encrypted, such as banking details or personal information. The files can only be accessed with the proper software or password. This is advantageous for landlords because their personal data-like how much rent is collected every month-is not at risk.
A major advantage for tenants is the fact that an agreement can be scanned as a PDF and then sent to a tenant via email. Tenants can then view it; print it as needed and sign the agreement. This means that a landlord does not have to make a trip to the post office to send an agreement once the application has been approved.
PDF files can also be sent with a time stamp. This means that if a dispute arises, you’ll have proof of when you signed it (and how long it has been binding) and when it was sent to the other party.
Helpful Hints for Tenants: The Nevada Lease Agreement
For Nevada tenants, it is essential to understand your lease agreement before you sign. In general, you should review the entire document and ask the landlord questions about particular terms if you do not understand what they mean. You should be paying attention for certain things.
What Are You Getting in the Lease?
Put simply, you should have a good idea of the space you are getting in the lease. Generally speaking, there are two places where information on this can be found. One place you can find information on what space you are getting is under the "Premises" definition. The "Premises" definition will include what portions of the property you are renting. The tenancy could be for multiple lots and/or buildings or just one. This definition will also include what you get with that space. For example, if you are renting a retail space, the "Premises" definition may include the retail space itself, storage areas, parking spaces, and roof access rights. You may also find information on the space you are getting in the "Demised Premises" section of the lease. The "Demised Premises" section will include the address and details of the space you are renting.
How Much Is Rent?
Naturally, you should know how much you are paying in rent every month. It is typically found in the "Rent" section of the lease. The amount is usually described as an hourly, daily, monthly, yearly or weekly payment. Depending on the lease type, some commercial or residential leases may use a "base year" system whereby the lease specifies a base rent amount for the first year and increases by a percentage every year thereafter. The percentage increase in rent every year should be in the "Rent" section also. In addition to the "Rent" section, you should check the "Security Deposit" definition to see how much the landlord is charging for a security deposit. You should also find out how much the landlord is charging as a cleaning deposit. The "Security Deposit" definition should tell you what the cleaning deposit amount is.
What Happens If You Don’t Pay Rent?
The "Default" or "Late Charges" section of the lease tells you what happens if you do not pay the rent on time. Generally, the lease will state that you must pay a certain amount every day, week, or month that you do not pay the rent. You should check the "default" or "additions to rent" definition of the lease to see how much you will be losing every month that you do not pay rent to the landlord. From the above discussion of the "Rent," "Security Deposit," "Cleaning Deposit," and "Default" definitions, it is important to note that you should know how much you are paying in deposits and in late charges for failure to pay rent. You should also know how much the landlord would charge you to break the lease. A lot of these issues are covered under the early termination / lease termination / early termination right clauses, but for specific amounts, you should check the definitions.
What Are Your Obligations in the Lease?
You should definitely know every obligation you have under the Nevada lease agreement. Generally, the "Obligations" or "Tenant" or "Tenant’s Obligations" section will describe your obligations in some fashion.
What Are the Financial Obligations?
Generally, the New Nevada lease agreements have several financial obligations in the lease:
What Are the Utilities Obligations?
You should check the "Utility Obligations," "Utilities" or "Property Charges" definitions for information on who is responsible for paying what utilities. This will generally be described in relevant sections of the lease. For example, the Landlord may be required to provide air conditioning, heating, water, sewage, and janitorial services while the Tenant is responsible for electricity. More is often left unsaid in the Nevada Lease than said. You should carefully review the entire lease before signing so there are no surprises later.
Common Mistakes to Avoid When Dealing with a Lease in Nevada
When it comes to drafting a lease agreement in Nevada, errors or oversights can lead to significant headaches for both the landlord and the tenant. Below are some common mistakes to avoid.
1. Omitted Essential Terms
When drafting your lease or rental agreement, it is essential to include all necessary terms. Failure to do so may render your contract invalid, entitling a party to get out of the deal. A few essential terms commonly overlooked include the following:
• Names of all leasing parties
• Address of the leased property
• Date the agreement becomes effective
• Duration of the agreement
• Amount of rent due, payment schedule, and acceptable payment methods
• Deposit amount, purpose, and any conditions for its return
• Maintenance and repair responsibilities
• Whether pets, smoking, and/or subleasing are allowed, and if they require landlord approval
• Options for renewing or terminating the agreement
• Who is responsible for utilities, whether it is the landlord or the tenant
• How to resolve disputes, as well as arbitration and attorney’s fees
2. Incorrect Document
This seems like an obvious point but it is worth mentioning because it does happen—a lot. Sometimes, you may have an agreement that appears clearly to be a lease agreement, but is actually more like a month-to-month rental agreement or even an oral agreement between the parties. Using the wrong document could mean delays or denials in terminating an agreement or discussing renewing the agreement with the other party. Further , it means it may take more time and money in court if any legal issues arise.
3. Neglecting Landlord Rights
Many commercial leases have fewer protections for tenants than residential agreements do. This means it is critically important for landlords to specify what they may or may not do on, or with, the property. For instance, including a provision stating that the landlord has access to the commercial property at any time provides protection if there should be an emergency with the property. However, it may not be a good idea to include the same provision in residential leases. An invasion of tenant privacy could be grounds for a lawsuit.
4. Missing Return of Security Deposit
Security deposit returns must meet very specific requirements for the state of Nevada. To cover your bases, always go through the process of returning the security deposit. This means writing a cover letter explaining any deductions and your reasons for them. This should include receipts, estimates, bills or invoices. Additionally, check Nevada’s Real Estate Division for all the proper amounts and forms.
5. Not Providing a Written Notice
If you are changing a term or clause of the agreement, you always need to send the tenant a written notice explaining the change(s). Failure to do so can result in invalidating that change. You may also need to send a written notice to terminate the agreement if it is for a period of over three months.