As a landlord renting out property or a tenant renting the property, for the safety of your money and to gain an understanding of what your renting out or renting, you would definitely want to consider having a rental agreement signed and dated by the landlord and the tenant. This agreement is a form of insurance for both parties involved. The rental agreement is a legally binding contract, that explains the rent payment and payment schedules, it discusses the options of pets, damages, and property usage. Rental agreements are used for a variety of items and types of properties; condos, apartments, houses, mobile homes and lots, even storage units.

When used on behalf of the landlord, the rental agreement is to give the tenant an idea of what type of property they are renting, whether it's a condo, trailer, apartment, or home. It explains exactly what is expected of the tenant during the rental period, the type of property the tenant is actually renting and who is responsible for different types of damages to the property, and who to notify for specific issues that may arise while renting the property.

When tenants read over the rental agreements and find flaws or disagree with a part of the agreement, before signing they can make corrections to the agreement. For example, if there is damage to any part of the property prior to the tenant moving in, the tenant can list the damages on the rental agreement and save themselves for having to pay for the damages once they move off the property.

If you want to insure yourself against fraudulent claims, it would be within your best interest as the landlord or tenant, to create a rental agreement if one is not already created, have it signed by both yourself and landlord or tenant to make sure that you have proof of rental and knowledge of the property being rented. Again a rental agreement document covers both the landlord and the tenant against any legal suits should a disagreement or unresolved issue arise during the rental period.