Management Handbook Form Instructions s1

Management Handbook Form Instructions RA-1r MODEL LEASE AGREEMENT USDA-RURAL HOUSING SERVICES 515

The RA-1r Rental Agreement is used for all USDA-RD Tenants. Every head, co-head, spouse (Tenant) must sign the Rental Agreement on or before the effective date and before keys are given at move-in. Renewal Leases must also be signed on or before the effective date.

General Requirements:

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

B. If you MUST make a correction, draw a line through the error, record the correction/change, and require that ALL signers of the Agreement initial the change, etc.

C. Always explain the terms and conditions of the Rental Agreement to the Tenant(s) at or before the move-in. This is a very comprehensive and detailed lease that cannot be rushed.

D. Give a copy of the completed and signed Rental Agreement to ALL adult Tenant(s).

E. Never give the apartment keys to the Tenant(s) until the Agreement and ALL attachments are signed and completed. NO EXCEPTIONS.

Completing the Rental Agreement:

Fill in the paragraphs listed below as follows:

NOTE: Be sure to fill in the “Apartment Community Name” at the top of page 1.

I. Parties to the Dwelling Unit:

Complete the sections as indicated in this paragraph. Be sure to list the “head” of house as the “Tenant” then Co-Tenants, and others (usually minors, first and last names, please) who will reside in the unit. For example: Tenant - John Doe. Co-Tenants: Jane Doe and Michael Doe – NOT Mr. and Mrs. John Doe; nor, Jane and John Doe.

II. Occupancy: Please read/explain carefully.

III. Term of Lease:

The commencing date will be the first day you will charge rent. This is not necessarily the day the Tenant(s) physically occupy the unit. The ending date will always be the last day of the move-in month on the next calendar year, unless the move-in date is the first day of the month.

Example 1: Lease beginning date: June 21, 2011 Lease ending date: June 30, 2012

Example 2: Lease beginning date: July 1, 2011 Lease ending date: June 30, 2012

IV. Eligibility requirements/RD Required Lease Clauses:

USDA Lease (3/11) Page 1 of 3 RA-1r Management Handbook Form Instructions Carefully read and enter the needed information on the lines provided, paragraphs a), b),c ), and f).

V. Rental and Utility Rates: Rent Change Provisions (Rental Assistance)

For Rental Assistance, enter in the applicable utility allowance for the unit size, the net Tenant rent. If the Tenant will receive a utility reimbursement, enter “zero” on this line. Then enter in the amount of the reimbursement on the next line.

If rental assistance is terminated as explained, enter in the Basic Rent and then the Note Rate Rent as indicated for the unit size.

VI. Rental and Utility Rates: Rent Change Provisions (Plan II)

a) Fill in the rental and utility amounts as indicated for the unit size. In addition please mark the utilities as relevant to your property. Who pays? The Tenant or the Property?

Escalation Clause: It is very important to review this paragraph fully with the Tenant.

VII: Rental Payment/Utility Payments:

Please complete the paragraphs as requested and on the lines provided in these sections.

VIII: Security Deposit:

The Basic Rent for one (1) month per the unit size. The next section needs the dollar amount of 1/3 of this Basic Rent to be paid if the Tenant does not pay the full amount at move in. The balance of the monies owed will be as listed on the “Security Deposit Payment Agreement” (form RA-8hr) that will be signed and attached to the lease.

IX. Illegal Controlled Substance and Domestic Violence Violations:

Paragraphs will be reviewed with the Tenant.

X. Tenant Responsibilities: I agree to….

For our properties, list the Property’s Management Office for rent, and the power company name for electricity. Paragraphs b) through g) will be reviewed with the Tenant. For Paragraph h) please refer to the house rules for the number of days needed. Paragraphs I) through L) will be reviewed with the Tenant.

XI – XVII: These paragraphs will be reviewed with the Tenant.

XVIII: Attachments:

Mark off “all” of the boxes that pertain to the household for the unit and include the addenda with the lease in the Tenant’s file.

XIX: Signatory Clause:

Ensure that all signatures are dated “on” or “before” the effective date of the Lease, please.

The Owner/Owner's Agent may never change the Rental Agreement "rent" up or down without USDA Lease (3/11) Page 2 of 3 RA-1r Management Handbook Form Instructions issuing a "Rental Agreement Amendment" (form RA-4r or RA-4RA) to the Tenant(s) as per instructions on the appropriate form.

For questions or concerns regarding the completion of this Lease, please contact Compliance Department personnel for assistance.

USDA Lease (3/11) Page 3 of 3 RA-1r