Landlords
A series for all of the Landlords.
#4 in the series; Landlords be specific when writing your lease
Many of the misunderstandings between a landlord and tenant can be solved before the lease/rental agreement is signed. It is important for the landlord to protect themselves and the landlord/tenant relationship by listing critical information in each lease/rental agreement. A rental agreement can be either written or oral, I recommend written. It can be for a fixed time like a one year lease, a month-to-month tenancy, or until some event such as the tenant's death. If it doesn't specify either, it's a month-to-month tenancy by law, terminable by a 30-day written notice, even if the form itself is called a "lease".
Often times unrepresented property owners will download a generic lease agreement from a generic website and believe they're covered. This is so far from reality.
The leases that can be downloaded from the internet or purchased at the office supply store are great for starters. A Landlord should use these as a template and customize it. Questions a landlord should ask themselves when customizing their lease agreement:
- Will the tenant be required to maintain the yard?
- Will you allow the tenant to paint the interior walls?
- If the tenant does paint, will you require them to return it to the original colors prior to them moving out the unit?
- Will you allow the premises to be used for a home business?
- Does the lease allow the tenant to sub-let the premises or to assign the tenancy to somebody else?
- Can the tenant have overnight guest?
- If they has overnight guest, how many consecutive days is the guest allowed to stay before they must be added to the lease?
- Who is responsible for the utilities? (electric, water, trash, gas, gardner)
- If the Landlord is paying for any of the utilities is there a cap on the amount you will pay? For example: Landlord will pay for water up to $100 monthly.
- What are the landlord's responsibilities regarding repairs and routine maintenance?
Insist you and the tenant walk trough the premises after you have agreed to rent to the tenant so that you both see what condition its in and what repairs may be required. Make a list of any questionable items, have the tenant sign it with the date.
Unyque Financial continues to be successful in placing long term tenants in our clients rental properties. Are you experiencing high turnover and high vacancies, we can do a property analysis and give you free tips to decrease your vacancies and increase your bottom line. Seeking tenant placement, looking for a rental property or full property management services call us today. Happy Renting...
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