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Landlord Know Your Lease

By
Real Estate Broker/Owner with Unyque Financial

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...

Comments(5)

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Lorinda Ward
Keffer Realty - Norfolk, VA
Serving, Hampton Roads Virginia. Norfolk, Chesapeake, Va Beach

Great post, if the landlords pay attention to the items listed in your post, it will keep them out of trouble.

Mar 14, 2011 05:20 PM
Cheryl Malone
Windermere Van Vleet - Medford, OR

I agree... landlords need to be very specific.  When you end up in court, the judge usually sides with the tenant otherwise.

Mar 14, 2011 05:44 PM
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Yes

NEVER

No

What business?

NO * not without my permission

Yes

10 consecutive days

Tenant pays utilities * one of the JOYS of renting a single family home

No

All repair requests come via e-mail with the property address in the Subject line of the e-mail and tenant contact information IN the e-mail.....I then forward to my service personnel and e-mail the resident who I have asked to call them and make an appointment to check their request

GREAT QUIZ!  Great series for this time of year!!!

 

Mar 14, 2011 11:08 PM
Gary J. Muccio, Associate Broker
Keller Williams of Central PA - Camp Hill, PA
Exceptional Customer Service!

Luna - great post with great reminders. Another clause I write into all of my leases is - The tenant must have a renter's policy in place (with me listed as an additional insured) as of the start date of the lease. I specify they have a minimal amount ($50K) for content and ($300K) for liability. As with most states, PA's landlord tenant law favors the tenant, so the lease is crucial. Continue success to you!

Mar 15, 2011 02:59 AM
Luna Petty
Unyque Financial - Pasadena, CA

Thanks Lorinda and Cheryl if we can't avoid court we want to be prepared for it.  I like your answers Wallace, you're on your game.  Yes Gary insurance is another good point to make.  I smell another blog topic...

Mar 15, 2011 05:46 PM