The lease – Landlord protection starts here – What are the most important clauses?
The signing of the lease: This agreement is the basis of the relationship between the landlord and the tenant. It will define the rules and regulations with which both parties will live. You should also describe any sanctions or results of actions that damage or break the agreement. It is absolutely necessary for each tenant to sign a lease. It is good practice to spend an hour with each new tenant and each go through the lease and have all parties initial each paragraph.
Who’s in Charge: This is meant to give each tenant a chance to learn the rules and penalties and to clear up any misunderstandings up front. It will protect you in the future if there is a basic misunderstanding regarding anyone’s obligations. It will also give you the opportunity to establish the relationship on your terms and solidify the idea that this is a business relationship that will be governed by rules.
All rental agreements must have the following:
1. Name and address of the property
2. Name and address of all tenants
3. Name and address of the landlord.
4. The rent
5. The expiration date and address or delivery system if it is an EFT
6. All late payment penalties
7. Responsibilities of the tenant for the maintenance of the property
8. Responsibilities of the landlord in the maintenance of the property
KEY CLAUSES
1. Lease Termination Date – Without a date, you may not have an easy termination of a relationship you would like to end. You may have a hard time raising rents, because the end of the relationship is unclear. Give yourself the opportunity to redefine or end a lease.
2. Subtenants or Roommates: If you allow new roommates or a sublease, you must insist that the new people be subject to your approval. They must complete a rental application and go through the normal tenant screening process with you as the owner or manager with final approval.
3. Visitors: Have the lease state the date all visitors must leave. If you do not meet a roommate or a tenant who has escaped from your right to evaluate and approve. Let the tenant know that after a reasonable period of time, such as two weeks or even thirty days, the visitor must leave. Please note that certain family members may be exempt from your control, such as new spouses or children, etc. If you find yourself in this situation, you must send a certified letter stating that the tenant may be breaking the lease and that it is cause for termination. Stay in charge.
4. Repairs: Inform the tenant that their responsibility is open to notify them IMMEDIATELY if there is a leak, moldy areas, pests, unsafe conditions of any kind, broken windows or locks, missing or broken smoke detectors. It should be understood that your responsibilities regarding the safety and habitability and maintenance of the common areas depend on the tenant notifying you in a timely manner.
5. Smokers: We believe that smoking should be prohibited in the building. Put a smoke detector in every bedroom and in the kitchen. Have the lease state that the tenant is responsible for replacing batteries in smoke detectors. You should also do an annual inspection to see if they work, after all, it’s your property.
6. Landscaping: Take photos of the landscape, especially if it was expensive. Keep dogs out of units that have access to gardens. Define the tenant’s responsibility for watering or mowing the landscape. Explain this in the lease. You may want to bring in a professional gardener to maintain the delicate gardens. Our feeling is to create an indigenous landscape, which is not expensive in terms of water or maintenance.
7. Pets: If pets are allowed, define the type, size by weight and number of animals allowed on the property. Be clear that any new pet needs your permission or this may be grounds for termination.
8. Storage: Have a separate storage lease that has an end date, to keep control in your hands as the owner or manager. Make sure the lease states that toxic materials cannot be stored and if there are spills, they are the responsibility of the tenant. Take pictures before the move
9. Parking: Have a separate parking lease with an end date and a theft or damage waiver, unless you are charging for a secured garage.
Define all toxic materials and make sure the lease allows for termination if found there. Define the type and number of cars that can park there, and make sure the lease requires cleanup of all gas and oil spills. Take photos before renting. Please note that you must provide some security. Offers bright lighting and secure locks. Don’t find yourself in the middle of a lawsuit because the place was dark and something horrible happened.
Howard Bell for yourpropertypath.com
