June 4 ,2020
Your lease is the key to your entire business.
It is was allows you to rent your home and generate income as a Landlord!
So, to keep your business as successful as possible, here are 5 lease related tips for Landlords.
1. Have a Written Lease
Having a written rental agreement is the best way to communicate your expectations and protect yourself in legal situations.
While oral agreement are legal in some instances (usually for agreements that are less than 12 months), they’re less effective than a written document signed by both parties.
Without a written document, it may be difficult to prove what was agreed upon prior to tenant move-in. All of your rules and clauses must adhere to state specific laws.
2. Know your lease – review it regularly
A useful rental agreement is specific.
You should thoroughly think through what rules you want to include:
- Are pets allowed?
- Will there be a late rent fee?
- What is the specific security deposit amount and how does the tenant receive it back in full?
- Do you want a noise restriction rule?
Make sure your rental agreement is customized for you.
- Should tenants expect a 24-hour maximum wait time when there’s a pressing issue?
- Will you be available during the entire day, or only from nine to five pm?
Make sure these answers are clear and concise, and ensure your timeline follows local, state, and federal laws.
Having a rental agreement that is specific to your rules and expectations can help to make communication with your tenant easier.
If everything is mapped out in the rental agreement, there is likely to be less confusion down the road.
3.Read your lease out loud with the tenant
The best tool for training your tenants is your lease agreement.
At the lease signing, you should print two copies of your lease.
One for your records and one for the tenants to keep.
You should read your lease out loud, word for word, to the tenants and be sure to explain any confusing or complicated language.
Your lease is the document that lays out all the rules and policies for how you run your business and how you expect your rental home to be treated.
This is the best time to ensure everyone completely understands all the rules…most importantly YOU…the landlord.
4. All adults must be on the lease
As we have discussed before, you need to know who is living in your rental property.
Anyone over the age of 18 who will be living in the home must sign the lease.
This is the best way to protect yourself as a landlord.
By signing the lease, each individual is accepting financial responsibility for the rent and the property.
It helps to make sure all adults are aware of the rules, and the repercussions if the lease is violated in any way.
5. Read your State Landlord Tenant Act
If you have never looked up and read your State Landlord Tenant Act…that should be the first thing you do when you finish watching this tip!
For RentSmart users, this can be found in the Resources section of your landlord portal.
This document specifies exactly what your state deems the relationship between landlords and tenants to be, who is responsible for what…and what the repercussions are if your lease is not followed.
Each state is different and has different laws and rules.
Be sure to review your specific state Landlord Tenant Act.