A written rental agreement is a legal contract. While many may
wish that there was no need for such a document, it has become standard
procedure. There are certain details and delicacies involved in
creating your lease that will ease relations between you and your
renters and simplify legal proceedings if problems arise.
While there are so-called “standard” leases available, no lease is
perfect for your needs until personalized. While you may want to
use one of these model leases as a starting point, you will want to
write your own lease based on your own needs.
While a long lease filled with fine print may seem practical, it is not
friendly. By offering your tenant a many-paged lease filled with
legal jargon you may be starting your relationship off on the wrong
foot. Your tenants may feel threatened by such a lease and take
it to their own lawyers for review.
Be careful not to let your lease stand in the way of a careful
selection of tenants. Leases are only useful in the worst-case
scenarios. And even while a lease may dictate numerous rules for
the tenant, doesn’t mean that a potentially unruly tenant will suddenly
walk in lock step. No lease is airtight. Contract or no,
people end up doing what they want. Therefore, it is important to
understand that while the lease has its value, it cannot take the place
of careful tenant selection and person-to-person interviews.
Be sure to acknowledge your own duties as a property owner in your
lease. Make a point of balancing tenants’ rights with their
responsibilities. This way, you will make your lease fairer, and
you trustworthier. Be clear with your tenants about your own
responsibilities to them, not just their responsibilities to you.
Asking your tenants to help in the drafting of the lease will help them
feel more committed to the agreements. They will also be clearer
on the meaning of the lease and their roll as tenants. This may
also foster a good relationship with your tenants, which will help you
down the line.
Be flexible. You may find that you are willing to bend your rules
for the right tenant, and they may have something to offer that you
want or need. For instance, your cleanest and most responsible
tenants may own a cat. Then, of course, they may also be
willing to pay extra rent. Be open to negotiation and discussion
with your tenants, it may benefit all parties. In the end,
however, make sure that everything you agree to is written up in the
lease.
Study a wide range of leases before writing your own. You will
find creative ways in which other property owners have worked with
their tenants that may inspire you. Write a lease with your ideal
tenant in mind: what type of property do they want to live in?
The right lease with the right options will attract the right tenants.
Be sure to draw attention to those aspects of your lease that make your
property desirable. Do not let your tenants get scared away by
legalese. Ask them to think about adding details to the lease and
make sure they do not have any problem with agreeing to your terms.
Most leases require the names of all tenants, even children, to be
clearly listed. This is an important aspect of any lease as it
prevents un-wanted houseguests and illegal sub-letting. Clarify
to your tenants how many people can live on the property and the
procedure for adding or removing people from the lease.
Joint liability and several liability are terms that mean your tenants
are a unit, even if they consist of more than one individual. You
do not care from which one you receive your payments, as long as you
receive them. If one tenant breaks the lease, rent is still due
in full from whichever tenant still occupies the property.
Consider carefully the length of term of your lease before settling on
one. While a one-year lease is standard, it may not be the best
option. Seasonal leases can often bring in more money, while an
even longer lease may provide you with more stability. You may
want to pick a lease-length that caters to the local population.
You may also want to include in your lease a description of the
property being leased. You should be clear as to which parts of
the property the tenants have access to and which they do not. A
clear description of your property will ease problems in the future.
Consider lowering your rent if you are having trouble with your
tenants. A low rent will reduce tenant complaints overall and
give you a broader range of tenants to choose from. While any
financially savvy landlord will seek to profit, you may find that
lowering rent will save you time and money in the long run, making the
costs correspond soundly benefits.
Writing a clear, reasonable and friendly lease is one of the most
important aspects of your property management. Maintaining a good
relationship with good tenants hinges on a well-written and
well-thought out lease. The time and energy put into your lease
will help you avoid major hassles further down the road.
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