Does your lease agreement include everything it needs to protect your properties? A lease agreement is a legal document that both the owner and renter must sign so that both parties know what is expected during the lease term. However, investors must include critical clauses in rental agreements to protect themselves from any disputes or litigation down the road.
A Milton property management company can help area rental property owners find success by drafting a lease that includes essential clauses. Here are ten things you should put in your residential lease agreement!
When drafting a rental agreement, property owners should list the names of everyone that will be living in the property. This includes all adults and children under 18 years old, even if they will not be responsible for paying the rent.
Be sure to include the monthly rent rate and the date it's due. This makes it clear for tenants and removes room for misunderstandings about due dates or amounts. Additionally, landlords should specify how the rent should be paid (e.g., by check, cash, or through an online payment system).
In addition to the monthly rental payment, it's a good idea to include a section in your rental agreement that discloses any fees that applies to the rental property. This can consist of the security deposit amount, what it might be used for, and how it will be returned at the end of the lease.
Property owners should also use this section to mention late fees for past-due rent or other fees for lease violations. If you require a pet deposit or monthly pet fees for owners with pets, include that here, too.
Property owners need to include the length of the lease term, so the start and end dates are clear. This section will also include what happens when the lease ends. For example, if the lease converts to a month-to-month lease agreement at the end of the term, note that in the document.
The lease agreement should include a clause describing when it is reasonable for the owner or property manager to enter the property and the notice that tenants should receive before entry.
A reasonable notice varies depending on the situation. However, property investors should generally give at least 24 hours notice before entering the property. Landlords should also make a reasonable effort to schedule entries during regular business hours unless there is an emergency.
Lease agreements should include specific instructions about how tenants should report maintenance issues or needed repair work. This encourages residents to report problems right away through an online portal or other designated method. This section could also list any scheduled maintenance that applies to the property during the tenancy.
Investors should list any occupancy limits in their rental agreement. A property owner may want to limit the number of people living in a residential property because of concerns about noise levels or safety hazards that could affect other tenants.
You should also limit the number of people who can live in your property to comply with local zoning ordinances that restrict occupancy for rental properties. If you're not sure about the regulations that apply to your property, check with a property management company!
Be sure to include any restrictions that are in place because of state or local regulations or your preferences for the property. These restrictions could include:
In the absence of clear information and terms, renters can behave in ways that cause property damage or allow unsafe people to live in your property.
In addition to the rules, property owners must include the consequences of violating terms in the lease agreement. This helps ensure that both the landlord and the tenant know what will happen if either party breaches the contract. Having this information in writing can help to prevent any misunderstandings or disagreements later.
In addition to some of the basic clauses listed above, many owners have additional policies to implement in their residential lease agreement. Some may limit smoking inside the premises or place quiet hours into effect. Tenants should understand these conditions before signing a lease agreement to know what is allowed and not allowed on the premises.
A well-written rental or lease agreement can protect property owners from costly litigation by laying out the rules and consequences in one place. Finding the right property managers to assist you with your lease agreement can help streamline this process and ensure that it is done correctly from start to finish.
CHARLESGATE Property Management helps Milton property owners create and implement rental agreements! Reach out to learn more about our property management services.
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