Creating a comprehensive and effective lease agreement is critical to protect investment properties and income throughout the term. While property owners often use boilerplate lease agreements, the language and conditions can be open to interpretation without the essential customization that each rental property needs.
Since the lease agreement is such an important document, each one needs to include some fundamental terms. One of the best Quincy property management companies can assist property owners with creating the perfect lease agreement. Ready to get started on your own? Let's take a look at what property managers want every property owner to know about a residential lease agreement.
A residential lease agreement is a contract between the tenant and the landlord. This legally binding document specifies the rights and responsibilities of both parties through the duration of the tenancy. The agreement also outlines what each party is expected to do or provide, as well as any penalties for breaking those terms.
The lease agreement is crucial not only for rental property investors but also for renters. There are different types of agreements that can be used to fit your needs, so property owners should decide what their priorities are before drafting the document to ensure it contains everything they need for success!
While most rental agreements include similar terms, every lease should be different. The specifics that go into each agreement depend on the property, the tenant, and the priorities of the property owner. If you're using a free lease agreement template, take time to protect your properties by customizing the document with specific terms.
Let's look at some of the terms that should be included in every lease.
The lease should include everyone who will be staying in the rental unit. This consists of children under 18, even though they will not be responsible for paying the rent.
Make sure you include the property address and a description of the unit. The terms of your lease or rental agreement may also cover furniture, a parking space, storage places, or other amenities supplied by the owner.
The specifics will include the length of the lease agreement. For example, if it's a month-to-month lease, property owners should note that in this section. However, if you offer a fixed-term agreement, include the start and end dates of the tenancy.
A strong lease should also include the amount of monthly rent, when it's due, if they can pay online or by check, and any late fees that apply if the rent is not paid on time. Also, the lease should include details about any other fees like a security deposit.
A rental lease agreement must include the responsibilities required of renters and the property owner. This is where investors inform residents that they will be responsible for keeping the rental clean and in good condition. Also, this section of the lease lets renters know what the property owner takes care of, including maintenance and repairs.
If necessary, agreements can be more detailed and list specific tenant responsibilities, such as taking out the trash and watering the lawn. Leases also contain restrictions on what tenants may not do regarding repairs, such as painting walls or adding built-in bookshelves without the landlord's permission.
Every property owner should include a clause in the lease agreement restricting the maximum number of people living in the rental property. These terms should follow local ordinances about the number of people allowed in homes of specific sizes. In addition, be clear about how long guests can stay in the rental unit before they need to be on the lease or find another place to stay.
If you decide to allow pets in the rental property (and there are some benefits), make sure to include any information about the animals you'll allow, including size and breed restrictions. A thorough pet clause also mentions the resident's responsibilities regarding their pets and if you require a pet security deposit or monthly pet fees.
It can be challenging for landlords to create a rental lease agreement without the right insights! Lease agreements need to be written in a specific way so that they are legally binding when it's time to enforce the rules. Working with a legal expert and a Quincy property management company can be the help you need to draft leases that protect your investments and help maximize returns.
CHARLESGATE Property Management has years of experience helping Boston area rental property owners create and enforce strong leases! Reach out to our team to learn how our property management services include leasing help.
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