Having a lease is crucial if you’re a landlord—it outlines the terms of your agreement and protects both you and the tenant during your arrangement.
Your lease needs to be state specific; otherwise, it may not be enforceable in a court of law. In addition to outlining your responsibilities as well as those of the tenants, a good lease will also include “at fault” language. This helps you, being the landlord, to recover potential losses.
What exactly should you consider including in your lease? We’ve compiled a list of some essential elements you might have overlooked when it comes to this important document.
What Should Be Included?
Of course, your lease will include elements such as how much the rent is, when it’s due, the move-in date, and the date the lease expires, as well as other key pieces of information.
The following are items you may also consider including to further protect your investment. This is to ensure your tenant has received full disclosure about your property and has acknowledged their rights and responsibilities during their stay.
These aspects include:
1. Proof of Renter’s Insurance. You should receive this proof prior to the tenant’s move-in date.
2. Mold Notification. This helps your renters know how to prevent indoor mold as well as the risks of living with indoor mold. If mold exists in your rental unit, you must notify the tenants and take steps to remove it. If tenants notice mold, they have a responsibility to notify the landlord.
3. Mold Inspection. In this section, detail who is responsible for a mold inspection and at what points it is warranted.
4. Walk-Through Disclosure. When the tenant moves out, they are entitled to a walk-through of the unit with the landlord.
5. Water Valve Locations. Where the water valves are, how and when they would need to be accessed.
6. Air Filter Reminder and Size Specifications. If your tenant is responsible for changing the air filters, this should be in the lease along with the size specifications and at what points the air filters need to be changed.
7. Gutter Cleaning Requirements. Who is responsible for cleaning the gutters, how it should be conducted, and when.
8. Keeping Drains Clear and Free of Debris. This is especially important in below-grade drains, such as in stairwells.
9. Front Load Washer Instructions. This will help to reduce mildew in the gasket and should include instructions for clearing the trap.
10. Lead Based Paint Disclosure. If your structure was built prior to 1978, there’s a chance the property could contain lead paint and your tenants should be made aware of this.
11. Lead Based Paint Booklet. Again, this should be provided to the tenants if your structure was built before 1978.
12. Move-Out Instructions. This section should fully inform your tenants of how they are to leave the property when move-out time arrives.
13. Digital Walk-Through with Pictures. This is crucial for if and when an issue arises.
14. Contact Procedures for Repairs and Emergencies. This should detail who should be contacted and under what circumstances should a repair be needed or an emergency should happen.
It’s a good idea to have your tenant sign that they received the above elements. This ensures they’ve received full disclosure about your property and that they understand their responsibilities in addition to other terms of their lease.
Crafting a Solid Lease
As a landlord, refining your process for finding tenants, creating a lease, and conducting turnovers is a natural part of developing your experience and skill.
At Circle Property Management, we’ve had many years in business refining our practices using software and management systems. We find these practices to be effective in maintaining good relationships with landlords, tenants, and vendors alike.
If you need help making your lease or are considering having a local property management company handle this and other legalities of being a landlord for you, get in touch to discover how easy having an investment property can be!
About The Author
Eric Guggenheimer - SFR, ARM ® » Principal Broker, Certified Property Manager, IREM, ARM, NARPM, NVAR, NAR, VAR
