Uncategorized Archives - Page 11 of 11 - Home Choice Property Management

Lease agreements are the backbone to building a sound, professional relationship with your tenants. Create a bad one, and you’ll find yourself continually resolving disagreements. On the opposite end, by crafting one that’s clear, comprehensive and transparent, conflicts will likely be minimal.

If your leasing agreement leaves more questions than answers, then a tenant can find loopholes. It would be unfair to subject a tenant to strict prohibition when you don’t clearly state a condition in your agreement.

For example, a tenant brings in a pet in a rental property, and you disallow it. Upon checking the lease, there’s no pet policy mentioned. This leads to more discussions with the renter.

As a landlord who wants to be more thorough, learn to focus on details. Set out to include important clauses. Avoid leaving things open-ended and subject to misinterpretation. You can’t fault a tenant for committing actions that have not been tackled in the lease agreement.

Consider this as a guide to creating a useful lease agreement that will serve you and your renters. Below are items that can further solidify your contract:

Clauses

These are provisions in your lease agreement that a tenant can use as a reference when certain situations come up.

Tenant possessions

It’s expected that tenants move out. They may do so when their tenancy expires, or they’re forced to vacate, resulting from an eviction. In some cases, possessions may get left behind.

Different states have their own guidelines on what to do with abandoned belongings. It’s best to review this before disposing or selling the former renter’s items.

Pet policy

With the rising popularity of pet ownership, landlords must decide on a pet policy. If you choose the pet-friendly rental route, do specify the size and breed of the pet permitted.

include a pet policy as a clause in the lease

Conditions must be set, especially if you’re renting out an apartment complex where several common areas exist. If you do decide to be closed off to accepting pets, you must clearly state a non-pet clause. You want to discourage your renters from sneaking in a pet or two.

Subletting

Subletting or subleasing refers to a tenant allowing another renter to share the rental unit. This can be a way to share the expenses of renting. Either the new tenant pays the entire rent or a portion of it to the original tenant.

If you decide to allow your original tenant to sublet the unit, you can require written permission beforehand. You must also conduct tenant screening to ensure your property remains damage-free.

Occupancy limits

This is related to subletting. Your lease agreement must specify the maximum number of occupants allowed to stay in your property. This is where you can emphasize that additional roommates or housemates require permission.

Check your local laws first since the limits can vary per city or state. Restricting the number of occupants means preventing overcrowding and hastening the possibility of wear and tear in your rental space.

Security deposit

Since landlords normally collect a month’s worth (or twice that) from a renter as a security deposit, this is a crucial clause. It’s a tenant’s right to know where and how you store the security deposit.

include all information about the security deposit required in the lease

You need to inform the tenant if it’s in an interest-bearing account and the rate of interest. A renter should also be privy to the information about the types of deductions that can affect the security deposit. Further, the procedure for the refund should be part of the clause.

Late payments

When late payments occur, a landlord must provide conditions on how a tenant can best proceed. This is where rules about late payment charges, the fee structure and the grace period will be mentioned. With this clause, you can ensure that a tenant will be guided towards the right action to follow. Without this, a disagreement can occur, and an absence of consequences will be a breeding ground for a renter to pay beyond the due date.

Breaking of lease

As much as landlords want to have absolute control over a tenancy, this is impossible. Situations may surface when a tenant has left the property without notice. A tenant may also want to move for a variety of reasons.

Providing a clause when it comes to a tenancy breach help clarify the repercussions. For example, if domestic violence occurs, or a tenant is called to military duty, they can be exempted from being subjected to penalties.

Termination of lease

Another important clause that must be part of the rental agreement is the termination clause. This is where you can outline behaviors that will result in an eviction.

the lease should detail the behaviors that would result in eviction

Usually, landlords evict tenants on the grounds of property damage violation and non-payment of the rent. The landlord can expand the list by providing more detailed conditions. Discussing the procedure for vacating, such as sending a notice, is also part of this clause.

Basic Terms

These are items that typically comprise a rental agreement:

Names

The landlord or agent’s complete name and the tenant’s name will be stated. Additionally, mention the property name as well.

Address

The landlord or agent’s full address, as well as the tenant’s address, will be stated. Moreover, mention the property’s complete address, from the unit number to the zip code.

Rent amount

State the full rent amount per month, with figures for clarity. Other fees such as security deposit and pet charges will be separately mentioned.

Rent due date

To encourage tenants to pay on time, a specific date must be stated. This should be the exact day, month and year.

Rental period

Exact dates for the rental period, from the start and end date, must be written down.

Signature

The leasing agreement will be legally binding through the signatures of the parties to the contract. The landlord and tenant will affix a signature with the date to signify their mutual agreement to the terms contained in the document.

Bottom Line

Building a solid lease agreement will protect both the landlord and the tenant. It will also cultivate a stronger relationship, create boundaries and define what is acceptable behavior.

The private rental sector is praised as being one of the largest industries around the globe. As more people move into rental residences, these kinds of housing solutions become more likely to host long-term stays. A long-term tenancy is a win-win for both the landlord and tenants.

Tenants are on the lookout for a place they can call home, and landlords experience more benefits from renting to tenants who remain loyal to the property. This results in fewer tenant turnovers and a more consistent stream of income from the rent.

There are several techniques and tips that you, as a landlord, can incorporate to attract long-term tenants. Although one can never accurately predict how long a tenant will stay, certain factors maximize the chances of tenants extending their leases.

A Blank Canvas

Give your tenants a free hand and let them decorate the place according to their own taste. People who are looking for long-term deals will want to change the property into their home. To ensure that they get that cozy feeling of home, turn the rental into their blank canvas.

When landlords give tenants the freedom to decorate, there is a greater chance they will renew their lease. Make them feel like they are living in their own home instead of someone else’s. In turn, they will want to reside for longer.

Pay Attention to the Kitchen

Most individuals are very particular about the kitchen. Its appearance and practicality are considered as the primary factors when tenants are picking a place to move into. Therefore, make sure that your kitchen is up-to-date with the proper appliances.

Tenants are more likely to choose to live in a property that already has a dishwasher installed. Pre-installed laundry machines, as well as a refrigerator, are a bonus. If you can add even one of these appliances, you will make your house look like a more tempting, suitable choice.

Additionally, a kitchen renovation will also motivate your tenants to renew their contracts. For example, you could replace old kitchen tiles with modern ones. This improvement will instantly accentuate the entire presentation of the kitchen.

Robust Security Measures

A secure house is definitely more attractive, as safety is a crucial determining factor. No one would ever prefer to move into an unsafe property. Security is every tenant’s number one priority.

To make your property more secure, you must incorporate safety precautions. The property must have a proper fence, door locks and even security cameras. By ensuring that the surroundings of the rental are monitored 24/7, you are more likely to get long-term tenants, as such features of a home are greatly valued.

Don’t Overpromise

Always promise your tenants what you can actually deliver. For example, most landlords initially agree to take care of all renovations. However, after securing tenants, they take a U-turn on their agreement. This leaves a negative impact on tenants who may not want to stay under a landlord who does not keep promises.

The same goes for tenants, for example, if they decide not to pay the rent on the date agreed, leaving you agitated. If you under-deliver, don’t expect your clients to stick around for long.

Excellent Tenant Support

Just like customer support is an integral part of every business, extending support services to tenants is crucial as well. If you want long-term tenants, always ensure that you address their concerns promptly.

This will help you foster a trustworthy relationship with your tenants, which in turn can maximize the chances of tenants staying for longer. You can discuss timelines for urgent requests while signing the lease, so both you and your tenants are on the same page.

Professional Cleaning

Make sure that your property is clean and tidy. Professional cleaners can be hired once or twice a year to leave the house squeaky clean. Not only will this get rid of any infestations, but it will also give your property a fresh look. Tenants are more likely to stay in a house whose owner is concerned about its cleanliness as much as they are.

Privacy

No one likes people poking into their personal affairs for no reason. While you own the property, you must distance yourself once your tenants move in. Most landlords fail to understand this.

Showing up unannounced at the property, for example, might be intrusive to tenants. Therefore, schedule every visit, if you can. The rental unit is their personal space. If you need to inspect the property, properly schedule an appointment.

Just like you wouldn’t appreciate unannounced visits, your tenants won’t either. Hence, if you want long-term tenants, avoid invading their privacy.

Laundry

The more comfort you offer in your rental, the greater are the chances of your tenants sticking for longer. Add in-unit washing and drying machines so that tenants don’t have to worry about their laundry.

Have the system installed beforehand so that no problems occur later on. Although it may be an extra expense, it will definitely reap long-term benefits.

The Right Price

Most individuals avoid renting overly expensive places. Always conduct a market survey first to make sure that the rent you’re charging is not too high or too low. With the rental sector gaining momentum, it’s not difficult to find a rental property these days. Therefore, to ensure that you don’t lose prospective clients to others, offer a reasonable price to your tenants.

Bottom Line

As a landlord, you can implement certain measures to make sure that your tenants stay long-term. This can only happen if you effectively listen and address your tenants’ concerns. By understanding their needs and requirements, you can develop trustworthy relationships with them. In turn, this increases the chances of tenants renewing their lease agreements.

You must provide a safe, clean, comfortable and homely rental unit that your tenants will cherish. A tenant who can call the rental their home is more likely to stay, after all.

Guide to Making a Solid Lease Agreement for Your Rental Property