Lease

Rent Collection On Holidays: Landlords Should Plan Ahead

Posted on by RG

Rent collection on holidays can be troublesome for many landlords, as they face many challenges in collecting them on time. Since these days are usually the busiest in the year, it may impact the priorities of both landlords and tenants, causing delays in handling holiday rent.

 

Common Holiday Rent Collection Challenges

Collecting rent during the holidays can present several challenges and inconveniences. Here are some of them:

 

Bank Closures

Since it is the holidays, the banks are also more likely closed. Even if tenants try to initiate their rent payments, the bank cannot process them until the next business day. This delay may disrupt cash flow for rental owners and landlords who rely on timely rent payments.

 

Delayed Automated Transfers

For landlords who use automated payment systems and bank transfers, the holidays may cause a delay as these may also not be processed on non-business days. Similar to bank holiday closures, this will inconvenience landlords and rental owners who rely on receiving payments promptly.

 

Tenant Availability during HolidaysTenant Availability

When the holidays roll in, people, including tenants, get busy. Many may travel and visit family, others become busy with holiday shopping, while others may focus on hosting parties and family gatherings.

When this happens, paying their rent during the holidays may slip lower on the tenant’s list of priorities.

 

Landlord Availability

Of course, landlords are humans, too, and may choose to prioritize holiday activities and become busy with holiday plans. If this happens, they may overlook tracking rental payments or communicating with tenants. This can complicate and make dealing with delayed payments more challenging.

 

What Can Landlords Do?

Luckily, landlords can prepare to mitigate holiday-related collection issues. They may do so by practicing proactive strategies that anticipate those challenges.

 

Adjusting Due Dates

When the holidays are approaching, landlords can consider adjusting the due days for rent to avoid conflicts with bank closures. For example, suppose landlords usually have rent due on the first of the month. In that case, they can adjust it a few days before or after to accommodate possible holiday delays without negatively affecting cash flow.

 

collecting rent before the holidaysSending Out Early Reminders

Communication is always crucial, and landlords may send out early reminders to tenants. This is a common and practical way to minimize late or reduced payments. They can notify or remind tenants by email or text a week before the due date, especially when the said date falls during a holiday. This can prompt tenants to make the necessary arrangements ahead of time.

 

Grace Periods and Late Fee Waivers

Rental owners and landlords may choose to offer grace periods during the holidays. Some decide to waive any late fees tenants may incur during the holidays. By doing this, landlords can build positive tenant relationships by acknowledging that the holidays can be hectic and that circumstances may interfere with timely payments.

 

Using Technology

Technology can simplify rent collection during the holidays, making it easier for landlords and tenants. Using technology and automated payment systems, tenants may create scheduled rental payments, which may avoid delays brought about by holiday bank system closures.

Some of the technology that can be used for rent payments on holiday weekends may include:

  • Payment Apps: These platforms can help simplify and streamline the payment process. They ensure quick, reliable, and secure payments. Some applications offer scheduling features tenants can set up and authorize in advance.
  • Payment Tracking Systems: For landlords, payment tracking solutions can allow them to monitor payments automatically. These tracking systems may also have other features, such as setting and sending out reminders and tracking possible missed and late fees. These solutions are a dependable way to stay on top of rent collections even when you’re focused on holiday festivities.

 

Legal Considerations for Holiday Rent

When collecting rent before the holidays, landlords should take note and consider some regulations connected to holiday rent collection to prevent possible issues.

 

Local Laws

Some states may have specific regulations that involve many aspects of rent collection, including due dates, late fees, and grace periods. They may vary from state to state. For example, in North Carolina, local legislation indicates that there should be a 5-day grace period for payment after the due date.

Taking note of this legislation can help rent collection go smoothly, even during holidays.

 

Lease ClausesLease Clauses

To make things easier for landlords and tenants in the long run, landlords may include stipulations about holiday rent payments in lease agreements. It defines set procedures for handling rent collections on holidays, and it can avoid miscommunication with tenants.

The said clause can indicate whether payments should be made before or after the holiday. It may also indicate stipulations about grace periods, late fees, and possible late fee waivers.

 

Frequently Asked Questions

What Happens if Rent is Delayed Due to the Holidays?

A landlord’s course of action will depend on your lease agreement and local regulations. Landlords may offer grace periods or consider waiving late fees during the busiest time of the year, as long as this has been communicated in advance.

 

Can Landlords Require Rent Payments to be Made in Advance of a Holiday?

Yes, landlords may request early payments to avoid holiday-related delays. However, they need to properly remind and notify tenants about this in advance. Defining the course of action for holiday rent may be best to make things easier when creating your lease agreements.

 

How can Landlords Avoid Disputes Related to Holiday Rent Collection?

Communication is key. Landlords clearly outline their expectations about rent payment, including in special circumstances like holidays. Additionally, they should stay on top of informing and notifying tenants of any changes in payment schedules.

Keeping communication lines open and addressing tenant concerns greatly helps avoid misunderstandings between landlord and tenant.

 

Staying on Top of Holiday Rent

With all the festivities keeping everyone busy, it is still possible to attain smooth and seamless rent collection on holidays. With proactive planning, clear communication with tenants, flexibility, and the convenience of technology, landlords can mitigate any disruptions to timely rent collection.

You may benefit from a property management company if you plan to stay on top of holiday rent collections. They can provide tailored solutions for managing your rental property, including rent collections. Find one today through our online directory!

 

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Everything You Need To Know About Lease Renewals

Posted on by Denise

A lease renewal is a common part of renting. It offers tenants and landlords a chance to continue the tenancy. If a tenant’s lease term will end soon, it’s important to know how the lease renewal process works. In doing so, you can avoid confusion and misunderstandings.

 

What is a Lease Renewal?

A lease renewal is an agreement between the tenant and the landlord to renew the lease. It is essentially a new lease for the same property. A lease renewal extends the tenant’s stay but differs from a lease extension.

A lease renewal typically extends the lease for a fixed period. The renewal can have the same terms, or either party can choose to suggest revisions. Generally, a lease renewal occurs at the end of the original agreement, which lets both parties negotiate the terms and conditions if desired.

Upon lease renewal, tenants and landlords get a chance to make adjustments. Common adjustments include rent increases, payment schedule changes, and amendments to the rules. Before signing a new lease, ensure you are satisfied with the new terms. If neither you nor the other party agrees to the renewal or the terms, the extension can’t be pushed through.

 

Lease Renewal vs. Lease Extension

Many people confuse a lease renewal with a lease extension. While they share some similarities, they do have stark differences.

  • Lease Renewal. A lease renewal is essentially a new contract. It may contain new terms or be the same as the previous agreement. With this, the original lease expires, and both parties enter a new one.
  • Lease Extension. A lease extension, on the other hand, extends the existing lease. It doesn’t create a new contract. In this case, the terms and conditions of the original lease remain the same, including the rent and duration. Landlords and tenants typically prefer this option to keep things simple.

A lease renewal and a lease extension both extend the lease period. However, a lease renewal may contain new or amended terms, whereas a lease extension includes the same terms. A lease renewal involves signing a new contract, whereas a lease extension is usually an amendment added to the original lease.

Most landlords prefer a lease renewal with a rent increase to keep up with economic conditions. It is fairly common for renewals to include a rent increase, particularly in high-demand areas.

Tenants, though, may also negotiate a lease renewal with a discount if they want more favorable terms. Landlords should consider agreeing to the request for a discount if the tenant has been good, following all the rules, and paying rent on time.

 

What is the Lease Renewal Notice Period?

The lease renewal notice period is when a landlord must inform the tenant of their intent to renew or not renew the lease. Typically, the landlord provides this notice 30 to 60 days before the expiration of the lease. However, state and local laws may influence this. The terms of the original lease might also speak to the notice period.

For instance, in New York, landlords can incorporate an automatic renewal clause in the rental agreement. In this case, landlords must provide the tenant with advanced notice of the clause’s existence, between 15 and 30 days before the tenant informs the landlord of their intent not to renew.

Tenants must give notice if they wish to renew their lease. Landlords should typically ask for this notice in advance, typically by providing a deadline for tenants to inform them in writing. This is to avoid confusion and prevent the landlord from returning the property to the market. Tenants who have decided to renew must make sure to follow the terms of the lease.

 

What to Do When Landlord Never Sent Lease Renewal

What to Do When Landlord Never Sent Lease RenewalLandlords may forget or fail to send a lease renewal notice. If the end of the lease is imminent and the tenant hasn’t heard from the landlord, it’s best not to assume that the tenant can stay. Tenants must take the initiative and contact their landlord to inquire about their intentions.

Some states have laws that require landlords to send lease renewal notices within a specific period. If the landlord doesn’t send one, it’s important to check the local tenant laws to see what actions can be taken. In the meantime, tenants can ask their landlord whether they plan to offer a renewal and if there will be any changes to the lease terms.

On the landlord’s part, it’s essential to set a reminder before the end of the lease. It’s possible to forget, especially when the landlord has multiple properties and tenants. To avoid violating landlord-tenant laws and keep tenants happy, landlords should strive to remember sending a lease renewal before the lease expires.

 

Do I Need Proof of Income to Renew Apartment Lease?

Landlords can have requirements for tenants when renewing apartment leases. Some ask for the tenant’s updated proof of income during the lease renewal process. This assures that the tenant will still be able to pay the rent. It’s a more common practice in areas where rents are rising. It’s also good practice if the landlord is considering a rent increase.

When tenants can no longer afford the rent, they must inform the landlord about the situation. Landlords have the option to still agree to renew the lease at a lower rent price. This usually happens if the tenant has a good history and relationship with their landlord. However, landlords may ask for additional security from their tenants, such as a co-signer.

 

How to Renew Rental Agreement

The process of renewing the rental agreement usually starts with the landlord sending the lease renewal to the tenant. This form outlines the terms of the renewal, including any changes in rent or other rules. Both landlords and tenants should carefully review the form to ensure that they agree with all the new conditions.

After reviewing the terms, tenants can sign the lease renewal form and return it to the landlord before the deadline. It’s good practice for landlords to provide their tenants with a copy of the signed renewal. This helps resolve any disputes that may arise later.

 

What Does a Lease Renewal Agreement Include?

A lease renewal contract includes key details about the new lease period. Here are the contents of a lease renewal agreement:

  • Property description
  • Lease duration
  • Rent amount
  • Payment schedule
  • Maintenance and repair obligations
  • Updates to rules and regulations (such as pet policies, parking rules, guests, utility costs, etc.)
  • Termination and renewal terms

Landlords should make sure that these details are in the contract before handing it over to their tenants. After both parties sign the contract, they agree to the new terms. As such, it may be difficult to make a change later on if there is something missing.

 

What Happens With a Non-Renewal of Lease?

lease renewal with rent increaseIf either the landlord or tenant decides not to renew the lease, the tenancy will come to an end at the expiration date. This is called a non-renewal of lease. The landlord is also typically required to provide the tenant with a written notice in advance. This notice period matches the lease renewal notice period, giving the tenant time to make other arrangements.

After the lease is not renewed, the landlord expects the tenant to vacate the property. If the tenant doesn’t leave by the specified date, the landlord could start eviction proceedings. Alternatively, if both parties agree, the tenant could switch to a month-to-month tenancy. However, this will depend on the tenant’s specific situation and local rental laws.

 

For All Landlords and Tenants

A lease renewal is a critical tool in the landlord-tenant relationship. It extends the lease period while updating the rent, terms, and duration. As a landlord, it’s imperative to understand the process of renewing a lease to save time and stress.

A property management company can help landlords navigate the ins and outs of lease renewals. Start looking for the best one in your area using our online directory!

 

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Everything You Need To Know About Adding A Tenant To Your Lease

Posted on by admin

Adding a tenant to the lease agreement is not easy. There are several considerations landlords should take into account before they allow another person to occupy their property. Moreover, it’s important to follow due process to avoid potential problems.

 

Why Should Landlords Add a New Person to an Existing Lease?

Landlords may be tempted to allow a new tenant to move into the property without modifying the existing lease. After all, it’s much faster and a lot less paperwork. But, adding a tenant to the lease is much safer in the long run. That’s because unofficial tenants can introduce unnecessary risks. Modifying the lease or creating a lease addendum and adding a tenant is a much safer option. Here are a few reasons why landlords should consider adding a new tenant to an existing tenancy agreement.

 

1. Updated Terms and Fees

When landlords add a roommate to the lease, it allows them to update the financials. This means they can update and increase the security deposit, applicable fees, and monthly rent payments. This allows landlords to cover the utility bills that will likely increase due to increased usage. It can also help landlords keep up with the increased maintenance costs.

 

2. Background Checks

tenant Background CheckLandlords may trust the old tenant, but that doesn’t mean the new tenant is just as reliable. That’s why we recommend going through the official process of adding a tenant to the lease instead of simply letting someone new move in. It allows the landlord to run a background check and ensure the new tenant meets the usual requirements.

For example, the landlord may not be open to adding someone to a lease with bad credit. Going through the proper procedure will allow them to verify the person’s financial history. The landlord can then deny the application and continue with the existing lease agreement.

 

3. Responsibilities and Rights

Lease agreements contain both the landlord’s and renter’s rights and responsibilities. Clearly laying these out is the key to fostering a good relationship with the tenant and maintaining order. Adding a tenant to an existing lease or adding a tenant to the lease addendum will ensure the new tenant understands their rights and responsibilities. It also clarifies the relationship between the landlord and the new tenant. Moreover, it helps both parties resolve disagreements as the lease contract terms bind both.

 

The Process: Adding a Tenant to the Lease

What are the steps to add another person to the lease? Whether the landlord is creating a lease amendment, adding a tenant, or forming a new contract, here are the steps to take to add a new tenant.

 

1. Get a Written Request

Getting a written request from the tenant is always a good idea. Simply talking to the tenant about it may pressure the landlord, forcing them to decide on the spot. Having a written request will give the landlord time to think clearly and make a wiser choice.

The letter should include who the new person is and why the tenant is making the request. This will allow the landlord to understand exactly what the tenant wants.

 

2. Verify the Occupancy Limit

Landlords must check any laws relating to local occupancy limits before deciding. Some states may not impose any occupancy limits on rental properties. But, some establish a clear limit or formula. For example, California has a two-plus-one rule that allows two people per bedroom plus one more person in the property.

That said, the landlord must make sure the tenant’s request will not exceed the property’s occupancy limit. Otherwise, they may violate local or state legislation, resulting in potential liability.

 

3. Get a Complete Rental Application

If the occupancy limit isn’t a problem, the landlord should send the potential tenant an official application form. The potential tenant must complete it and return it by a certain date. This will allow the landlord to review the person’s information and perform a thorough background check.

 

Screen the Potential Tenant4. Screen the Potential Tenant

Upon receiving the application, the landlord must screen the new tenant. Screening can include the person’s credit score, eviction history, and criminal record. Moreover, the landlord should contact any previous landlords or other references to ensure the person is trustworthy and meets their housing requirements.

 

5. Decide

After screening the applicant, the landlord must decide whether to accept or reject the potential tenant. If the landlord chooses to reject the application, they must make sure to notify the applicant of the reason why.

Meanwhile, approved applications will have a different process. In these cases, the landlord can either choose to amend the current lease or create a new lease agreement. Regardless, the landlord must invite the tenant to sign the contract.

 

6. Final Review

If the landlord approves the application, they must meet with the old and new tenants. The landlord must explain the new terms and ensure they understand any changes in the security deposit or monthly rent. Moreover, the landlord should remind the tenants that they are responsible for paying the rent. Afterward, the landlord should create copies of the signed agreement and send it to all the tenants involved.

 

7. Obtain the Security Deposit and Rent Payment

Landlords can increase the security deposit and monthly rent when adding a tenant to the lease. This is outlined in the new contract signed by the parties involved. Once signed, the landlord can ask the new tenant to pay the new security deposit. They may also ask for the rent payment for the upcoming month.

 

New Lease Agreement vs Lease Addendums

Should landlords create a new lease agreement or amend the old one when adding a tenant to the lease? Here’s what you must know about both options.

 

Amending the Existing Lease

Some landlords may want to modify the existing lease agreement without adding too many changes. In this case, the best option is to add an occupancy addendum. This addendum will include all of the changes that will occur after the new tenant moves in. It states the following:

  • All the terms for the new tenant
  • Moving in and moving out dates
  • Additional security deposit
  • Monthly rent
  • Who is responsible for the monthly rent
  • Whether the agreement is individual or joint
  • Special terms and conditions (e.g. usage and payment for parking or utilities)

 

Creating a New Lease Agreement

Creating a New Lease AgreementIf there are a lot of changes the landlord wants to implement, then a new lease agreement may be the better option. This avoids having to create a long list of addendums that may only confuse the parties involved.

The landlord can create a new full-term lease period for both tenants with a new lease. They can also include how much the new rent is, security deposits, and major changes to the terms. But, all parties must still agree to the terms laid out in the new lease agreement. The landlord should clarify the changes, especially to the old tenant, who might think the terms have not changed.

 

Does It Cost to Add Someone to a Lease?

Adding a tenant to the lease doesn’t cost the landlord much. That’s because landlords can charge a new tenant application fee to cover the cost of screening. They may earn more by increasing the security deposit and monthly rent.

 

Protection for All Parties

Adding a tenant to the lease can be tricky for the landlord. But it’s always good to follow due process instead of simply allowing a new tenant and using a verbal agreement. Updating the lease or signing a new contract will prevent complications and protect all parties involved.

Adding new tenants to a lease and screening applicants can be hard and time-consuming. But, landlords can outsource these tasks to a property management company. Look through our online directory and find a reliable property management company today!

 

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When Is It Right To Evict A Tenant?

Posted on by admin

Tenant eviction is a normal part of managing a rental property. But, as a landlord, you need to know when you can legally evict a tenant. This way, you can complete the process in a seamless and efficient manner without breaking any laws.

 

How to Evict a Tenant the Right Way

Eviction is not a one-step process that takes effect as soon as you decide to push a tenant out. Although an eviction lawsuit is one of the quickest civil cases anyone can go through — typically taking place over the span of just a few weeks — it is not something you can start without the right reasons. There are many moving parts involved, and you need to be able to terminate the tenancy first.

 

Check Your State Laws

state law | tenant evictionTenancy termination does not just happen in a blink of an eye. As a landlord, you must give your tenant written notice of termination.

The notice period is not fixed and usually depends on state statutes. Not all states have the same laws about termination notice periods, so you must check your state laws to see what applies to you.

You also need to abide by the rental or lease agreement you and your tenant signed. Most lease agreements dictate how long in advance landlords must give tenants notice of termination, provided they do not conflict with state laws.

Following termination, most tenants either just pack up and leave as told or settle the reason for termination. However, some stubborn or bold tenants might refuse to leave or settle the issue. When that happens, you can then file a lawsuit to evict the tenant. This is called an unlawful detainer lawsuit, otherwise known as UD.

 

The Three Types of Termination Notices

It is important to stress that termination laws differ from state to state. Each state has its own set of protocols when it comes to writing and serving termination notices as well as eviction papers. Therefore, if you intend to send a termination notice to your tenant, you must check your state and local regulations to avoid legal trouble.

Additionally, termination notices can vary depending on the situation. That said, there are three basic types of tenancy termination notices you must know about. These notices apply only to situations wherein a tenant misbehaves, giving landlords just cause to terminate and evict.

Though the terms may not be the same across all the states, here are the three types of termination notices:

 

1. Pay Rent or Quit

The most common reason landlords terminate tenancies is due to unpaid rent. Although tenant screenings can give you a general idea of a potential tenant’s behavior, bad tenants sometimes slip through the cracks.

When a tenant has missed paying rent, you can send them a Pay Rent or Quit Notice. This gives tenants an ultimatum to either settle their overdue rent or move out. In most states, such as California, the time given to tenants to clear their debt ranges from 3 to 5 days.

It is worth noting that not all states require landlords to allow tenants time to pay their rent. As such, if you would rather terminate tenancy than giving your tenant the chance to settle their overdue rent, you can use the Unconditional Quit Notice (explained below) instead.

 

2. Cure or Quit

Lease agreements exist to maintain order and express which responsibilities both tenants and landlords must fulfill. Terms usually include pet policies, noise policies, and the like. When a tenant violates a term in your lease agreement, you can send them a Cure or Quit Notice.

Just like the Pay Rent or Quit Notice, the Cure or Quit Notice gives tenants a chance to right their wrong within a set amount of time. If your tenant refuses or fails to remedy the violation, they must either move out or face eviction.

Some states are friendlier to tenants and have laws requiring landlords to give tenants an opportunity to correct their violations. In states where such laws do not exist, landlords have the option to terminate tenancy unconditionally.

 

3. Unconditional Quit

The Unconditional Quit Notice is the most severe type of termination notice. It does not give tenants a chance to settle their overdue rent or fix a lease violation. A majority of states, though, only allow this type of notice provided the tenant has committed one of the following:

  • Missed the rent deadline more than once
  • Violated a significant term or clause in the lease agreement repeatedly
  • Caused serious damage to the property
  • Taken part in or performed illicit acts such as dealing drugs

 

Evicting a Tenant Without Cause

Typically, landlords have no right to terminate the tenancy without just cause, especially when operating on a fixed-term lease. However, landlords can send tenants a 30-day or 60-day Notice to Vacate without just cause. This usually only applies to month-to-month tenancies, though. Moreover, this type of termination is only allowed in a handful of places. Most cities require just cause to evict a tenant.

 

Possible Defenses Against Eviction

lawyer | tenant's rightsSome tenants will put up a fight when faced with eviction either because they believe they are right or simply in an attempt to have the case dismissed. This can prolong the eviction process and cost you more money in the end.

Tenants can identify mistakes in written notices or claim that you delivered them improperly. Your tenant can also claim that you violated the tenant’s legal rights, such as failing to provide a habitable home. This might justify the tenant’s misbehavior or turn the focus away from the issue. If you want to win your unlawful detainer lawsuit, you must be prepared for anything.

 

Dealing With the Aftermath

If everything goes well, you can win the lawsuit and successfully evict bad tenants. They usually have anywhere from 48 hours to a week, depending on state laws, to evacuate the unit. Though, it does not necessarily end there.

If your tenant still refuses to leave the premises even after you win the case, do not resort to self-help. It is illegal in every state to take such matters into your own hands, even if the tenant squats or deals damage to your property.

You cannot physically remove the tenant or their belongings from the unit. You also cannot change the locks on the door or lock the tenant outside. It is also unlawful to turn off essential utilities or harass the tenant in any way, shape, or form.

What you can do, though, is to seek help from law enforcement. Go to the sheriff’s department and show them the court judgment. The sheriff or marshal will then allow the tenant a set amount of time to clear the premises. If they still refuse to do so, the sheriff or marshal will be the one to physically remove the tenant.

 

A Necessary Part of Being a Landlord

As much as you would like to, it is impossible to have model tenants all the time. Once in a while, you will come across a bad tenant who always misses rent or breaks lease terms.

Sometimes, no matter how uncomfortable it makes you feel, you have no choice but to evict a tenant. When that time comes, remember to act within the law. If you need more help navigating the often-confusing laws on eviction, look for a property management company using our online directory. Search by zip code or city to find the best company near you.

 

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A Guide For Landlords On How To Make A Rental Contract

Posted on by admin

The landlord tenant agreement is an important document that details the responsibilities of both parties. As such, landlords should know the basics of a rental contract, as well as how to make one. If you’re a first-time landlord, here’s a helpful guide to get you started.

 

What is a Rental Contract?

A rental contract, also known as a rental agreement, is a legal document signed by tenants and landlords. It establishes the rights and responsibilities of each party.

For example, a landlord is responsible for creating a safe and habitable environment for the tenant. In turn, the tenant is responsible for keeping the rental property clean and well-maintained. Rental contracts also serve as legal protection in case there are issues with the tenant, landlord, or the leased property.

 

Rental Contract vs Lease Agreement  

Most people use rental contracts and lease agreements interchangeably. While these two documents are very similar, they differ when it comes to tenancy periods.

A rental contract has a short-term tenancy period — usually 30 days. The standard rental agreement renews every month until either the tenant or landlord terminates the contract.

One advantage of having a rental contract is that both tenant and landlord can renegotiate the terms of the contract on a month-by-month basis. For example, landlords can raise the rent to remain competitive. However, one downside of a rental contract is a potentially high turnover rate. Landlords may have to work harder to keep the rental property occupied throughout the year.

Meanwhile, a lease contract has a long-term tenancy period — usually 12 months or longer. The basic lease agreement is terminated at the end of the agreed-upon period. With a lease agreement, landlords have a more stable rental income while tenants don’t have to worry about a rent increase. However, terms cannot be negotiated until the end of the lease agreement.

Apart from the tenancy period, though, rental contracts and lease agreements have similar content. They establish the terms of tenant-landlord relationships.

 

What Is Included in a Rental Contract?

A basic rental agreement or residential lease agreement should contain these important components:

 

1. Tenant Names and Contact Information

The residential rental agreement should contain the names and contact information of tenants. It’s important to have everyone who intends to occupy the rental property sign the rental contract. In case one tenant fails to pay the rent, the other tenants can be held equally responsible. Similarly, if one tenant violates the lease terms, other tenants can also be evicted.

In this section, the landlord can also establish occupancy limits. Only those included in the rental contract, as well as their minor children, will be allowed to live in the rental property. You can also have a stipulation that guests can only stay a maximum number of days. If there are unapproved tenants, the landlord has the right to terminate the lease and evict the tenants.

Landlords can also set a maximum occupancy limit based on the square footage of your property. Make sure to check federal, state, and local regulations to determine enforceable occupancy limits in your area.

 

2. Landlord Name and Details of Rental Property

A lease contract should include the name of the landlord, as well as his/her contact information. Tenants must know how to contact their landlord and where to send notices, requests, or complaints. It’s also crucial to include details of the rental property including the complete address. If you are offering parking and storage, the contract should identify which specific spot or stall a tenant has access to.

 

3. Lease Terms

The lease term explicitly states the length of tenancy. It can be a month, 6 months, 12 months, or longer. The lease term should indicate the start date of the rental contract. Most lease terms begin on the first day of the month. The expiration date of the lease should likewise be included.

 

4. Rent Details

A residential lease agreement must include the dollar amount of rent that tenants pay each month. Landlords should specify when the rent is due (typically on the first day of every month), acceptable payment options (personal check, debit, or credit card), and how to pay rent (in-person, mail, or online).

The rental contract also contains information about late rent payments. For example, will the landlord have a grace period for rent payments before he/she charges a late fee? In addition, the landlord can establish consequences for late rent payments — such as possible eviction from the rental property.

 

5. Security Deposits

A basic house rental agreement will have stipulations on how the security deposit is kept and/or used. For example, can the landlord use the security deposit to claim unpaid rent, to pay for damage caused by the tenant, or for move-out cleaning costs? The landlord can also state that the security deposit cannot serve as last month’s rent. In addition, the lease agreement should cover when and how the security deposit will be returned to the tenants.

 

6. Maintenance and Repairs

Even if you opt for a simple lease agreement, it should clearly detail the responsibilities of both landlord and tenant when it comes to maintaining the rental property. The rental contract may stipulate that the landlord is responsible for maintenance and repairs. Meanwhile, tenants are required to maintain the rental property, as well as provide proper notice in case there are maintenance issues such as water damage or mold removal. Landlords can also impose restrictions on what alterations tenants can and cannot do to the rental property.

 

7. Rules and Regulations

Landlords must enumerate the rules and regulations for their rental property. Having these policies listed in the rental contract can ensure compliance from the tenants. This section can include a no-smoking policy, pet-related policies, proper use of amenities, and what constitutes criminal or illegal activity. The rental contract should also include fines and penalties for tenants who violate these rules and regulations.

 

Important Clauses to Include in Your Rental Contract

Apart from the basic components of a rental contract, there are important clauses that landlords should consider including as well. If these clauses are not included in the standard rent agreement, landlords can also create lease addendums to address specific issues or concerns.

  • Landlord’s Right of Entry: It’s important to include a clause regarding the landlord’s right to enter a rental property to prevent claims of illegal entry or violation of privacy from tenants. This clause establishes procedures for making repairs or showing the unit, as well as proper notice prior to entering the premises.
  • Disturbance Clause: A disturbance clause can help maintain peace and quiet in your rental property. Tenants have to keep noise levels low at certain hours (from 9 p.m. to 7 a.m.) so that neighbors do not complain of excess noise or disturbance.
  • Termination of Lease: Landlords may opt to have a termination clause in their lease. IT establishes valid reasons for terminating the rental contract early. For example, the landlord may break the contract and evict a tenant who has not paid rent for several months. This clause can also protect tenants in case their landlord does not fulfill his/her duties and responsibilities.
  • Dispute Resolution: Including a dispute resolution clause in the rental agreement can help landlords avoid costly and time-consuming litigation. Landlords and tenants can pursue alternative methods such as arbitration and mediation.
  • Required Landlord Disclosures: Depending on your state, landlords are required to make disclosures regarding rent control, smoke and carbon monoxide alarms, presence of lead-based paint, a previous case of mold, and/or bed bugs, recent flooding, and non-refundable fees.

 

Importance of Having a Rental Contract

rental agreementThe importance of having a rental contract cannot be overstated enough. A rental contract is critical in setting expectations for both the landlord and the tenant.

A simple but clearly defined lease agreement can pave the way for a good landlord-tenant relationship. If tenants are happy, they’re likely to pay rent on time and extend their lease contract. Meanwhile, if landlords are happy, they’re able to provide quality service to their tenants.

Since this is a legal document, make sure to have your attorney or property manager look over the provisions. This is to ensure the rental contract is fair and does not violate the laws and rights of both parties.

 

Need help with drafting your rental contract? Consider the benefits of having an experienced property manager by your side. Property managers know how to create lease agreements that protect both the landlord and the tenant. If you’re interested, feel free to browse the Rental Choice online directory to find the best property management company in your area!

 

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