5 Lease Essentials for 2021
As we turn the calendar pages and welcome in a new year, it is a great time to explore what we should update in our own lives. As landlords, it is essential to have accurate lease agreements. They need to be in line with local and state laws, as well as the unique aspects of your rental property. Why not use the new year as a time to reexamine your lease agreements?
Identify the Parties
While it may sound like a given, identifying who is legally responsible on the lease is an essential part of this binding agreement. Make sure that your full legal name is listed as the landlord. If you have recently changed your name due to marriage, for example, update that on your lease agreements.
List each of the tenant names on the lease, ensuring that you have their full legal names. Both you and your tenant(s) need to have their names printed on the document. All parties need to sign at the end of the lease agreement too. This can help to alleviate many problems that may arise down the line.
Identify the Leased Property
Just as it is important to identify the people who will be residing in your rental property, it is necessary to have the exact address and property listed on the lease agreement. This can be tricky on more remote properties though. Including a latitude and longitude of the location can help in such situations. It is also important to address what is not included in the property. This can be things such as a locked shed that is on the premises, but not for tenant use.
Access
Although you are ultimately the owner of the property, your tenants should feel comfortable in the home that they rent. If you wouldn’t want someone showing up at your front door to do repairs without prior notice, don’t do it to your tenants. In your lease, include what and when maintenance should be expected. Also include the amount of time tenants will be given prior to your visits. However, it should be noted in the agreement that such notice may not be possible in all instances, such as emergency circumstances.
Rental Term
When are your tenants looking to move into their new place? Are you a landlord in a more college-centered town? Do you own a seasonal rental home? These are important things to consider when it comes to designing your lease rental term. Typically, lease terms are one year, but can vary, depending on circumstances and your personal preferences. However, regardless of the lease term you have identified, make sure to include it in your agreement so that you and your tenant are on the same page.
Moving Out Process
One of the more dreaded parts of being both a tenant and landlord is the whole moving process. It’s backbreaking and time consuming for both parties. Tenants are often excited to be moving and focusing on the new. Meanwhile, landlords may be more focused on the present condition of their property. Outline in your lease what you expect of your tenants when they vacate your rental property. This includes what the security deposit covers and what happens if they leave any personal belongings when they move.
Conclusion
As you can see, there are a lot of things to consider when it comes to writing or updating rental lease agreements. Whether you own one rental home or several, keeping up to date with your lease is an essential aspect to being a landlord. If it seems a little overwhelming or daunting, the professionals at The Property Manager can help with leases, tenant management, and more!
References
7 basic parts to include in your rental lease
How to build a Bulletproof lease
Key legal components of lease agreements
Lease agreements, Lease components, Parts of a lease agreement
