“How To Make Your Lease Rental Agreement Better” written by Mike Marko
Working on a lease rental agreement and wondering how to make it even better?
A good property manager always presents a good lease rental agreement. That’s in addition to also maintaining and keeping the premises worthy of tenants.
The lease rental agreement is a vital instrument of property management. This agreement must contain all the terms of the contract between the landlord and the tenants.
Without a good lease rental agreement, the contract between the two parties can be subject to doubt. This can lead to misunderstandings, tension, and possibly even conflict.
Your lease agreement must serve as a communication tool between you and your tenant. With that said, you have to be very careful in making it.
Don’t worry, because I’ll guide you in making a better lease rental agreement.
5 Tips in Making a Lease Rental Agreement
A good lease rental agreement is a representation of how reliable your tenancy service is. More than that, it can also protect you when crises arise between you and the tenant.
Today, we’ll start making a good lease rental agreement with the help of 5 simple but indispensable tips. Follow these when crafting your own lease rental agreement.
1) Customize Your Lease Uniquely
It’s important that you customize your lease to make it as strong as possible. Make it unique, but don’t forget to keep it professional.
That means you should take account of the following when customizing your lease:
- Federal, state, and local laws.
- Your specific rental terms and requirements.
Federal, State, and Local Laws
Your lease should be in line with the federal, state, and local laws. Be sure to customize your lease to reflect these laws by adding the right disclosures and clauses.
Specify Your Personal Terms
It’s important to include your own terms and requirements.
This is something to remember because most inexperienced landlords end up just copying a generic lease rental agreement they’ve found online. Then they forget to customize them.
You have to try to make a list of all the special terms you want to apply to your property and its tenants. For example, think about your position on pets.
Do you allow them on the premises? Do you restrict the size or number of pets per tenant?
Things like these should be considered when you’re customizing your lease rental agreement.
2) Be Specific on Rental Terms
Make sure that you’re specific too when creating a lease rental agreement. For instance, you have to specify the starting and end date of the lease in the lease rental agreement.
You also have to include the other party’s full name. There also have to be co–signers’ names, contact information, and their signatures.
Apart from that, the amount of rent, due date, and late fees must also be specified.
You may also want to think about other things like a list of utilities that are and aren’t allowed inside the premises. It’s common that some tenants may bring their own utilities and other house essentials when they move in.
3) Add Some Necessary Clauses
Clauses are necessary, especially for long-term rental agreements. Which clauses are necessary to your lease rental agreement depends on your situation.
The right clauses can reduce the chances of legal problems arising in your leasing business. That’s why it pays to research the most common and useful ones for a lease rental agreement.
To spare you the trouble, I’m including some of those clauses below. Think about putting them in your lease rental agreement.
A severability clause makes sure that the rest of the lease is considered valid even if there’s one phrase that is deemed invalid.
It’s essential to include a severability clause to avoid the risk of setting the rest of the lease as invalid if you make a mistake in one area of the document.
Jointly and Severally Liable
Jointly and severally is a legal idiom for “Both and Equally”.
That means every tenant who signs the lease rental agreement is responsible for the rent and all the terms in it.
All roommates are also equally responsible for paying the full rent amount each month.
What does this mean? Simply, that if one of them fails to pay his share of the rent for a month, the others become liable for the amount he has failed to pay.
So in addition to paying their shares of the rent, they have to cover his too.
Access to the Premises
As a property manager, you are allowed to enter the property on reasonable hours with proper notice.
However, in case of an emergency, this clause will allow you to enter the property even without notice.
Thus you may want to add this to the lease rental agreement in case of emergency, e.g. if you see smoke coming from a window.
Lessee Is Obliged to Maintain
If the tenant damages any unit that belongs to the premises, they’re responsible for the cost of repairs.
Even after your tenant has moved out, this clause will allow you to continue to uphold their responsibility for damage they have left behind.
You can subtract the damage fee from their security deposit or you can bill it to them. Be sure to state which options are available to you in the lease rental agreement.
Make Use of Disturbance
Your tenants are required to behave in a non-disturbing manner. You can customize your clause and state the hours for allowable guests.
In addition, you can also set allowable hours for noisy stuff such as loud music that might disturb neighboring tenants.
If the tenant doesn’t move out by the end of the lease, this clause will automatically turn the contract into a month–to–month one.
This clause will protect you in case you can’t make a new lease in time. It also allows you to double the monthly rate from its original rate, if so desired.
Rent Liability Clause
This clause is about who’s liable for paying the rent. The tenant is legally responsible for paying rent throughout the duration of the lease.
To avoid any confusion, it’s better that you include this clause.
4) Keep Your Lease Updated
It’s important that your lease is updated every time you renew a current tenant or sign up new tenants.
You can update rental terms that include tenant names, lease dates, and fees. Adding up fees for damage fees or pet fees is also a good thing.
Your rent prices must also be updated based on market changes, seasonality, and tenant demand. It’s better to update your rules and requirements too.
Make sure you’re complying with the most up-to-date laws.
5) Use an Online Lease with Digital Signatures
Through this post, you have managed to learn important points to consider in creating your lease rental agreement.
However, it’s also important to consider how the lease is built, presented, stored, and signed.
Customization is easier and possible at any time if you do it online. Digital signatures are just as secure and enforceable as written signatures.
Final Thoughts on Your Lease Rental Agreement
Today, we discussed some helpful tips in making a better lease rental agreement.
It’s important that when giving a lease agreement to tenants, this should be presented in a professional way.
Just remember these 5 helpful tips:
- Customize the lease uniquely.
- Specifically state your tenant terms and requirements.
- Add some necessary clauses to save yourself from legal problems.
- Keep your lease up to date.
- Lastly, make use of digital signatures
Now, you know the best way to make a lease rental agreement. If you have more questions about lease rental agreement creation, just leave them in the comments section below.
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