As the small-time landlord goes about getting started managing the rental property they just bought, they are sure to discover that there are literally thousands of different variations of the residential property lease.
It is always best to have a lawyer draft a lease, but lets be honest, how many people can afford to have a lawyer draft them a real estate form every time they need one; and still make profit? More realistically, the landlord will often navigate the web or travel to brick-and-mortar office stores to buy an affordable version of a lease.
With so many to choose from, the list below highlights a few of the bare-minimums that one should check to ensure that the lease includes them.
Preliminary Terms - This section is usually at the beginning of the lease and includes such things as the landlord's name, the tenant's name, the address of the residence being rented, and any appliances that are included in the property that are owned by the landlord (Often times, a separate appliance section may be included in the lease).
Term - Self-explanatory, the term is the length that the tenant(s) will be renting the residence (premises).
Rent/Security Deposit - All leases should of course include the rent.
The rent section will often included the monthly rent amount, the exact day of every month that the rent will be due, and the address at which the tenant(s) can mail the rent check.
A good lease will also include the amount a tenant must pay after a certain amount of days their rent is late and the fee that they must pay if their rent check bounces.
The security deposit often has a section of its own and usually states two things.
First, exactly what the security deposit amount is, and secondly, the number of days before the security deposit will be returned to the tenant after their departure.
Subletting/Subleasing- One always want this section to appear in the lease.
It ensures that the tenant will not rent the residence from the landlord and then turn around and rent it to someone else, leaving the property with a tenant that the landlord didn't approve.
Redecoration/Alterations - Also self-explanatory, this section ensures that the tenant must get the landlord's permission before painting the walls, fixing an appliance, or re-carpeting the floor.
Holdover Policy - This policy is great for busy landlords (Are there any that aren't?).
It usually states that the current lease will hold over as a new month-to-month lease if the tenant and landlord cannot get together in time to sign a new lease before the current one expires.
This situation is also useful for tenants who are unable to stay another year or are unsure of when they are going to need to move out.
It gives both the landlord and tenant flexibility without immediately signing a new lease.
Pets - Four different textboxes often accompanies a pet policy.
First, can the tenant have pets; yes or no? Secondly, what kind of pets specifically can the tenant have if the answer to the above question is yes? Third, a monthly maintenance fee that the tenant pays to maintain the cleanliness of the residence, and fourth, the extra security deposit that the tenant must pay for having the pet.
By checking for the above criteria on any lease one intends to use, they are safeguarding themselves against a few of the "sticky" situations that may arise from lack of specification in the residential lease.
A lease can be both a friend and foe to the landlord, so make sure that you create a friend instead of a foe.