A rental agreement is a document that acts as a contract between you and your tenant that defines the tenancy’s terms and conditions. The standard lease agreement for a long-term rental property is a 12-month Lease Agreement. Lease agreements are essential because they confirm your tenant’s reliability, and you can write the contract in favor of yourself as the landlord. So long as you have these terms in your rental agreement, you’re protecting yourself from liability and your property and money.
As a professional property management company in Orlando, Florida, we’ve taken over management properties that had an awful lease agreement and or did not have a lease agreement at all. Your lease agreement will dictate the success of your rental property. You will have an excellent rental property experience if you have a rock-solid lease agreement.
Here are some of the best terms to include in your lease agreement or rental agreement.
1. Names of All Tenants
Each adult over the age of 18 who resides in the property should be named a tenant and sign the lease. This makes each tenant legally responsible for the lease agreement terms, including rent and use of the property. Legally, this means you can seek rent from any of the tenants if one of them happens to skip out on rent or cannot pay.
2. Rent Amount & Due Date
Clearly state how much the rent is per month and where and how the tenant should pay the rent. It’s essential to make sure your tenant understands how to pay rent. If you want the tenant to send a monthly rent check, provide the address. In this section, you’ll also want to include the amount of any late fees and rent due date. Our Orlando property management lease states that rent is due on the first of each month.
3. Lease Start & Lease-End Dates
You should ensure that the lease start dates and end dates are clearly stated on your lease agreement. The lease start date is the tenants’ move-in day. The lease end date is when they will be moving out (unless they renew the lease agreement.)
4. Security Deposit Amount
Your lease agreement should state how much security deposit you have on file. In many states, you as the landlord are required to hold the tenants’ security deposit in a non-interest-bearing bank account. The security deposit is the tenant’s money held by the landlord and any rental property damage, cleanings, etc. You can use this to claim a portion of the security deposit.
5. What is Included in the Rent
Outline if you’re providing any utilities in the rent such as Water, Electric, Trash, Lawn Care & Pool Service. Alternatively, state the tenant’s responsibility for utilities. Be clear about what’s included in the rent and what isn’t. If you’re providing appliances, list them by name, such as a dishwasher, stove, refrigerator, microwave, washer & dryer.
6. Pets Policy
It is imperative to note whether pets are allowed, what types, how many, and if any extra charges apply. But you can also choose to have a no-pet policy. State that in the rental agreement. Also, state what the consequences are for if they sneak a pet later on during the lease; what kind of pet fee will you charge?
7. Rules of Tenancy
List what you expect of the tenant, such as no illegal activities, no smoking on the premises, and no noise after a particular hour. State that you can terminate the agreement if the tenant fails to abide by the tenancy rules. You’ll also want to protect yourself by adding a mold addendum, drug/crime-free addendum, and move-out checklist and or addendum.
8. Repairs and Maintenance
Your best defense against rent-withholding hassles and other problems is to set your and the tenant’s responsibilities for repair and maintenance in your agreement. This may include the tenant’s responsibility to keep the rental premises clean and pay for any damage caused by property abuse or neglect. Another item you may consist of is
9. Entry to Rental Property
To avoid tenant claims of illegal entry or violation of privacy rights, your agreement should clarify your legal right to access the property. For example, to make repairs and state how much advance notice you will provide the tenant before entering. You’ll also in this section want to state the message of property tours, say if you end up wanting to sell your rental property.
10. Lease Break or Lease Default
Every good lease agreement needs to clearly state what kind of penalty the tenant will incur if they move out before the lease expiration date. Typically you can charge two months for lease default. First, however, you’ll want to specify the termination penalty.
Property Managers Summary
If you have these ten terms in your lease agreement, you’ll be better protected and operate a successful lease and rental property. Owning a long-term rental property requires you to work off of your lease agreement, and a better lease outperforms a poorly written lease agreement.
If you have any questions regarding your lease agreement or property management services, please contact The Listing Real Estate Management, the trusted source for Orlando property management.
