Rental Properties Tips

Protect your investments by adding these must-haves to your rental agreement:

1. Security Deposit Terms

• Specify the amount, when it’s due, and conditions for refunding or withholding it.
• Include clauses regarding damages, cleaning, and unpaid rent.

2. Maintenance and Repairs Responsibilities

• Outline which party is responsible for regular maintenance (e.g., lawn care, plumbing, etc.).
• Specify who handles emergency repairs and the time frame in which issues should be addressed.

3. Late Payment Penalties

• Define due dates for rent payments.
• Include a clear late fee schedule and consequences for habitual late payments (e.g., eviction).

4. Subletting and Guests

• Restrict or prohibit subletting to ensure tenants don't rent out your property without your consent.
• Set rules for overnight guests or long-term visitors.

5. Rent Increases

• Include a clause on how and when rent may be increased, complying with local rent control laws if applicable.

6. Pet Policy

• Specify whether pets are allowed, and if so, the number, size, and type.
• Include a pet deposit and any specific pet-related rules (e.g., noise, cleanup).

7. Term of Lease

• Clearly state the start and end dates of the lease agreement.
• Include early termination clauses, if applicable, with penalties or conditions for breaking the lease.

8. Insurance Requirements

• Encourage or require tenants to carry renters’ insurance.
• Outline the responsibilities of each party in case of property damage or loss.

9. Property Entry and Privacy

• Define the conditions under which you can enter the property (e.g., for inspections, repairs, or emergencies) and how much notice you’ll provide.

10. Smoking Policy

• Specify whether smoking is permitted, and if so, the designated areas.
• Define any penalties for smoking inside the property.

11. Termination of Lease

• Include details on how the lease can be terminated by either party, with or without cause.
• Specify notice periods required for non-renewal.

12. Use of Property

• Ensure tenants understand the property is to be used as a residential space only (unless explicitly permitted for business use).
• Clarify any restrictions on modifying the property, such as painting walls or making structural changes.

13. Dispute Resolution

• Include a clause that specifies how disputes will be resolved, such as mediation or arbitration before resorting to legal action.

14. Local Ordinances and Compliance

• Ensure the lease agreement states that tenants must comply with local laws and ordinances, including noise regulations, waste disposal, etc.

15. Utilities

• Clearly state who is responsible for paying for utilities (electricity, water, trash, etc.).
• Specify whether utilities are included in rent or paid separately.

 
When managing rental properties, it's crucial to protect your investment and establish clear expectations with your tenants.