Real Estate Broker · Greenville, SC · Member since 2013 · 269 posts · 141 votes
Hi BP, I'm in the process of buying my first rental property and want some input... In your experience, what are some things that need to be included in my lease agreement? Thanks!
Buffalo, NY · Member since 2013 · 106 posts · 75 votes
13y
We are working on adding this addendum to our form bundle in light of the recent changes so I can't give you our official version yet. However I really like the Wichita Falls Housing Authority's because they respond to the need for a plan to include scheduled inspections with guidelines in the event of violation. They clearly understand the verbiage requirements. Here is the link http://www.wfha.com/tenant/policies/housekeeping_policy.pdf
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
13y
Michael Smith that is a big question. You might want to checkout some of the better landlording books like "Landlording" by Leigh Robinson or Mr Landlord's materials.
Some ideal to get you started.
Right of landlord to inspect
tenant will not change locks
who is responsible for utilities
tenant is responsible for all fines and violations caused by their actions.
Define "guest" and how long they stay.
list all occupants including children and relatives
In MD and possibly other states, and additional moneys due under lease are "Due as additional rent" - this allows you to go to rent court for fines.
pet policy - what happens when they get a pet after moving in?
These are just some ideas off the top of my head. Good luck - Ned
Real Estate Investor · Austin, TX · Member since 2011 · 271 posts · 106 votes
13y
A couple of many:
I make late fees start 2 days after the 1st and it costs them 5% of rent.
Tenant to accommodate showings last 30 days of tenancy
Tenant to provide proof of renter's insurance
Try and get direct deposit for rent
Real Estate Investor · Austin, TX · Member since 2011 · 271 posts · 106 votes
13y
Michael Smith Yes, if you are going to freehand a lease I'd have an attorney look it over but why bother drawing up a fresh lease.
You should be able to find some suitable leases through real estate associations. I just googled it and came up with this one from what appears to be the Florida Assoc. of Realtors but make sure you verify http://www.southcom.mil/militaryfamilyservices/Documents/Residential%20Lease%20Agreement%20for%20Single%20Family%20Home%20or%20Duplex.pdf
Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
13y
Originally posted by Chris Sweeney:
A couple of many:
I make late fees start 2 days after the 1st and it costs them 5% of rent.
Are there any State-level regulation on late fees?
Late fees / NSF fees here are stipulated in the residential tenancies act not to exceed what the bank would levy for an NSF cheque. In practice, this means a cap of $40 - $50 before the Tenant could contact the Rentalsman and claim we were being unreasonably heavy-handed.
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
13y
I found it was actually cheaper to use the lease my attorney recommended than to have them review the one I came up with to include all of the applicable state mandated stuff...you may want to just make a call and ask if they have a lease they recommend and how much it is.
Real Estate Investor · Austin, TX · Member since 2011 · 271 posts · 106 votes
13y
Roy N. Yes, late fees are hot topic in CA. Predetermined late fees are deemed illegal and any such fee must be justified by the landlord as a real cost. Below is how some landlords deal with this and I can't speak to the legality of it.
The best solution to this is to add a clause in your lease in every place where an additional fee accrues to you, that expressly states that the tenant agrees that the additional fees are rent due to you. Since those "fees" are now "rent", you are allowed to ask for that "rent" to be paid in full when you seek your judgment.
Buffalo, NY · Member since 2013 · 106 posts · 75 votes
13y
Great advice by Ned Carey and Chris Sweeney. There are so many addendums that can and should be included to protect yourself as much as possible. The latest one I'm recommending is a Good House Keeping Addendum that gives you the right to get rid of hoarder tenants. Seeing that as of May 1st they are a protected class its a good idea to make clear that poor house keeping that creates an unsafe environment and can be considered (and treated as) damage to the property and cause for eviction.
Buffalo, NY · Member since 2013 · 106 posts · 75 votes
13y
Unfortunately not just NY. The "disease" is being recognized by the American Psychiatric Association. So this means it will be treated the same as anyone with a mental disability like Post Traumatic Stress Disorder, Autism, etc.. Which makes them a protected class now. The more disturbing part of the story is the Fair Housings recommended action for landlords dealing with tenant hoarders.
Here is what they say.. Hoarders, as persons with disabilities, have the right to request a reasonable accommodation. A reasonable accommodation is a request for a waiver or change in policies, practices, procedures and services to provide equal access and opportunity in housing for persons with disabilities. There must be a direct connection between the person’s disability and the reasonable accommodation request. An example of a reasonable accommodation by creating a remedy plan to preserve the tenancy. Included in the plan are support services and an individualized schedule for cleanup and inspections.
So landlords I guess will have to find some free time for "support services and scheduled inspections".
Buffalo, NY · Member since 2013 · 106 posts · 75 votes
13y
We are working on adding this addendum to our form bundle in light of the recent changes so I can't give you our official version yet. However I really like the Wichita Falls Housing Authority's because they respond to the need for a plan to include scheduled inspections with guidelines in the event of violation. They clearly understand the verbiage requirements. Here is the link http://www.wfha.com/tenant/policies/housekeeping_policy.pdf