10 Legal Disclosures I Include in My Rental Applications

10 Legal Disclosures I Include in My Rental Applications

2 min read
Brandon Turner

Brandon Turner is an active real estate investor, entrepreneur, writer, and podcaster. He is a nationally recognized leader in the real estate education space and has taught millions of people how to find, finance, and manage real estate investments.

Experience
Brandon began buying rental properties and flipping houses at the age of 21. He started with a single family home, where he rented out the bedrooms, but quickly moved on to a duplex, where he lived in half and rented out the other half.

From there, Brandon began buying both single family and multifamily rental properties, as well as fix and flipping single family homes in Washington state. Later, he expanded to larger apartments and mobile home parks across the country.

Today, Brandon is the managing member at Open Door Capital, where he raises money to purchase and turn around large mobile home parks and apartment complexes. He owns nearly 300 units across four states.

In addition to real estate investing experience, Brandon is also a best-selling author, having published four full-length non-fiction books, two e-books, and two personal development daily success journals. He has sold more than 400,000 books worldwide. His top-selling title, The Book on Rental Property Investing, is consistently ranked in the top 50 of all business books in the world on Amazon.com, having also garnered nearly 700 five-star reviews on the Amazon platform.

In addition to books, Brandon also publishes regular audio and video content that reaches millions each year. His videos on YouTube have been watched cumulatively more than 10,000,000 times, and the podcast he hosts weekly, the BiggerPockets Podcast, is the top-ranked real estate podcast in the world, with more than 75,000,000 downloads over 350 unique episodes. The show also has over 10,000 five-star reviews in iTunes and is consistently in the top 10 of all business podcasts on iTunes.

A life-long adventurer, Brandon (along with Heather and daughter Rosie and son Wilder) spends his time surfing, snorkeling, hiking, and swimming in the ocean near his home in Maui, Hawaii.

Press
Brandon’s writing has been featured on Forbes.com, Entrepreneur.com, FoxNews.com, Money Magazine, and numerous other publications across the web and in print media.

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Instagram @beardybrandon
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[Editor’s Note: The contents of this article do not constitute legal advice. Please be sure to check with a legal expert in your market before implementing these items into your documents.]

To be successful in the business of landlording, you have to know that the person who you are entrusting with your investment is going to care for your property and help you prosper in this business, rather than assist you going down in flames.

The legal part of the application is where the landlord covers their hiney and makes sure the applicant is fully aware of what happens with the information they supplied. To avoid any misunderstandings, I make sure my application includes the following information.

10 Legal Disclosures I Include in My Rental Applications

1. The Applicant’s Assurance

The applicant agrees that the information in their application is true and that an incomplete application or information discovered to be false is grounds for denial.

What landlord wants a tenant who lies from the very beginning?

limit-liability-landlords

2. The Application Fee

This is where the applicant is told in writing that their application fee is non-refundable and will be used to cover the landlord’s costs to verify the information they have listed on their application.

Related: How to Successfully (& Legally) Raise the Rent as a Landlord

3. Permission to Contact

Here the applicant is made aware of who the landlord (or the landlord’s representative/agent) will be contacting to obtain information as to whether the applicant is a suitable candidate for tenancy. Really, the applicant simply gives the landlord permission to contact whomever they deem necessary.

4. Liability

Make sure to include a clause that releases the landlord from any consequences that arise from screening the applicant.

5. Extended Authorization

We like to include a line or two that the information supplied by the applicant on the application may be used at any time during their tenancy or after their tenancy has ended. The information on the application is especially helpful for collecting debts after a tenant has vacated.

6. Consumer Report Information

If the landlord will be collecting a consumer report (for the background and credit check), the applicant must be given the name and address of the agency and told of their right to obtain a copy and dispute the accuracy of the report in the event of their denial.

landlord-traits

7. Holding Fee

If the tenant is approved, provide the terms of when the security deposit, also known at this point as the “Holding Fee,” or “Deposit to Hold” must be paid to guarantee their position.

We allow our tenants 24 hours from the time of approval to supply the holding fee and also sign the Deposit to Hold Agreement, which states the specifics of how long the unit will be held for the applicant, as well as the consequences should they fail to meet all of their obligations and perform by the given date. No tenancy is guaranteed to the applicant until they have been approved and have paid the holding fee.

Related: 6 Common Application & Screening Mistakes Property Managers Make

8. Failure to Perform

Should the tenant fail to supply the holding fee for the rental within the specified time period (24 hours), the applicant is made aware that the rental will be made available to other applicants.

9. Move-in Requirements

This is where the tenant is made aware of what will be required of them after they are approved and before they are given keys, such as paying all move-in funds, deposits, fees, transferring utilities, signing a lease, and so forth.

10. Grounds for Denial

Finally, the applicant needs to be made aware that if they fail to meet the minimum standards for qualification due to information received from any sources or if they fail to perform during the application process, they will be denied.

Do you have anything you’d add to this list? Do you include all of these items in your application?

Comment below!