{"id":108566,"date":"2019-03-15T11:00:11","date_gmt":"2019-03-15T17:00:11","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=108566"},"modified":"2023-07-31T15:21:41","modified_gmt":"2023-07-31T21:21:41","slug":"lease-clauses","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/lease-clauses","title":{"rendered":"25 Crucial Clauses Landlords Need for a Highly Enforceable Lease"},"content":{"rendered":"

DISCLAIMER: This article does not constitute legal advice. As always, consult an attorney or other appropriate professionals as individual situations will differ.<\/em><\/p>\n

It’s important to have an enforceable lease that protects both you and your tenants. It must hold up in a court of law, something that you’ll need to confer with your attorney on since local laws can vary considerably. While your individual lease may differ than mine, I have included a number of clauses here that may be helpful to you\u2014or at least that you might want to consider. Please note that the verbiage in these clauses may not be applicable to you and that consulting property managers and real estate lawyers is best when drafting up your own lease.<\/p>\n

With that, let’s dig into the process.<\/p>\n

Related: <\/strong>Breaking a Lease: What Landlords Should Know<\/a><\/em><\/p>\n

Setup<\/h2>\n

First, define exactly what you’re leasing. Where is it located? How long of a term are you thinking? How much will the rent be?<\/p>\n

Leased Premises<\/h3>\n

The Leased premises are located in the City of X, County of Y, State of Z, and commonly described as 123 Main St, together with the inventory of furniture, if any, and appliances attached hereto (\u201cPremises\u201d) for use as a private residence only. If anyone else has guaranteed performance of this Lease Agreement, a separate Guaranty of Lease is attached.<\/span><\/em><\/p>\n

Term<\/h3>\n

The term of this agreement shall be for a term of ONE YEAR, beginning on the 31st day of March, 2019, and ending at midnight the 30th day of March, 2020. This Lease Agreement will automatically renew for another full year unless either party gives at least sixty (60) days’ written notice of termination or intent to vacate as required by paragraph 14.<\/span><\/em><\/p>\n

Monthly Rent<\/h3>\n

Base Rent:<\/span>\u00a0$995<\/span><\/em><\/p>\n

Furniture: <\/span>N\/A<\/span><\/em><\/p>\n

Cable: <\/span>N\/A<\/span><\/em><\/p>\n

Washer\/Dryer: <\/span>Included<\/span><\/em><\/p>\n

Carport\/Garage: <\/span>Included<\/span><\/em><\/p>\n

Other: <\/span>Pet Rent\u2014$50<\/span><\/em><\/p>\n

Total Monthly Rent: $<\/span>1,045<\/span><\/em><\/p><\/blockquote>\n

Next, how are they to pay rent and when is it due?\u00a0 What if it’s late?<\/p>\n

Be clear about what is due when, especially at the beginning when you’re collecting deposits and first month’s rent. Note: Many people have first month and deposits due at the same time. I do this as well; however, sometimes people simply can’t pay all that money up front, and if they have great references from landlords\/employment, I will often allow split payments. In addition to this, many laws differ on how much you can charge for late rent. Be aware of these laws.<\/p>\n

Payment of Rent<\/h3>\n

Tenant agrees to pay rent to Owner in advance and without demand, via electronic funds transfer:<\/span><\/b><\/em><\/p>\n