What are your best "Special Stipulations" for leases?
Real Estate Investor, Flipper, PM, vacation rental, Wholesaler · Athens, GA · Member since 2013 · 260 posts · 210 votes
Over the years of landlording and owning property in a college town, I have noticed that my Special Stipulations section in my leases have taken on some strange phrases and warnings to new tenants. It seems that each lesson (at times both painful and humorous) has been memorialized into subsequent contracts. From warnings about new pets... to being adults and getting along with roommates... to undrivable cars on blocks...
What are you favorite Special Stips? Feel free to paste them directly from your contracts, and our imaginations can fill in the blanks. This should be good!
@Account Closed
Sort of, we require the "check" before the 2 months start. This prevents people thinking it will come out of the security deposit. Once the check is received the 2 months notice start :)
So far we have never bought the tenant out nor do we honestly plan too. This came about because we had tenants sign long term leases and than break it 75% and 35% through their lease. My least favorite words from a tenant when they are trying to break a lease are "lets come to a solution that works for both of us". So now it is covered in the lease. :)
Rent to students myself. Going on three years now for me and it has been great.
Can you share some of your special stipulations?
Do you use one lease for all students within a property? I decided to use one lease and have all their parents sign guarantor forms. Didn't want to have different leases and have to chase anyone for rent. It has worked out well. I've heard of other landlords in the area using multiple leases for each student.
I have a small addendum to lease but the lease itself is pretty thorough.
Here is one item on addendum I put to cover myself:
All walkways, steps and entrances shall be kept free of snow and debris by Tenant.
I take care of snow plowing and landscaping but I wouldn't want to include the above as part of my responsibility. Although, I do have the snowplow person clear/salt the walkways when out there.
Not much of a special stip but looking forward to the others....
Here are some of my generic:
1. Drug use, excessive alcohol use, or any unlawful activity is not tolerated and is grounds for immediate termination without refund of security deposit, as well as immediate referral to local law enforcement.
2. No (0) pet is approved upon initiation of lease. Please note that other tenants in adjacent unit may have the right to keep pets under a separate agreement. Additional pets must be requested in advance and in writing. If any additional pets are approved in the residence, a pet fee of $200 per pet will be due immediately upon approval. A $10 per-pet penalty is assessed per day if animals are present without written approval. Applicable animal control / health ordinance violations are the responsibility of pet owner.
3. It is understood that all common areas outside of the tenant's unit is for the common enjoyment of all residents. These areas must be respected and maintained in a clean, orderly fashion - included but not limited to trash, debris, odor, unattended possessions, etc, by penalty of $100 fee per incident. As a multiplex property, it is understood that reasonable, good faith effort must be made to be good neighbors for all tenants at this address. Multiple violations of this principle shall result in fees and possible termination. Landlord is not responsible for disagreements of any type between tenants. Tenants are liable for their own actions/relationships and are expected to resolve disputes amicably.
4. If tenant vacates and/or fails to pay rent or fees before the end of the full lease term, the deposit is immediately forfeited. The deposit will not be refunded or credited toward the balance owed under the terms of this lease.
We also rent in a college neighborhood, and have a couple of addendums to our lease - one is a Zero Tolerance for Criminal activity, the other is Tenant Rules and Regulations. A couple of highlights:
Tenant shall IMMEDIATELY contact landlord about any plumbing issues. Tenant shall not put anything in the toilets other than toilet paper. Costs of clearing stoppages due to misuse or improper items being placed in the toilet or other plumbing fixtures shall be charged to the tenant.
Lawn furniture is permitted, as long as it is in good condition and is actually lawn furniture. No couches or indoor furniture permitted in the yard.
In the event of any criminal activity in which the Tenant is directly or indirectly involved, the Landlord will take the legal measures necessary to evict the Tenant(s) from the Leased Premises. This includes but is not limited to illegal drug activity, gang involvement, and domestic disturbances.
"Buy Out" clause. This allows either party to buy out of the lease. This past summer we had two people buy houses and therefore want to break the lease. Instead of the, lets talk about it. We now have it in our lease.
Steam Cleaning of the Carpets/Professional Cleaning of the house- We require receipt proof that the carpets were clean. We require the house to be "professional cleaned. If the tenant can do a great job fine if there is any questions we require receipts.
Landscape/HOA clause- Since 4 of the 8 houses I manage are in an HOA. We require the lawn to be kept to the standards and reqirements of the HOA. Any violations are required to be taken care of by the tenants.
Joe Gore
@Account Closed
Both sides are required to give 2 months notice and than pay a 2 months "buy out" fee.
This is primarily directed at tenants who want to break the lease because "life happens". I originally had it tenant where only the tenant could break the lease. Since I try to make the lease equal to both parties, ie. if one party has the right so does the other party. This past lease revision I changed to Buy Out for both parties.
Joe Gore
@Account Closed
Sort of, we require the "check" before the 2 months start. This prevents people thinking it will come out of the security deposit. Once the check is received the 2 months notice start :)
So far we have never bought the tenant out nor do we honestly plan too. This came about because we had tenants sign long term leases and than break it 75% and 35% through their lease. My least favorite words from a tenant when they are trying to break a lease are "lets come to a solution that works for both of us". So now it is covered in the lease. :)
The security deposit and "buy out" are two different things. The security deposit is to protect against damages. The inspection is not done till everyone's personal belongs are out. If the house is left in the same condition minus wear and tear (which should be non-existent or minimal if you have only been their 4-8 months) than the security deposit is returned in full. If it is not left in the same condition, expenses to return it to that condition are taken out of the security deposit and the rest is returned.
The buy out is for the privilege of breaking the written agreement before the lease officially ends. Yes if I, the landlord broke the lease, I would give the tenant the money when the lease addendum is signed. Personally the money is "damages" and used to install a tenant (landlord side) or move out (tenants side)
Honestly, the reason I created the buy out was to be an "understanding landlord". Personally I have no desire to even have a break lease. It only causes work for me :) This came about because (all happened this summer)
Situation 1- a tenant gave 17 days notice that they were moving out 3 months 17 days early because their house closed early than expected.
Situation 2- 4 months into a 18 months lease a tenant gives the landlord 45 days notice they were moving out because they had a house under contract to buy.
I also didn't think it was right for the tenants to be able to "break the lease" but a landlord wasn't able too.
I follow the due unto others as you want done to yourself philosophy. At the same time this is a business!!! I explain the lease to the tenants before everyone signs it and than I follow it. It is a written contract between two parties. I feel that both parties should be held accountable equally.
Therefore as issues arise, I simply write it into a lease. I hate "lets work it out", instead I just refer them back to the lease.
Our "Property Rules" addendum to the rental agreement is now 39 items long, and yes the list grows when something unthinkable happens. I put it in alphabetical order and present it as an easy reference guide for tenants to use.
Here are a few:
CANDLES: Tenant agrees to take safety precautions when burning candles. to use proper candleholders to catch all drippings and prevent burns, to not burn candles close to flammable materials, and to not leave burning candles unattended.
[Case Study: Our bubble bath loving tenant who burned tea candles in the soap dish of a plastic tub surround and burned a hole through it. Our non-utility paying tenant who used candles instead of electricity and set one burning below a kitchen cabinet- we now have a flame tattoo on the underside of that cabinet- we moved that tenant out and rented the unit to two firemen.]
CARPET CARE: Tenant agrees to maintain carpet with regular vacuuming. If liquid spills on the carpet, Tenant agrees to immediately blot the spot clean with a clean cloth and to consult with Landlord for further cleaning instructions. Tenant agrees not to use carpet cleaning machines that add water to the carpet, as most consumer equipment can not adequately remove water that goes into the carpet and more damage is likely to result.
[Case Study: Remember the spot from "The Cat In The Hat Comes Back"? We had one of those ink spots that grew and grew and grew when the tenant's friend loaned her a vacuum type carpet cleaning machine. Another tenant used so much spot cleaner, dishwashing liquid and who knows what else to clean carpet stains that when the turn over happened our professional carpet cleaners equipment pulled up bubbles and bubbles and bubbles! At move in, we now give tenants a bottle of our favorite carpet spot cleaner and show them how to use it.]
CUTTING BOARDS: When using cutting utensils, Tenant agrees to make appropriate use of a cutting board, so as to not damage countertops and other surfaces.
[Case Study: Common sense is not common, I'm sure everyone has seen this. We now give tenants a cutting board at move in and we rarely see this kind of damage any more. Who wants to prepare food on one of those pull out wooden cutting boards in an old rental unit anyway?]
FEEDING ANIMALS OUTSIDE: Tenant agrees to refrain from feeding stray animals and from leaving food outside for animals, as this can attract stray pets, wild animals, and insects to the property. Bird feeders are allowed, but should be at a sufficient distance as to lessen the chances of bird droppings falling on fences and other property.
[Case Study: If you have a tenant who feeds the animal world, you will be amazed how many cats there are in a neighborhood, not to mention raccoons. A neighbor put dog food out to attract those "cute" raccoons (we counted 14 on her porch at one time), then a bobcat started hanging around the property to feed off the raccoons! They had to hire a professional game hunter to trap the bobcat.]
@Elizabeth Colegrove great point about collecting the buy out at notice. I seen similar arrangements but not collect ahead of time. A motivation to give notice and pay would be to stick them with the remaining lease amount without notice.
Marcia, good point on leaving food out, certainly location specific if you have wild critters in the area!
My college tri-plex has a lease provision that allows me to fine the tenant. It basically begins, for and in consideration of the rents agreed, it is agreed that the landlord shall not be required to perform any management duties beyond collection of rents and building inspections as to maintenance issues.
In the event the tenant fails to perform with respect to this lease agreement which requires the landlord to perform additional administrative duties, the landlord shall then be entitled to additional compensation at a rate or $20.00 per hour, pro rated to a half hour.
Examples of additional duties required shall include, but not limited to, the following:
1. Failure of tenant to return trash carts from the street within 12 hours or any scheduled trash pick up, requiring the landlord to return carts.
2. Removing any trash or debris from the yard, returning toys or other personal items from the yard to the tenant's unit.
3.............11. Coordinating vehicle haul offs, parking disputes, blocking the driveway...
12. Answering any police call required due to tenant's conduct
13. Answering and coordinating any tenant complaints arising from tenant's conduct.
etc. It was a page of stuff and, any other activity required at the discretion of the landlord that reasonably requires time and attention by management.
Such administrative fees shall become immediately due when assessed and notice is given of the assessment and shall become part of the rents next due. Failure to pay rents in full as such become due shall constitute default under this lease agreement.
I only had to assess fees twice as I recall, I'd usually call them, have a nice minute of a chat then remind them of any deficiency. Their response was always, thank you for reminding me instead of zapping me, type of thing and they took car of things quickly to avoid the fees.
This was done on a property I bought with funny money from the city, they had to approve the lease and rents had to meet low/mod rent levels (not a problem here) and had to be approved by the city attorney. The city attorney was rather amazed, saying that's outstanding, you can fine them for non-compliance and that still falls within the rent guidelines. He approved it and asked if he could use it basically.
I had no problem leasing under the lease with tenants after I explained what I expected, they understood the issues. :)
@Marcia Maynard - I'm stealing the feeding stray animals item. I've had several tenants who always want to feed stray cats...which makes them want a pet...and then they get a cat...and then I make them move.
I'm in the process of purchasing a second-story condo that has brand new really nice laminate faux hardwood floors. Two problems--I've been warned me the downstairs owners are crabby and might complain about noise and secondly, only carpet is allowed by CC&Rs but they don't enforce it unless it causes complaints. So, I'm considering to add a stipulation that the tenants not wear shoes in the units and any HOA fines for noise complaints will be passed on to the tenants. What do you think?
This is a great post, but I would have and attorney review lease provisions prior to implementing them.
Landlord tenant law varies from state to state, and you can't simply erase statutory leasehold rights with a provision to protect yourself as a landlord.
For example. @Jack Tucker , you can't simply render a security deposited to be forfeited by non-payment of rent. In Tennessee, that clause could invalidate your entire lease and subject you to civil penalties. Also, landlord/tenant law in our state is pretty specific about maximum fine amounts a lease can impose.
@Elizabeth Colegrove , state laws establishing lease termination provisions will probably create leasehold rights for the tenant that trump your buyout clause.
The Landlord/Tenant act in our state is interesting reading and I would highly recommend that anyone dig in pretty deep and understand how their local jurisdictions are interpreting and enforcing various lease provisions.
I'm pretty sure telling your tenants how to dress or not dress won't fly at all, they have rights of enjoyment of the property. If you don't want people wearing shoes in your unit I suggest you not rent it. Passing on fines is certainly doable and should be. :)
No, security deposits are for physical damages, not unpaid rents.
Steve, Termination arrangements are when the tenant wants to leave prior to the lease termination, they aren't claiming tenants rights to remain when they want to leave. The arrangement is to allow them out with less of a financial obligation than paying the full rents remaining under the lease.
Bill--I don't see how it's much different than not allowing smoking in a unit. Fortunately, we have a really tight rental market and it's a very nice unit so I may just test it out anyway.
Shari - no disrespect intended - but let me see if I understand what you are saying. You have flooring on a 2nd story condo that violates CC&R's, possible agitated complainants below, you are a broker, and you want to incorporate a lease provision that covers up your violation of the CC&R's?
I don't own the unit yet. The current owner put hard surface floors in. I may end up having to change to carpet IF someone complains. HOA president says as long as he can remember nobody has had to change their flooring and they have not enforced it. I'm not saying it's right but of 200 units many have hard surface flooring.
Believe it or not, we had to add the following to the Schedule 'A' (House Rules) of our lease:
It is amazing what landlords will think of next, and if they keep it up, they will need a u-haul truck to haul the application around. All I can say one trip in front of judge things will be back to normal and landlords wonder why their units are vacant.
Joe Gore
@Account Closed
Things may be different down there on your end of the continent, but I must respectfully disagree with you on this one.
It is precisely due to "trips before the judge" or Rentalsman that we have reluctantly added clauses such as "Do not park on the sidewalk" and "leave the heat on in winter" in the Schedule 'A' to our lease.
Surprisingly, what you and I might consider to be common sense cannot always be expected of a tenant unless you specifically spell it out in the lease. I would love to have a single clause that read "use your brain", but that would probably be too vague and might even be considered discriminatory.
True.
Well, I see a lot of difference, shoes don't tint walls and the entire interior, they don't yellow the ceiling and cause, at least as much an odor. Flooring is made to walk on with shoes. If your boss came over to your house for any reason, asking him not to light up inside is pretty well accepted, asking him to take his shoes off, well, I can't imagine asking that of your boss nor what kind of nut he might think he hired.
A little etiquette, I realize that Cali is known for having nuts out there, but it is considered bad manners to ask guests to take off their shoes, I know because it was on the Today show yesterday (LOL) so the host is to furnish them little booties to wear over their shoes or provide slippers/foot wear. Even with that shoes would be worn.
Some people see that as unsanitary walking bare foot where others have walked, want a good dose of athlete's foot, sitting on a couch at a party where others have dangled their feet?
About as far as I think might be even close to reasonable would be to ask that black rubber type soles not be worn inside that could streak the floor.
That's what we require on the deck of the boat, no street shoes on deck. I can tell you the deck of the boat is worth more than the flooring in a condo and deck shoes or tennis shoes really should be worn for safety reasons.
I've never seen a floor that couldn't be cleaned and where scuff marks from shoes couldn't be polished out, didn't even know they made flooring that didn't hold up to shoes.
As a Realtor do you take your shoes off showing properties? You're that comfortable around your clients?
I'm just thinking of the response I'd get if I asked an 84 year old lady, family friend, to take her shoes off that have her arch supports in them. She probably not come in. That's great, the tenants grandma won't be over to visit.
Okay, what happens if someone is wearing a cast on their foot, it has a hard rubber heel on it, can they wear that?
Wait until some kid wearing braces on their shoes can't come in and see if that sounds off any discrimination issue.
Wonder if they wore socks and slipped and fell breaking an arm because they couldn't wear shoes what your insurance agent might say?
I'm just wondering how you intend on enforcing a no shoes policy. I'd think a judge would roll his eyes. I suppose you can write in anything they will sign and they probably won't tell you what they think after they realize you're serious.
No, it's not like smoking at all, it's a gross infringement on tenants rights and requiring them to put themselves in an unusual position with others who may enter. I'm flabbergasted that it's even a serious consideration. :)
Bill--I can see you are pretty worked up about my shoe thing. Actually, I DO ask guests to remove their shoes in our own home and no one seems offended and they come back when invited again. Yes, I ALWAYS ask a homeowner if they would like me and my buyers to remove our shoes when viewing a home and many times even in vacant homes my buyers ask me if they should remove their shoes. It's respectful and it's common in our area. Maybe it's because I've lived overseas (Japan and Czech Republic) where it's extremely offensive not to remove shoes. Personally, I can't understand why people walk on dirty streets, through dog poop, spilled Coke, etc. and then walk all over their floors were the baby plays...but now I'm off topic.