Flipper/Rehabber · Mount Juliet, TN · Member since 2014 · 107 posts · 36 votes
I approved my applicant that has a dog. Her credit was awesome. All prior landlords spoke highly of her. Her employer's HR dept verified everything I needed. I was getting pumped up about leasing my first property! Then... she asked to see a copy of the lease. I e-mailed her a copy. Here's the thing, I got my lease from a friend that has been doing this a REALLY long time and manages 170 + properties. The lease was written by his attorney. My applicant said in an e-mail to me "I will need to withdraw my application to lease the house based on the tone of the rental agreement.".
CRAP! How should I proceed? Frankly, I'd be okay using a lease from one of her last two rentals. I think my buddy rents more lower-end properties and lower-end tenants so his lease is more landlord friendly. There is a bunch of stuff in it I'd be fine changing or omitting.
Ever run into this? Any suggestions on how to real this applicant back in without appearing desperate?
Aurora, CO · Member since 2012 · 2k+ posts · 1k+ votes
11y
Email her back and say something like: "hey, I understand the lease seems kind of heavy- it's got a lot of legalese because I got it from another landlord who has been in business for ages and has seen a lot of weird issues over the years. So the lease ends up saying things like "you can't keep horses in the bathroom" and stuff like that. This certainly isn't because I would expect you to ever keep horses in the bathroom! It's just in there because at one point someone probably did it. I would certainly be happy to talk with you about any specific clauses that you have issue with and perhaps we can amend them to your liking.
Residential Real Estate Broker · Saint Louis, MO · Member since 2014 · 1k+ posts · 567 votes
11y
I would call her and see if you can sit with her face to face. You need to listen to her and ask her what exactly does she have a problem with. So you can make the judgment call on whether or not to remove the item or items. Your friend probably have a valid point on having everything in the lease. I would think about something long and hard before i remove it.
Investor · Bellingham, WA · Member since 2013 · 210 posts · 138 votes
11y
I can understand your excitement and your frustration, but I *must* agree with the advice above to 1) try to have a face-to-face to see what she's concerned about and try to reassure her and 2) do NOT remove anything that protects YOU! 3)"Good" tenants aren't scared of tough leases, just like "good" drivers aren't afraid of being pulled over. Think about it.
This is coming from someone who just rented my former primary residence to another "professional" couple...who have already cost me over $10K in repairs in the very first month of rental (some of which she is undoubtably culpable for, but I can't prove). A tougher lease on my end could have saved me a lot of money and made her at least partially responsible for the repair costs. Because they wanted to move quickly, and I didn't want to lose a "good" tenant, I have learned a very expensive lesson.
PS - home warranty with tenant responsible for service fees and calls (if legal in your area), if you don't have a big emergency fund... ;)
Real Estate Broker · Louisville, KY · Member since 2014 · 121 posts · 91 votes
11y
@Jason Krawitz If it were me, I would use your friends lease. You said you would be fine omitting or changing items, but you are not an attorney, nor do you have extensive experience as your friend does. There will be more tenants. Likely your friend got burned several times and each time made the lease longer to cover what happened to him. What you don't want to do is let the tenants make you conduct your business their way, you want to remain in a position where you have process, procedures and paperwork and follow that system with each tenant that you created. Just my two cents, good luck!
Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes
11y
Use a lease written by an attorney in your city/state that specializes in landlord/tenant law. Have one review your friend's lease. They'll be the ones defending it in court.
I had a recent applicant that I was going to approve, until we had a discussion about the lease, which I'd emailed her. Her rental experience had apparently been very informal, and she didn't care for "all this legal stuff". I decided not to rent to her.
The lease protects you and the tenant. You can discuss it with her, but it's a legal document, not a warm and fuzzy property description. Be very careful about omitting or changing anything.
Aurora, CO · Member since 2012 · 2k+ posts · 1k+ votes
11y
Email her back and say something like: "hey, I understand the lease seems kind of heavy- it's got a lot of legalese because I got it from another landlord who has been in business for ages and has seen a lot of weird issues over the years. So the lease ends up saying things like "you can't keep horses in the bathroom" and stuff like that. This certainly isn't because I would expect you to ever keep horses in the bathroom! It's just in there because at one point someone probably did it. I would certainly be happy to talk with you about any specific clauses that you have issue with and perhaps we can amend them to your liking.
Your friend's lease was written by an attorney and has a lot of experiences written into it, I'm sure. If she wasn't even interested enough to call and talk about it, just cancelled by e-mail, let her go. She sounds like she might be a problem down the road.
St Thomas, Ontario · Member since 2013 · 575 posts · 408 votes
11y
In my area pretty much all the landlords use a standard lease drafted by the local property management association. There really isn't anything controversial in there. I tell the tenants it basically says look after the place and pay the rent on time. I would get wary if a tenant wanted to pick apart the language of the lease. You don't need that kind of tenant, there are tenants out there that stand to be less trouble.
Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
11y
Let her go! Do not respond to the email. You sure as hell can't start out in this business by putting a prospective tenant in the driver's seat to negotiate YOUR lease. Forget her.
Now - take your friend's to a local RE attorney. Have them review it. Make sure you're good with it. And for crying out loud - stop sweating it.
I can hear you shaking from all the way in Ohio :)
Let her go! Do not respond to the email. You sure as hell can't start out in this business by putting a prospective tenant in the driver's seat to negotiate YOUR lease. Forget her.
Now - take your friend's to a local RE attorney. Have them review it. Make sure you're good with it. And for crying out loud - stop sweating it.
I can hear you shaking from all the way in Ohio :)
Bedford, NH · Member since 2012 · 2k+ posts · 1k+ votes
11y
I find it hilarious that everyone is assuming this lease is appropriate when they haven't even seen it, or even had it's contents summarized. That's some dangerous bias, right there.
Find out what she finds objectionable, and consider dropping it. At remember that the lease is not YOUR lease, singular, it is YOUR lease, plural. It is an agreement between you and the tenant, and like all business relationships, negotiable.
I find it hilarious that everyone is assuming this lease is appropriate when they haven't even seen it, or even had it's contents summarized. That's some dangerous bias, right there.
Find out what she finds objectionable, and consider dropping it. At remember that the lease is not YOUR lease, singular, it is YOUR lease, plural. It is an agreement between you and the tenant, and like all business relationships, negotiable.
That's a very good point, Richard. I was suggesting adopting a conciliatory tone since the prospective tenant mentioned the "tone" of the lease in her complaint rather than any specific terms. I have actually had tenants get sniffy over certain lease terms ("Why does that have to be in there? I would never do that!!"), but then relax when they understand that I'm not actually accusing them of anything in advance, lol! Most people deal with contracts very rarely, and are easily freaked out by them.
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
11y
I'm just here to say you've received wonderful advice to follow. And this advice truly is correct. I wouldn't say it's an option unless you like having tenant-related headaches and losing money.
If you feel like it, you can ask what exactly she doesn't like, but never change a lease for a tenant. There are "plenty of other fish in the sea"!
We want your first go at landlording to be successful.
Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
11y
I would be curious what she finds objectionable.
Usually I have a sit down with an applicant at that stage of the game, to go over the lease, and not only explain the languages in the lease as well as give examples and scenerios.
Many first time renters are intimidated by complicated leases, and I don't know how many times I have seen this facial expression when they come to the clauses that deals with what happens if they die or go to jail, that needs to be explained.
Now, your initial post said she objects to the "tone". So ask her, if you put PLEASE in front of each clause, does everything sound much better all of a sudden?
Flipper/Rehabber · Mount Juliet, TN · Member since 2014 · 107 posts · 36 votes
11y
Well. I asked her if she'd be willing to sit down over a cup of coffee to discuss her concerns. Her reply was that she just isn't sure she'd be able to keep the property as clean as I expect and doesn't want to be help responsible. She said my lease was like a "boiler-plate" apartment complex lease and didn't like the specific restrictions in it. I asked her if I should consider her application cancelled and she said yes. I was emotionally convinced I had the house leased and eager to move into the next phase of this journey so the initial let-down was more dramatic than reality. It's all good. I really appreciate all of the encouraging words from all of you. As a newbie with very few folks around me physically that venture into this, you are keeping my optimism high while temporing my enthusiasm with healthy doses of logical reality. Thank You! Merry Christmas to all of you. I'm sure I'll be back the next curveball that is thrown my way.
Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
11y
I would also advise your applicant on a few points.
Your lease may be extensive but that's part of full disclosure is all about. Protecting both sides by disclosing expectations up front.
She may be able to find places to rent with a one page lease and she may think it means flexibility and less restrictive, but in reality it means rules would have to be made up as things go wrong which she may or may not like.
I too, would prefer to do everything with a hand shake. That's just not possible. At the end of the day, the applicant is looking at the languages in the lease, as well as you, who is the implementer of the lease. If during the interactions, they can develop a trust in you, it makes things easier.
Longview, TX · Member since 2012 · 368 posts · 131 votes
11y
I'd be interested in hearing what the specific clause related to cleanliness is. Especially since she received good references from prior landlords.
It may be too late, but I would use the next one as an opportunity to distinguish yourself from the competition. I disagree with the folks who say don't change your lease for anyone, especially when you admit that there's plenty you'd compromise on. Market feedback is a valuable tool. How you act on that feedback is at your discretion.
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
11y
Yeah, there's compromise, but if you take out things like "keep premises clean and tidy", then there's nothing in there really saying you expect them to not let the place turn into a dump. Even with that in there doesn't guarantee it'll be kept clean, because everyone has their own definition of clean. When you're willing to change a lease so quick for someone who hasn't even proved themselves to you, it shows that you'll probably let them get away with stuff that would really affect you in the long-run.
One guy wanted me to take out the clause that says my insurance doesn't cover his personal things if they are destroyed and that he needs renters insurance. That was a definite "no" on compromising...but I'm sure this is extreme.
One thing that could help is having your lease written in plain English. When it's written in "legalese", it's hard to truly understand and there's really no need. I have had lots of compliments on my lease being easy for anyone to understand with no other possible interpretations. And it's held up quite well in court.