What are the best things you include in YOUR lease agreements ???

What are the best things you include in YOUR lease agreements ???

Pleasant Valley, NY · Member since 2016 · 43 posts · 4 votes

I will be renting my first house in the next couple months.

What are some of the best things you guys include in your lease agreements that you've learned over the years ?

I'd be interested to know the story behind it as well :)

Thanks for your feedback !

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Boston, MA · Member since 2013 · 99 posts · 28 votes
9y

Some ones that I've added, based on experience:

Tenants are not to remove or disable smoke detectors, and are to test them periodically and promptly report issues.

Tenants are not to put grease, fat, or fibrous items in the garbage disposal.

No objects except toilet paper are to be flushed down the toilet - even items labelled "flushable."

Smoking is not allowed anywhere on the property, indoors or outdoors.  (If you are okay with outdoor smoking, maybe consider restricting it to designated areas, away from flammable material like mulch.  And require that butts are to be safety discarded).

No guests are allowed to stay over more than xxx nights within a year without prior approval.

If tenants fail to keep appointments with service technicians dispatched by me to the property, they will pay any missed-appointment fees.

Specify responsibilities for snow and ice removal, but consult with local laws and ordinances.

No subletting, and no Airbnb-type rentals.

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  • Steve RozenbergPro Member
    Specialist · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
    9y

    I would make sure that you clearly define the security deposit disposition procedures and what the expectations are for the disbursement of funds for the security deposit. This is normally one of the top reasons landlords are in law suits. We have them sign something that shows what the min fees are that will be deducted from the sec deposit should the property not be returned in the same condition minus wear and tear. 

    The more clear and upfront in the beginning the better it will be should they ever move

  • Investor · Madison, IN · Member since 2016 · 110 posts · 89 votes
    9y

    No inside furniture outside. C neighborhood, tenants had couch and loveseat in the backyard, using it as lawn furniture. 

    curtains or mini blinds are the only acceptable window coverings. I've had them hang blankets, cartoon sheets, they've put up trash bags, aluminum foil, newspapers. 

    The only things allowed on porches and balconies is potted plants and furniture designed for outside use. I've had tenants use porches and balconies as additional storage, collection point for garbage bags, grilling area, and laundry drying( that they never seemed to bring in) 

    No vehicles parked in the yard. 

    No changing oil on the lawn or driveway. 

  • Pleasant Valley, NY · Member since 2016 · 43 posts · 4 votes
    9y

    @Julie Thevenow It's amazing that I have to include things to make them act like a normal person !! Ha

    @Steve Rozenberg I heard a tip from a guy at a bar once that if you don't have a property manager, pretend to be the property manager so the tenants don't think you own the house. Is there any law that says I can't do this ? I think it's a great idea. If you pretend to manage the property you can always blame everything on. "I don't think the owner would like that".

    What are your thoughts on that ?? 

  • Steve RozenbergPro Member
    Specialist · Houston, TX · Member since 2015 · 1k+ posts · 1k+ votes
    9y

    I would check with local law and regulations. Could be construed as misleading, like telling someone your a police officer and your not. Not sure that is how i would like to run my business model thru lies. When you own a rental property you own a business, the IRS, Fair Housing, Discrimination Laws, Fair Credit Reporting Act, Local property codes all say you are a business and are watching you very closely. I would not do this on a bed of misleading your client the tenant. You the landlord have more government agencies watching you and protecting the rights of the tenant then you could possibly imagine. 

    Also now a days with the internet the tenant can find out the owner within 30 seconds, not worth setting up your model that way if you ask me.

    Before you do anything I would create policies and procedures of how you run your business, what you policies are for certain situations, like late rent, maintenance items needed to repair, who is responsible for what, when you are open for business etc. If you do not set up the proper structure in your business you are sure to fail or worse be the 1 out of 3 landlords tied up in a lawsuit every year because you did not set up your model correctly. 

    It is easy to find a house and get it rented. The true test is doing that for the next 20 years as a business that you run, not one that runs you.

  • Pleasant Valley, NY · Member since 2016 · 43 posts · 4 votes
    9y

    @Steve Rozenberg Thank you for the advice.

    I will try to be as prepared as I can

  • Pleasant Valley, NY · Member since 2016 · 43 posts · 4 votes
    9y

    @Julie Thevenow I didn't know you could go that far with a lease.

    So basically you can put anything in the lease and it's their right to not rent from you ??

    As long as what you demand is not breaking any state laws

  • Real Estate Investor · Plumas county, CA · Member since 2011 · 150 posts · 88 votes
    9y

    I also have the one about no inside furniture outside. No motorcycle parking in the house. No trampolines. No unregistered or unlicensed vehicles, no RV storage. No cardboard boxes stored on decks or balconies. 

    I like the window covering one, Ill add that.

  • Pleasant Valley, NY · Member since 2016 · 43 posts · 4 votes
    9y

    @Shelley F. No motorcycle parking in the house haha !!

    I would never think of some of these things

  • Boston, MA · Member since 2013 · 99 posts · 28 votes
    9y

    Some ones that I've added, based on experience:

    Tenants are not to remove or disable smoke detectors, and are to test them periodically and promptly report issues.

    Tenants are not to put grease, fat, or fibrous items in the garbage disposal.

    No objects except toilet paper are to be flushed down the toilet - even items labelled "flushable."

    Smoking is not allowed anywhere on the property, indoors or outdoors.  (If you are okay with outdoor smoking, maybe consider restricting it to designated areas, away from flammable material like mulch.  And require that butts are to be safety discarded).

    No guests are allowed to stay over more than xxx nights within a year without prior approval.

    If tenants fail to keep appointments with service technicians dispatched by me to the property, they will pay any missed-appointment fees.

    Specify responsibilities for snow and ice removal, but consult with local laws and ordinances.

    No subletting, and no Airbnb-type rentals.

  • Investor · Calgary, Alberta · Member since 2016 · 168 posts · 123 votes
    9y

    @Steve Nowak are you allowed to specify no subletting (or assigning)? I know in AB unless a landlord has a good reason (that can be proved in court if it came to that), the tenant has the right to sublet or assign the lease. Now the landlord can charge a "reasonable" fee for the tenant to do so, but they must allow it. 

  • Toms River, NJ · Member since 2015 · 21 posts · 10 votes
    9y
    Brianne Hall It varies state by state in the US. See here: https://blog.flip.lease/how-to-sublet-legally-in-all-50-states-c8e204f49bee
  • Boston, MA · Member since 2013 · 99 posts · 28 votes
    9y
    Originally posted by @Brianne H.:

    @Steve Nowak are you allowed to specify no subletting (or assigning)? I know in AB unless a landlord has a good reason (that can be proved in court if it came to that), the tenant has the right to sublet or assign the lease. Now the landlord can charge a "reasonable" fee for the tenant to do so, but they must allow it. 

    In my state, Landlords can flat out refuse subletting and/or assigning without having to provide a reasonable explanation.  As noted by another poster, laws about this vary by location.

  • Boston, MA · Member since 2013 · 99 posts · 28 votes
    9y
    Originally posted by @Account Closed:

    @Steve Nowak You should have in your lease if the service technician fails to show up the tenant should be able to charge the landlord.

    Good point.  I guess it's harder to quantify the damage a tenant suffers from a missed appointment, whereas if a tenant misses an appointment and the technician send me a bill for the missed appointment, I have something actionable and can forward it to the tenant for reimbursement.

    That said, if one of my tenants waited around for a long time for a no-show technician, I would probably offer some type of compensation, depending on the circumstance - even if the tenant didn't request it.

  • Member since 2016 · 13k+ posts · 12k+ votes
    9y

    The reality is that tenants tend to ignore their lease and will normally just do as they please even when you have covered the lease language in detail before signing.

    Spell everything out in detail in a lease, do not assume anything when dealing with tenants. You know what they say about "*** u me"

    Best clause in mine is clearly stating I will be doing quarterly inspections to insure everything is in good working order. This is your opportunity to also insure the tenant has not violated any lease clauses. Never trust tenants to report any issues. They are generally very irresponsible.

  • Rental Property Investor · San Diego, CA · Member since 2016 · 507 posts · 171 votes
    9y

    Are you guys writing your lease agreements from scratch or using templates?

  • Investor · Kansas City, MO · Member since 2017 · 791 posts · 1k+ votes
    9y

    One random thing: If you are going to charge a "pet deposit", call it a "non-refundable pet fee" and not a pet deposit. Otherwise they can argue it's part of the security deposit and that it be applied as such. 

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