I'm closing on a duplex tomorrow (fulfilling the #90daychallenge!), and I will be inheriting a tenant with the property. She's on a month-to-month lease. When I inspected the property last week I told her that her lease would transfer from the current landlord to the new one, and that I would give her a packet of information about her new landlord once the deal closed.
So far, this is what I'm planning on including. Does anyone have any thoughts on what else I should include?
1. Information on making payments
2. Contact information for emergencies or maintenance, plus reporting procedures
3. Contact information form (to be filled out by her)
4. Common security deposit deductions (from Brandon Turner's book on managing rentals)
5. Notice that she is responsible to procure renter's insurance if she wants it (to be signed by her)
6. Expectations from the tenant (to be signed by her)
7. Notice that having a cat is a breach of her lease, with options to get rid of the cat or begin paying pet rent
Additionally, I will schedule a time to go through the unit and take photos to create a record of the condition of the property as it stands now (sadly, the previous landlord did not take such photos).
Anything else you would include?
Did you put in number of days or weeks a visitor can stay at the place and the repercussions if the guest violates that stay? What about late fee charges and grace periods before the late charge kicks in? Why is pets only specific to cats, shouldn't it be in general, (what if she gets a dog or a python)?
@Brian Adzadi Good thoughts, thanks. About the cat; she currently has a cat, which is in violation of her lease.
When we purchased our property, we just had the inherited tenants sign our company's rental agreement. She is on a month to month, this makes it very easy. Keep the rent the same for the first month, and just put (right in the rental agreement) Rent will increase to $XXX per month as of Jan 1, 2018. Pet rent will be $XX per month as of Jan 1, 2018."
All the other rules you are asking about are in the clauses of your rental agreement.
Find a lease/rental agreement you like and re-type it on your computer. This becomes your master lease/rental agreement for building your RE empire. You can then easily modify your lease for certain situations, or changes to your state law. Do not change it too much, because you want to 100% know your lease/rental agreement and the power that it gives you as a LL. This also gives you the ability to type in the tenant's' name and address, rather than filling in the blanks. This is a much more professional approach.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.