My wife and I have just started investing in rental properties since doing a lot of reading on bigger pockets. We have purchased our first property and have two more under contract. We are nearing the completion of the renovations we are doing on the first property and will be putting it up for rent soon. On the advice I read on here I have contacted a local attorney who does a lot of evictions and he is preparing our lease agreement. As a first time landlord I want to get this right so my question is, what things are on your lease besides the basics? Is there anything you wish you had done differently or things you changed after doing it for a while? Trying to avoid any headaches and pitfalls that I can. Thank you for the advice.
Here are a few:
- Drug related criminal activity occurring in or around leased premises is cause for immediate eviction. [Missouri Statute 441.740.1]
- Renter's insurance is required
- Include a "Break-Lease clause." [Either Landlord or Tenant may break the lease by providing 60 days written notice and a set fee to the other party.]
- Smoking is prohibited inside any building on the premises.
This isn’t legal advice, but I would include a specific “event of default” provision, jury trial waiver, prohibit all assignments and subleases, and always include an attorney fees provision for the prevailing party. Other than that you can evict a tenant easily if rent is due and owing or the tenant has violated a material lease provision.
I agree with everything Sylvia said.
But I'd add in:
- no sub leasing
- no pets, at least not without permission
- no fixes, painting, curtain rods, etc.without approval
- late fees after 5 days, and $10 per day until paid in full
Sorry, I also include a page that shows estimated costs for items to be replaced/repaired. For example, painting a wall or room; hole in wall or door; replace carpeting due to stain (not groom normal wear and tear).
Gives them something to think about.