I wish I would have put that on the lease...
Rental Property Investor · VT · Member since 2017 · 233 posts · 147 votes
I wish I would have put that on the lease...
Most Popular Reply
Jennifer T.Pro Member
Investor · New Orleans, LA · Member since 2014 · 1k+ posts · 944 votes"Tenant cannot park a vehicle on the front lawn."
You'd think that is just common sense, obvious, and would not need to be included in a lease. You would be wrong, lol. As was I (at the time).
I also started capitalizing and bolding the area in my lease that basically says, "Security deposit cannot be used as last month's rent."
It's always been in my leases, but have had multiple arguments with tenants (of course, always the bad ones) that no...really, really...they can't. Apparently I'm "outrageous" because "all the other landlords" let people do that.
56 Replies
- Rental Property Investor · Red Bank, NJ · Member since 2018 · 20 posts · 8 votes8y
That may be partially true with m2m leases, but the Big problem with them is that tenants can move out any time including your good tenants. Re Renting in Nov-Mar is very difficult in my area in the northeast as no one here wants to move during the holidays and winter in the cold. Vacancy and lower rents are the result.
I always try to get the leases to end in spring/early summer making re rental much easier, and there are usually more tenants (at a higher rent) to choose from.
Also M2M in NJ does not really protect you much from a problem tenant. They get the same "rights" to eviction as a standard 1 year lease.
The best clause that has helped me get rid of a "holdover" tenancy was the 1 1/2 times rent increase at the end of the lease for "holdover" tenants. Holdover tenants have not made a new lease with the landlord and are able to stay in the property (in NJ) but at the new 1 1/2 times rate.
- Member since 2016 · 13k+ posts · 12k+ votes8y
The term of a lease is irrelevant, tenants move whenever they choose regardless of a term lease. With a term lease however they rarely give any notice which results in a vacancy and usually non payment of their last months rent. With M2M tenants are extremely forthcoming with their plans and will usually give you plenty of notice when they can. Try M2M next time and you will experience the advantages. Simply set them as auto renew unless one party decides to give notice (60 days) to terminate.
M2M definatly has advantages over the false perception that a term lease controls when tenants may choose to move.
Additionally tenants prefer to move early spring and summer so, again, a term lease only has a perceived advantage.
Proper management avoids vacancies not a tenants lease. I am in the frozen north, have only ever used M2M leases with exact same conditions as you, and have never had any issues.
Personally I believe it is more efficient being in control of your business than having tenants in control.
- Rental Property Investor · Red Bank, NJ · Member since 2018 · 20 posts · 8 votes8y
Here is what i use:
In the event Tenant remains in the property after the expiration of the term of this Lease
without having executed a new written Lease acceptable to both Landlord and Tenant, Landlord shall have the right to(1) treat Tenant as a Tenant who has not removed at the end of his term,andbe entitled to all the remedies against Tenant provided by law or,in the alternative,(2)consider
such holding-over a tenancy from month to month at a monthly rent equal to 150% of the rent
payable for the month immediately preceding the first day of such hold-over term,subject to all the terms and conditions of this Lease,except duration. Landlord's right to elect to treat Tenant as a hold-over Tenant or otherwise shall not be effected by acceptance of rent in any amount (including any amount less than the amount provided in this paragraph). - Rental Property Investor · Red Bank, NJ · Member since 2018 · 20 posts · 8 votes8y
I get your point and experience, it sounds like you are dealing more with apts that SF Homes?
I agree that yearly lease helps only with "Honest" tenants who abide by the rules.
I've had a case where a problem but "honest payer" tenant did follow the lease and pay late fees and also move out when he wanted to stay because of the 11/2 times holdover clause.
I've also had many yearly's leave early. most do try to use the security for the last months rent.
if a yearly saves me 1/2 the time from re renting in winter than its worth it to me.
- Member since 2016 · 13k+ posts · 12k+ votes8y
"equal to 150% of the rent"
The purpose being to discourage tenants from going M2M. Landlords believe term leases control tenants.
"if a yearly saves me 1/2 the time"....but it doesn't......you have absolutely no idea if a term lease saves you anything. Tenants leave when they choose not when a landlord chooses therefor a lease has no influence over their leaving....they prefer to leave spring/summer.
It really does not matter much with only a few rentals but as you grow in numbers and you have a higher number of undesirable tenant relationships or inherited tenants the advantages of M2M become very obvious.
You are correct I do not invest in SFHs. Cash flow is not worth my time.
- Rental Property Investor · Red Bank, NJ · Member since 2018 · 20 posts · 8 votes8y
Originally posted by @Thomas S.:
"equal to 150% of the rent"
The purpose being to discourage tenants from going M2M. Landlords believe term leases control tenants.
Nope the purpose is to get a problem tenant out when he pays rent but is still a problem. (late payer, police being called to property, property damage, stressful tenant with constant issues)
In Nj Non payment of rent is about the only "easy" way to evict.
- Rental Property Investor · Red Bank, NJ · Member since 2018 · 20 posts · 8 votes8y
If i do get into apt rentals i will definitely go M2M. You make perfect sense and yes i agree many tenants will move at anytime.
But for SFH rental, it's more of a pain to move a family and a whole house of their stuff as well as jacking kids out of school. The times this happens most is loss of employment and they are forced to move. Otherwise over the last 35 years the yearlys have worked pretty well.
- Rental Property Investor · Seattle, WA · Member since 2017 · 383 posts · 248 votes8y
No portable dishwashers/washing machines + adding appliances without landlord's consent. That one was in my lease and came in handy!
- Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes8y
-A few favorites....
-Landlord reserves the right to hire a recurring Professional Cleaning/Maid Service if Tenant(s) are not keeping the Premises in clean/sanitary order at Landlord’s own judgment. This expense will be the responsibility of the Tenant(s).
-The Lease Agreement may be terminated by the Landlord in the event of the sale of the premises, or in the event the premises must be materially altered or razed, by giving Tenants thirty (30) day’s written notice.
-No smoking, to include cigarettes, pipes, cigars, or any other tobacco smoking material, and/or vapor like products is allowed within the structure of the building; including the rental unit, basement, or garage, either by the Tenants or their guests. Tenants agree to pay any expenses associated with the violation of this paragraph, which could include, but not limited to, replacement of drywall, repainting, and new carpet and floor installation in the entire building.
-Tenant shall refrain from disposing of things such as diapers, sanitary napkins, tampons, paper towels, wads of toilet paper, newspaper, children’s toys, matches, Q-tips, balls of hair, grease, oil, table scraps, clothing, rags, sand, dirt, or rocks into drains. Tenant shall refrain from disposing of things such as grease, bones, coffee grounds, orange peels, celery, corn husks, asparagus, egg shells, fruit pits, potato peels, or the like down the garbage disposal in kitchen. Tenant agrees to pay for cleaning the drains of any and all stoppages, except incidents created by roots or structural defects. Landlord does not guarantee the installation of a garbage disposal.
- Loveland, CO · Member since 2010 · 110 posts · 194 votes8y
Someone above suggested using your state's Realtor's Association approved lease. That's what I used in Texas but I retyped it into my computer so I could easily add things I wanted and make the changes when the laws changed. I didn't want the word Realtor on my paperwork. I had the "no unregistered vehicles" in mine pretty early but I also added "no boats, power or otherwise, or motorhomes may be stored or parked at the property for more than 24 hours at a time".
I also had a section that the renter had to sign agreeing to all of the terms, conditions and FEES listed on my repairs addendum. The prices are what I used on the last lease I did in 1997. The tenant had to initial next to each item on the addendum that everything was in order:
1. Each door has a doorstop to prevent damage to walls. Cost to replace missing doorstop $5.00 each
2. There are no holes caused by doorknobs adjacent to any door. Cost to repair holes: $75.00 each
3. All interior and exterior lights operate. Cost to replace any light bulb: $15.00 each
4. The yard is clear of any animal waste: Cost to remove animal waste: $15:00 per scoop
5 The yard is newly mowed and the shrubs trimmed: Cost to mow the lawn $75.00
You kind of get the idea. I once had a couple complain after moving out about the poop scooping fee. I said we could take it up with Judge Yeoman and ask how much he might charge if he came over and did it. Then they complained about the yard mowing fee because there were people that mowed lawns in their neighborhood for only $30.00. I told them they should have hired one of them and that those people did it that cheap because they knew they had a steady clientele that they mowed every week. I didn't have such a contract, but I had to load up my mower and gas and drive it over to their house to do what they should have, and had already agreed to have done.
- Rental Property Investor · VT · Member since 2017 · 233 posts · 147 votes8y
@Christen G. Good one, I'm adding that!
- 8yNed J.Pro MemberInvestor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
One of the things you will notice with the longer term leases...... the landlord has to cite a TON of stuff that the tenant will be held responsible for before the landlord can say "I'm done with all the crap you are doing to/in my property, you're out"....while a M2M, you can terminate them at any time for just about anything by not renewing the lease that next month...problem solved.
Driving on the lawn and tearing it up........ well that's not in your 2 years lease, so I cant really do anything but ask you to stop......same if you are hanging laundry on pipes......using your BBQ inside.....,now if you are M2M, I can give you notice that I'm not renewing next month....bye bye....
Tenant will move when they want to/need to....and trying to hold them responsible for the additional months left on their lease is WAY harder than people think. Having a lease that says they are still responsible for the rent is one thing...getting the actual $$ is a whole different thing. Its a psychological "fear" for tenants to break the lease, but many aren't that scared of it since they know its hard to actually enforce
My eviction lawyer told me to do all M2M....and I'm in CA.....so that's what I do, since he will be the one defending me in court
- 8yMindy JensenPro MemberBiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
Please be aware that simply putting clauses in the lease does not make them legal or enforceable. Always check with your state's landlord tenant laws to be sure you are in compliance.
- 8yRonald RohdePro MemberAttorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
Such an entertaining thread. I would sign any of these leases and then try to define "unregistered" or balls of hair? Can I dispose of clumps of hair?
- Tacoma, WA · Member since 2018 · 30 posts · 16 votes8y
And @Ronald Rohde wins the thread with his succinct illustration of why you need a good attorney on your team! ;)
- Las Vegas, NV · Member since 2017 · 89 posts · 52 votes8yIn reading through a lot of these, many are great ideas. Most of what I've read is already in the lease agreement included when you purchase Landlording on Auto Pilot by Mike Butler. I used his word document, and added/modified it using the example Lease included with The Book On Managing Rental Property, and our local landlord/tenant law for things like time lines for entry, etc. I put all the documents from both downloads into a three ring binder & spent an hour reading it to my tenant. By the end he was almost falling asleep and just signed everything. I keep a copy & left one with him for reference. One thing that impressed him was my thoroughness compared to his last management company. I told him we take our business seriously & want you to know what we expect of you & what you can expect from us.
- 8yCory BinsfieldPro MemberFinancial Advisor · Duluth, MN · Member since 2012 · 157 posts · 194 votes
I've added a bed bugs clause to my lease. Basically, tenants are responsible for bed bug remediation since it can cost a few thousand for treatment from a pest control company. I had a 1br apartment in a six unit building and it cost $1,200.00.
Another clause I like to add is move out time. My lease requires they move out by 12 noon at the end of the lease period. Most leases end at midnight and I find this annoying since some tenants will stay till 11:59 PM and then you can't verify if they actually moved out by the end of the term (unless you like visiting a property at midnight).
If they are not out by 12 noon, I charge a $250 holdover fee. This has dramatically altered by move out process since all tenants are in a hurry to move out. It also allows my crew to get in early and clean/check for damages before someone moves in the next day.
- Rental Property Investor · VT · Member since 2017 · 233 posts · 147 votes8y
@Steve C. My lease is based on The Book on Managing Rental Properties as well, I just changed time requirements as per Vermont law/requirements. It already contained 95% of this stuff, worth the cost of the book already, considering it's loaded with other info. too (and other documents) -- I think my tenant will be surprised by my thoroughness also, considering their last lease was very literally a two page document that solely stated Names, rent amount, term, and signatures -- no mention of her dog, no mention of whom is responsible for what damages/maintenance, or even snow, lawn, trash removal, no mention of time frames (48hr notice of entry, 14 day pay or quit, etc) it was crazy after reading those books and seeing example leases.
- Atlanta, GA · Member since 2017 · 19 posts · 3 votes8y
Very good question. Most resent reaeration of my lease (after a very, very bad tenant and months in court) now has:
- Very detailed explanation of the security deposits and my ability to use it at any time if repair was due to the negligence of the tenant and that tenant has to restore this deposit back to the full amount within 10 days.
- Alteration and improvements – we had to clarify that under no circumstances we don’t pay for it, even if we approve it.
- Added a part about Mechanic’s liens
- Unlawful use, use of drugs.
- Full liability and indemnification.
- In case of holdover rent doubles.
- Electronic agreement and communication/electronic copy and signature paragraph.
Somehow my rental agreement went from 5 pages to 15… its funny what bad tenants can teach you.
- Rental Property Investor · Dallas, TX · Member since 2015 · 503 posts · 504 votes8y
Originally posted by @Cory Binsfield:
I've added a bed bugs clause to my lease. Basically, tenants are responsible for bed bug remediation since it can cost a few thousand for treatment from a pest control company. I had a 1br apartment in a six unit building and it cost $1,200.00.
Bed bugs were discussed in another thread recently....my concern with putting too much burden on the tenant is that it might simply discourage them from ever reporting the problem.
- Las Vegas, NV · Member since 2017 · 89 posts · 52 votes8yMegan Phillips I totally agree! So much good info in there. I swear the biggest lack of effort on thorough leases oddly comes from "professional" property managers with 2 page leases! Personally managing our own dots & crosses a lot of I's & T's. If you haven't picked up Heather & Brandon Turner's book on Managing Rental Property, there are a lot of good forms in there as well (rules & regulations, charge amount estimates for damage, etc) my lease is a modified compilation of the two & together, I feel it's fairly solid as they both cover things the other does not. Best of luck with this one!
- Investor · Temple, TX · Member since 2015 · 112 posts · 80 votes8y
Great thread, thank you to all contributors. I also have a clause about drain stoppages. If the plumber determines that the stoppage is from damage to the pipes (breaks, leaks, roots, etc), I pay for repairs. If the plumber determines that the stoppage is caused by objects clogging the drain (hair, paper, sanitary products, anything a tenant can put in there), the tenant pays for the repair.
I also have a zero tolerance for smoking. $25 per cigarette butt found on the property.
Another interesting one relevant to Texas and our wild weather: If any property damage occurs due to a tenant leaving a window open during inclement weather (rain, hail, tornadoes, etc), the tenant must pay to repair the damages.
- Realtor · Los Angeles, CA · Member since 2016 · 73 posts · 39 votes8y
Awesome thread. I've added to the subletting section no AIRBNB, Vacation Rental, or Peerspace.
In Los Angeles I had a tenant rent their unit on AIRBNB and the visitors were taking my other tenants mail/packages. Plus the other tenants felt unsafe with random people walking around the property.
- Hollywood, FL · Member since 2016 · 11 posts · 8 votes8y
-No smoking, to include cigarettes, pipes, cigars, or any other tobacco smoking material, and/or vapor like products is allowed within the structure of the building; including the rental unit, basement, or garage, either by the Tenants or their guests. Tenants agree to pay any expenses associated with the violation of this paragraph, which could include, but not limited to, replacement of drywall, repainting, and new carpet and floor installation in the entire building.
This! In my leases, I have a $400 fee to remove the slightest smell of smoke.
I will add the toilet clause. I did have one tenant who moved in 2 months prior and then calls me and says the faucet is leaking really bad with heavy flow and would like for me to come look at it.
Me: Was the faucet leaking when we did the walk through? Everything is brand new so not sure how that has happened and I'm sure if it was leaking so bad during the walk through, you would have addressed it.
Tenant: No, you're right. I'll take care of it. Sorry for bothering you.
Seriously, can't stand tenants sometimes.
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