TX Assoc. of Realtors lease - GOOD or BAD?

Question

Hi all, I have decided to rent my current home out once I purchase another. The realtor I am using to find my new home is also going to lease my current home. She sent me the completed lease agreement on the TX Assoc. of Realtors form. In y'alls opinion, is this lease good or does it have holes that could lead to issues? I am trying to decide if I need to draft my own lease or not?

Thank you

Bruce Lynn · Answer

@Cameron Marmon   The TAR lease one could argue is about as good as it gets.  If I remember right about 14 pages vs 8 for the sales contract.  Often when we see a deficiency in the lease we'll update the wording or add another paragraph or tweak.

That said....it's really only as good as the tenant.  You can have the tightest lease in the world and if the tenant wants to move out mid-lease or park 3 cars instead of 2, or get 3 parrots, when the lease says no pets....I think tough to enforce.   My guess if the tenant is paying you $1500/month and on time and they get 3 pets...and you try to evict and they want to fight, most judges will not side with you.    That's the reality.

I've got a friend that uses a two page lease.  Probably wrote it himself.  It's pretty simple.  You pay rent...you take care of the place, if you don't you need to move out.   All are month-to-month.  His thought is...you cause me problems....call too much, bother the neighbors, don't take out the trash, get a big dog, or whatever, he raises the rent the next month, you don't want to pay it, then you get to move out.   Interesting concept and thought process vs. most people.

Cameron Marmon · Answer

Thank you, Bruce. That is definitely an interesting approach haha.

Greg H. · Answer

Kind of.  There is also a TAA lease that can be used if you are a member of the Texas Apartment Association and you do not have to own apartments

The state(Texas Real Estate Commission) does not procure a lease agreement

The general public can do whatever they want to do. They can have a verbal lease or scribble on a napkin

Realtors(not agents) are required to use the TAR lease unless instructed otherwise by their client. Agents who are not Realtors are not required

Cameron Marmon · Answer

Thank you for all the insight folks! Y'all are great.

Jibran Najmi · Answer

@Cameron Marmon

I am not a lawyer, and so the following is my personal opinion.

The TAR lease is a standard lease promulgated through the state.  It is very landlord friendly, and it is widely used.  However if you consult with a real estate lawyer they will (in the interest of being hired) point out specific deficiencies.  They do have some good points, but in the beginning the TAR lease is pretty good.

Interesting note about TX is that only individual landlords (not recommended) and lawyers can draw up custom leases/contracts, otherwise the TAR lease must be used.

The state has a committee that is composed of real estate brokers & lawyers that come together to promulgate the standard contracts and forms used in all real estate transactions. The general public including Realtors are prohibited from using any other contract unless specifically drawn up by their client/client's attorney.

Hope this shed some light!

Cary O. · Answer

Hi @Cameron Marmon,

The TAR lease agreement has worked well for us so far with a few additional items written into the lease agreement. For example, you may want to specify the following:

1) no smoking

2) expected frequency of sprinkler use for the lawn (if applicable)

3) if tenant or landlord will change AC filters and at what frequency

4) any penalties if tenant breaks the lease earlier than the stated contract end date

Add anything else not specified in the lease that you have concerns about or want to clarify.

Andy Webb · Answer

The TAR lease is what we have been using since we are working with a leasing agent.  Some folks say the TAA (Texas Apartment Association) lease is even more landlord friendly.  To use the TAA lease you need to be a member of the Apartment Association of Greater Dallas or Apartment Association of Tarrant County, depending on where your rental is.

Scott MacArthur · Answer

Imo it's a good lease and landlord friendly. I use it for all my Texas rentals.

TX Assoc. of Realtors lease - GOOD or BAD?

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