Extra Lease Addendums to Add?

Question

Hello BiggerPockets Community!

What extra addendums do you add to your leases?

I'm finalizing my first lease in NC and I want to ensure I'm adding in all the applicable addendums. I've already added that the rental insurance is required and that I must be added as an additional insured, the renter will not have access to the attic or crawl space, and that I can have access to the property for inspection with 48 hours notice. Anything else I should add?

Thanks Everyone!!!

Nathan Gesner · Answer

It's hard to know what you should add without knowing what's already in there. Smoking? Joint and Several Liability? Who handles landscaping or snow removal? How do you deal with pests? What's your late fee policy? Early termination? Adding another tenant? Adding a pet? Pet visitations? Security deposit disposition after termination?

Becca F. · Answer

@Bryce Jamison

Congratulations on your first property and lease! My leases in California and Indiana for single family homes both state that tenant is responsible for plumbing damages unless caused by defective plumbing parts or tree roots invading sewer lines. As far as plumbing damage if the plumber determines it was the tenant putting paper towels etc in the toilet or chicken bones in the garbage disposal, the tenant pays for the damage. Tenant notifies landlord of any damage or repairs needed. I also state: no smoking inside the house, late fees for rent ($50 per month), $45 fee for insufficient funds, lease automatically renews for 60 days at 125% of the rent unless landlord or tenant gives notice to terminate the agreement, overnight guests limited to 5 consecutive days, no nails and scotch tape on the walls to hang items on the wall and use of Command hooks/tape for damage free hanging, no antennas and satellite dishes shall be erected, tenants responsible for landscraping (mowing the lawn), snow removal in driveways and walkway to front door, and cleaning dryer vent.

Tenant pays all utilities (water, electricity) and it's in their name. I have to pay for the sewer/trash/recycling fees I added this fee onto the base rent - the city would not let me transfer it the tenant's name. The names of the occupants are stated on the lease and one month's security deposit. My property manager wrote up the lease since he's an experienced landlord in Indiana. I'm pretty flexible with my tenants - if they wanted a dog, I would charge additional pet rent ($35 a month for each small dog cat, $45 for each large dog). I did not do a refundable pet deposit - some people do both a deposit and pet rent or just one. The pet rent nets me more money than a $200 refundable pet deposit. Also sometimes it's difficult to determine if the tenant or pet caused the damage so any damage is covered by the security deposit. I had this happen with the first tenant, she asked if she could adopt a pet - the dog was fine but she nailed things on the walls. She patched the holes in the walls up but I charged her painting the entire wall and repairing deep gouge in the wall. Indiana is landlord friendly so tenants are very reasonable.

For my SFH rental in California (San Francisco, a tenant friendly city), I also state: late charge of $25 and $20 per day (not to exceed $200 per month), no candles, no fragrance plug-ins, no illegal drug use, no smoking and no vaping of any products inside the house (I'm okay with weed use in the back yard or outside since marijuana is legal here), tenant mops up standing water, oil spills in driveway, etc. Landlord is not responsible for ants, fleas, etc. My security deposit is $500 for current tenant with roommate situation. I personally know the tenant so I'm charging a little less. This tenant is the Master Tenant. The Master Tenant collects security deposits and rent payments from the other tenants and they split the total utilities and internet among themselves - there's no way to individually meter each person's electricity/gas and water use. I currently pay for trash/recycling/compost fees. The Master Tenant Addendum is in place because SFHs aren't under rent control (so far). If it's determined to be a multi-unit, for example, people that have ADUs in the backyard or a lower level rented out as a studio, the property could be subject to rent control depending on the city. I also charge a garage use fee $100 per garage (two car garage) so the roommates (or any additional cars) have to park on the street.

If I were renting to a single tenant (a couple or family), my security deposit would be more than $500. The rents here are very high so charging them one month's rent for security deposit would be asking someone to come up with over $10,000 first months rent (about $5600) and security deposit at one time is excessive to me. I'd probably do $1000 or $2000 security deposit for a couple/family.  I just started renting this house so I wrote this lease with a template my investor friend used in consultation with her attorneys. I'm self-managing this property right now.

Sorry for the long response. I hope this helps.

Bryce Jamison · Answer

Thanks for the advise!

A lot of what you mentioned is built into my lease template but a few of these weren't. I'll be adding addendums for how to handle new tenants moving in (current tenant moving in a romantic partner) and who is responsible for pest infestations. I also really like the auto renew clause! I'll be sure to add one of those in.