What’s One Lease Clause That’s Saved You? (Here’s Mine)
Property Manager · Waterville ME · Member since 2020 · 43 posts · 39 votes
What’s One Lease Clause That’s Saved You? (Here’s Mine)
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Property Manager · Lombard, IL · Member since 2013 · 99 posts · 82 votes
10moWhen utilities are included adding a clause about "reasonable usage" and setting a maximum dollar amount that is included depending on the size of the property and # of occupants. If that maximum $$ is exceeded the tenant is responsible for the overage.
Not setting a maximum give tenants free range to do laundry all day for their family and friends. Set the AC at 60 in the summer, heat at 80 in the winter.
20 Replies
- Member since 2025 · 10 posts · 7 votes10mo
I don't have a response for your question but as a new PMIC this helps as I am currently in the process of making our leases and policies. Thank you for this post. If you having any other tips or tricks, Id like to hear them.
- Property Manager · Waterville ME · Member since 2020 · 43 posts · 39 votes10mo
@Ashton Smith we made a lot of changes to our lease over the years and we made it specific to Maine. If you can dm me your email address, I can send you my lease template for you to refer and create one for your state specific as well.
- Property Manager · Lombard, IL · Member since 2013 · 99 posts · 82 votes10mo
When utilities are included adding a clause about "reasonable usage" and setting a maximum dollar amount that is included depending on the size of the property and # of occupants. If that maximum $$ is exceeded the tenant is responsible for the overage.
Not setting a maximum give tenants free range to do laundry all day for their family and friends. Set the AC at 60 in the summer, heat at 80 in the winter.
- Property Manager · Waterville ME · Member since 2020 · 43 posts · 39 votes10mo
@Keith Jablonowski we experienced a similar issue with laundry and we swapped ours out with coin-ops which helped us to reduce these issues and generate some passive income as well.
- Property Manager · Lombard, IL · Member since 2013 · 99 posts · 82 votes10mo
Quote from @Srinivasa Subramanian:
@Keith Jablonowski we experienced a similar issue with laundry and we swapped ours out with coin-ops which helped us to reduce these issues and generate some passive income as well.
Yes, good idea, but it's all car washing, hour long showers, etc. If you don't see a reasonable limit some tenants will always try to take advantage of "free" utilities.
- Property Manager · Waterville ME · Member since 2020 · 43 posts · 39 votes10mo
yes i totally agree @Keith Jablonowski
- 10moKenneth GarrettPro MemberInvestor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
@Ashton Smith
I include a couple of schedules that incorporate rules and regulations as well as settlement charges in the event of damage to the unit or building.
I also include a requirement to obtain and maintain a renters insurance policy. Minimum coverage of $30,000 personal property and $100,000 liability coverage. If I had required this early in my career it would have saved me money with a $150,000 fire damage claim that happened a few years ago.
- MD/DC · Member since 2024 · 1k+ posts · 1k+ votes10mo
A line they initial indicating women's personal products are not to be flushed in the toilet. I know it may seem like they should be flushable they aren't.
- Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes10mo
I include one about emotional support animals that discourages tenants from getting one without going through the proper channels that has been really helpful.
But my favorite says that tenants can break their lease any time if they choose to buy a home for themselves, and agree to have me represent them in the purchase as their buyer's agent. I find that tenants will break the lease without batting an eye anyway, and by asking them to work with me I get the pleasure of helping them find a home as well as a commission check that always more than makes up for any vacancy loss I might incur from them ending their lease early. This year I helped 5 tenants become first-time home buyers which was both super fun and emotionally rewarding, plus added multiple six figures to my bottom line without spending a penny on lead generation or bothering with any marketing. I start talking to tenants about buying a home rather than renting during their application process. Most of my properties are Class A or B and my criteria is such that most tenant applicants are either qualified to purchase a home already or will be soon.
- MD/DC · Member since 2024 · 1k+ posts · 1k+ votes10mo
Quote from @Steve K.:
I include one about emotional support animals that discourages tenants from getting one without going through the proper channels that has been really helpful.
But my favorite says that tenants can break their lease any time if they choose to buy a home for themselves, and agree to have me represent them in the purchase as their buyer's agent. I find that tenants will break the lease without batting an eye anyway, and by asking them to work with me I get the pleasure of helping them find a home as well as a commission check that always more than makes up for any vacancy loss I might incur from them ending their lease early. This year I helped 5 tenants become first-time home buyers which was both super fun and emotionally rewarding, plus added multiple six figures to my bottom line without spending a penny on lead generation or bothering with any marketing. I start talking to tenants about buying a home rather than renting during their application process. Most of my properties are Class A or B and my criteria is such that most tenant applicants are either qualified to purchase a home already or will be soon.
That is brilliant!
- MD/DC · Member since 2024 · 1k+ posts · 1k+ votes10mo
Quote from @Steve K.:
I include one about emotional support animals that discourages tenants from getting one without going through the proper channels that has been really helpful.
But my favorite says that tenants can break their lease any time if they choose to buy a home for themselves, and agree to have me represent them in the purchase as their buyer's agent. I find that tenants will break the lease without batting an eye anyway, and by asking them to work with me I get the pleasure of helping them find a home as well as a commission check that always more than makes up for any vacancy loss I might incur from them ending their lease early. This year I helped 5 tenants become first-time home buyers which was both super fun and emotionally rewarding, plus added multiple six figures to my bottom line without spending a penny on lead generation or bothering with any marketing. I start talking to tenants about buying a home rather than renting during their application process. Most of my properties are Class A or B and my criteria is such that most tenant applicants are either qualified to purchase a home already or will be soon.
What specifically do you include about ESA?
- Real Estate Agent · Member since 2022 · 11 posts · 2 votes10mo
@Steve K. I like this.
- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes10mo
Quote from @Steve K.:
I include one about emotional support animals that discourages tenants from getting one without going through the proper channels that has been really helpful.
But my favorite says that tenants can break their lease any time if they choose to buy a home for themselves, and agree to have me represent them in the purchase as their buyer's agent. I find that tenants will break the lease without batting an eye anyway, and by asking them to work with me I get the pleasure of helping them find a home as well as a commission check that always more than makes up for any vacancy loss I might incur from them ending their lease early. This year I helped 5 tenants become first-time home buyers which was both super fun and emotionally rewarding, plus added multiple six figures to my bottom line without spending a penny on lead generation or bothering with any marketing. I start talking to tenants about buying a home rather than renting during their application process. Most of my properties are Class A or B and my criteria is such that most tenant applicants are either qualified to purchase a home already or will be soon.
I think that works mostly because you talk to them about this option early on and they like you. Making it mandatory in the lease makes me scratch my head, feels like that could be questionable, but you probably did you homework
- Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes10mo
Quote from @Jules Aton:
Quote from @Steve K.:
I include one about emotional support animals that discourages tenants from getting one without going through the proper channels that has been really helpful.
But my favorite says that tenants can break their lease any time if they choose to buy a home for themselves, and agree to have me represent them in the purchase as their buyer's agent. I find that tenants will break the lease without batting an eye anyway, and by asking them to work with me I get the pleasure of helping them find a home as well as a commission check that always more than makes up for any vacancy loss I might incur from them ending their lease early. This year I helped 5 tenants become first-time home buyers which was both super fun and emotionally rewarding, plus added multiple six figures to my bottom line without spending a penny on lead generation or bothering with any marketing. I start talking to tenants about buying a home rather than renting during their application process. Most of my properties are Class A or B and my criteria is such that most tenant applicants are either qualified to purchase a home already or will be soon.
What specifically do you include about ESA?
Emotional Support Animals (ESAs). ESAs are not the same as Service Animals and are not protected under the American Disabilities Act. They are however protected under the Fair Housing Act, Section 5. Failure by Resident to obtain written permission from Manager prior to introducing an ESA is a lease violation. The standard pet fees and any applicable lease violation penalties will apply if Resident(s) are found not to be in compliance with ESA Certification requirements as follows: ESA Certification requires diagnosis from a local health professional. The local health professional must have licensure that allows them to legally write prescriptions (MD, PA, APRN). Master level certifications (LCPC, LCSW) are not legally allowed to write prescriptions and letters from these practitioners will not be accepted. The health professional and the person with the ESA should have an ongoing relationship, not just a one-time assessment for the purpose of obtaining the ESA letter. The ESA letter must be signed, dated, valid for the entire period of the lease agreement, and on the official letterhead of the local health professional. Manager must be able to verify the presence of a disability and the link of the animal to the disability with the local health professional that provided the certification. The nature of the disability does not need to be disclosed. Manager is not automatically required to accept an ESA certification. ESA certifications obtained online are often from scam websites and are not always legitimate. Manager will verify that the source of the ESA letter is legitimate. Legal reasons Manager may deny an ESA, according to the Fair Housing Act Section 5, and as determined at the discretion of Manager, include:
The animal is too large for the accommodation size.
If the building has 4 units or less and the owner lives in one of the units.
If the property is a single family home and the owner owns less than 3 rentals units.
If the animal brings an undue financial hardship to the owner.
If the animal causes damages or harm to others in the building.
- Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes10mo
Tenants are responsible for sewer blockages . I even bring my sewer camera and scope the whole line in front of them .
- Property Manager · Waterville ME · Member since 2020 · 43 posts · 39 votes10mo
@Steve K. that is indeed a great idea. I will definitely incorporate a similar one in our lease as well.
- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes10mo
Adding language to your lease doesn't accomplish anything unless you train your tenants on it, that's why signing a lease with us takes over an hour. We use that opportunity to talk about important issues we often encounter like not paying water bills or letting tall weeds grow on the side of the house. We also doa new home orientation and go over items like how to reset a GFCI, breakers, water main shut off location, how to replace a furnce filter, what the sump pump does, the importance of down spout extensions and why you have to disconnect your garden hose before frost - we have had more than one pipe burst over the years.
Be VERY careful with altering leases. You could be in violation with State law to the point where your entire lease is void. We are currently dealing with the Koble case in Wisconsin. The lease included one of the 10 deadly sins and the landlord had to refund all rents received, pushing him to the brink of bankruptcy.
We use a lease and related doscuments from Wisconsin Legal Blank (in Milwaukee), they have been court tested for decades and get continousley updated. Obvisouly for our State only. I sometimes see sometimes poorly written leases "drafted by attorney" - what you want is a lease that has been tested in court many times.
Thee lease, rules and regs and non-standard lease provisions include a lot of the frequent issues that are in line with the OP. Really valuable over the years have been: pest control is a tenant responsibility, lawn and leaves with a penalty fee if not done, unpaid utilities equal unpaid rents (this is HUGE!) and of course no repairs/alterations.
- Member since 2023 · 59 posts · 34 votes10mo
@Marcus Auerbach, would you mind sharing what exactly your lease says regarding leaves? Leaf removal is covered in my lease, but most of my tenants still fall behind. Maybe I need "stronger" language.
- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes10mo
Quote from @Mila F.:
@Marcus Auerbach, would you mind sharing what exactly your lease says regarding leaves? Leaf removal is covered in my lease, but most of my tenants still fall behind. Maybe I need "stronger" language.
Just that: tenant is responsible to remove the leaves. We have a $100 lawn care fee if grass exceeds 8 inches, also muni fines/fees. It's more about training your tenants. Words in a lease are just much easier to ignore if you are not reinforcing them. We send out an email with tips and tricks to make it easier and then follow up and also do drive bys towards Thanksgiving. Peer pressure from neighbors also works.
Even more important around first frost: shut off exterior water and remove garden hoses.
- 10moCharles ClarkBusiness MemberReal Estate Broker · Milwaukee, WI · Member since 2020 · 306 posts · 209 votes
Totally agree — that clause saves a ton of headaches.
For me, the MVP is the “Access for Repairs & Inspections” clause. It lets me legally enter (with proper notice) to handle maintenance before it turns into a big, expensive problem. A couple of times it helped me catch water leaks early and avoid thousands in damage.
Curious to hear what others rely on — always trying to make my lease tighter and my life easier!
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