Things to Consider When Selecting a Lease Agreement

Things to Consider When Selecting a Lease Agreement

The Lease is one of the most important documents when becoming a Landlord. It is the foundation of your business. Choose wisely; do not make your decision entirely about cost. Use the points below to assist you in making a competent decision.

1. Is it legal? Most of the generic lease agreement forms available on the market contain only the bare essentials. Paper forms, such as those that are purchased at an office supply chain, may not have been updated to reflect recent legal changes. Make sure the lease agreement you use is up-to-date and in full compliance with current contract law.

2. Is it applicable in my state? At the state level, laws impacting the landlord-tenant relationship are constantly evolving. Trying to keep up with emerging laws on your own can be overwhelming. If the lease agreement you select does not reflect the latest legislation, you may be out of luck if you ever end up in court. Make sure your lease agreement incorporates the latest state laws and regulations.

3. Is it comprehensive? Most generic lease forms cover the basics, but they do not delve into the kind of details that will define the day-to-day relationship between you and your tenants. Who will changes globes? Who will check the smoke detectors? If the lease agreement you select does not spell out these kinds of details, you can expect the problems to quickly start piling up.

4. Is it informative? Your tenants may not know how best to respond to situations like house fires, burst pipes, or gas leaks. A high-quality lease agreement package will double as a teaching tool, providing simple guidelines outlining the proper response in number of common household crisis situations; a generic lease form can not and will not.

5. Is it professional? The lease package you hand to your new tenants says a lot about who you are and what kind of behavior you expect. If your lease agreement is a slapdash, paragraph-long contract you hastily scrawled on the back of a For Rent flyer, what does that say about the kind of relationship you expect to have with your tenant?

 

On the other hand, if you hand your new tenants a comprehensive, custom lease agreement package complete with a cover sheet and table of contents, you are establishing a tone of professionalism, respect, and decorum that will set the stage for the entire relationship.

Now that you are armed with these guidelines, selecting the right lease should be simple. Remember, just as you would never skimp on the cost of a foundation for a new home, do not put your property and livelihood at risk by building a rental relationship on a substandard lease. That is one mistake landlords and property managers simply cannot afford to make...