1. Preparing the Property for Rent
2. Advertising – What is Legal & Isn’t
3. Screening & Red Flags
4. Showing Property
5. Application & Criteria
6. Processing Applicant
7. Components of a Good Lease
8. Managing the Tenancy
9. Navigating the Move-Out Process
10. Security Deposit – What is Wear & Tear?
Module 3 – Management Cycle
Lesson 7 – Components of a Good Lease
The most important aspect of a good lease is using a current and legal one. Don’t buy from office supply store. I have provided a lease and addendum to use. Check your State or Local County for special ordinances regarding rentals. You may have additional addendum that is required. I have also provided a sample filled in lease. When you create a lease it is a LEGAL document so you want to make sure you fill it out correctly.
The second most important aspect of your lease is you enforcing it. This is where FH is your friend.
For annual leases I always do them less than a year so that gives me the option to not renew the lease. In many States once the lease has gone to 12 months and a day you must provide 60 day notice for tenant to move.
Move in funds should always be guaranteed – Money Order, Cashier’s Check
Do a Move In Report, Take photos and video, Review with Tenant prior to their move in.
Here is a list of some of the addendum that is part of my leases.
- Lead & Booklet (pre 1978 Construction)
- Smoke/Carbon Detectors
- Local Ordinances (such as Noise or Rental Inspection Program)
- Tenant Information – Emergency Contact
- Mold/Mildew (Mold is Gold)
- Renter’s Insurance
- House Rules/Community Rules (not CC&R’s)
- Bed Bug
- Maintenance Instructions/Request Form
- Inventory List for furnished/Semi-furnished homes
Join a Property Management Association to have access to current addendum and changing terms of lease. Checkout Resource section of this course for associations.