It’s not easy being a landlord in today’s rental market. Landlords must deal with a plethora of occurrences ranging from maintenance issues, keeping up with ever changing property taxes, and dealing with monthly rent collection duties. As a landlord, you have worked hard to obtain your rental portfolio and want to provide great homes to trustworthy renters. However, once you believe that you have found the perfect tenants, you must provide them with a comprehensive lease agreement that should also aim to protect you as the landlord and property owner. Failing to put the necessary information in the lease agreement could open you up to an endless amount of tenant issues to deal with and, in extreme cases, possible legal repercussions.

The Basic Requirements

There are plenty of general lease agreements that can be found on the internet, but the problem with these forms is that most of them are a “one-size-fits-all” contract, and you should be cautious when using them. However, most of these forms do contain pertinent information that can act as a guideline for your personalized lease agreement. The absolute best route to take when managing a rental property is to hire an experienced property management company to manage the rental for you, as these professionals are literally trained to protect the landlord and manage tenants living in rental properties. With that stated, some information your lease agreement should definitely have includes the following:

• Legal names of all adult tenants – it’s crucial to have every person’s legal name on the lease or it could lead to legal problems down the road. Make sure that the contract is signed by each adult (using only their legal names) named on the lease. This will make them legally responsible for the entire rent if one person moves out.

• Occupancy limits – this portion of the lease agreement states who is allowed to live in the rental property (including children) and how many tenants are allowed in the rental unit at one time. This should be limited to the signees on the lease. It’s also important to clearly state on the lease agreement that no subletting is allowed, and that anyone living in the rental property needs to be listed on the lease agreement contract.

• Terms of rental period – you can define whether this is a month to month, six- month, or yearly lease agreement. You may also want to add auto-renewal language into this section. It’s also a good idea to list a 30 to 60-day notice to vacate stipulation within the lease agreement as well. This protects you (as the landlord) from tenants randomly picking up and moving out without giving you the proper prior notice to attempt to find new tenants.

• Rent – this is an integral part of the lease if you want your rent paid on time. The lease agreement should state the amount of rent, its due date, and when it’s considered late. You should also define the late fees, acceptable forms of payments, and where to pay.

• Security deposits – this section lists the security deposit amount, what it can be applied towards, and if there is a non-refundable portion. You may also list pet deposit amounts in this section. Check your state’s laws regarding what you can legally charge or withhold when it comes to security amounts.

• Pets – if you’ve given permission for your tenant to have a pet, list the animal’s information in this portion and include any pet deposit paid. Include restrictions for other animals such as the type of breed, size, and the number of animals allowed.

• Maintenance and repairs – your tenant needs to know what items they are responsible for, such as landscaping, keeping the property clean, or alerting you to items in disrepair promptly. Include language regarding damage or alterations to the property.

• Right to entry – clearly state how much notice you will be giving your tenant when entering the property. Most states require 24 hours’ notice, but it’s a good idea to check your local laws. If you have an agreement to enter the outside premises to do yard work, list it here as well.

• Criminal activity – though it may seem obvious, you should notify your tenant that no criminal activity will be allowed on the premises. This includes drug dealing or using, gambling, or harassing other tenants.

Define Special Requirements

Now that you’ve got the basics down, you may be wondering what else you would possibly need to add to the lease agreement. This is where you’ll want to think about any extraordinary circumstances that you or your tenant might have. Some examples of this may include:

• Business operations are not allowed on premises
• Restrict length of stay for overnight house guests
• Giving access to outbuildings on the property
• Number of vehicles permitted in driveway

It’s important to consider what issues may come up and to address them in your lease. For instance, what if your tenant started a childcare business in your rental? If you don’t stipulate that the rental unit will be used for residential purposes only, you may have legal trouble on your hands when attempting to put a stop to such an occurrence. This is your opportunity to define within the legal limits of your state how the rental will be used.

Payment of Utilities

Your tenant needs to know what utility bills they are responsible for and who they need to pay for said utilities. In some states, landlords are allowed to collect money for sanitation services or water. Sometimes it can be difficult getting tenants to pay utilities, making it important to clearly guideline within the lease agreement what will happen if your tenant has the utilities shut off for non-payment or for tampering with equipment. Furthermore, as the landlord you never want to be held responsible for extra utility bills your tenant(s) should be paying, so make sure to give this area the attention it deserves within any lease agreement you present to a prospective tenant.

Violation of Lease Agreement

Your tenant needs to understand the consequences of breaking the provisions of their lease agreement. Whether it’s termination of their lease or a per diem charge for a returned check, put it in writing. Clear communication with your renter will contribute to a healthy landlord-tenant relationship. The more details and information included within the lease agreement to clearly define these consequences, the better.

Property Management Companies Know Best

There are many aspects to consider when creating a lease agreement for your new tenant. You may know that having the right lease agreement is imperative, but finding the time to do the legal research may prove more difficult than you originally anticipated. Hiring an experienced property management company to handle the details for you will give you peace of mind. Property managers can even control the daily operations for you, including rent collection, grounds maintenance, and dispute resolution, providing you with the freedom to enjoy your property investment peacefully.

Professional property management companies can provide you with most updated lease agreements customized to your particular business needs. Our Las Vegas property management team at Black & Cherry understands the potential consequences of having an incomplete lease agreement within the Las Vegas and Henderson areas and will help guide you through the process of providing your tenant with a thorough contract which protects your rights as a landlord.