Most rental agreements differ slightly from each other. Some will have one provision and not another and vice versa. Others leave lots of blank spaces to be filled in by the landlord. Excellent forms are available from Apartment, Rental Owner and Landlord Associations. These forms are updated by attorneys and property management professionals every time a new law is passed by the legislature. Every rental agreement should have certain clauses included in it:
Complete address of the property |
Date of commencement of tenancy |
Name of tenant(s) |
Name of landlord or property manager |
Amount of rent |
When it is due |
Where it is to be paid |
Penalties for not paying rent when due |
Tenant responsibilities for maintaining
the premises |
How the tenancy can be terminated |
Who pays utilities |
How the agreement can be changed |
The forms you use may or may not include the ideas which follow. However, these clauses will serve to let the tenant know what you expect out of him and/or her. It is always better to be clear up front, to “get your ducks in a row,” than it is to wait for something to happen, then try to deal with it.
Pet Agreement
This is probably one of the most important forms you can use, if you allow pets on your property. It spells out in detail what is expected of the tenant. It also adds a deposit or fee for cleanup after the tenant moves out.
You do have the right to forbid or regulate pets on your property, unless the “pets” are assistance animals, such as guide dogs.
Notification Procedures
Tenants need to know in advance how you can legally serve them with any notice regarding defaults of or changes in the rental agreement. Notification procedures are extremely important. If you get them wrong, the tenant is not notified, and you have to start the process all over again.
Spelling out notification procedures in advance does three things. First, it lets the tenant know the rules. Second, it lets him or her know that you know. Third, it gives you guidelines to follow every time you have to notify the tenant for any reason.
No extra bodies
The tenant must understand that only the people listed on the rental agreement are the people who are supposed to be living in the property.
You must also spell out occupancy limits. One person moving in must fill out a rental application, and be replacing someone who is moving out.
No Subleasing
This is part and parcel of the “no extra bodies” clause.
Smoke Detectors
An acknowledgment that the smoke detectors are in good working order is similar to the provision for a statement of condition: it won’t always help, but it lets them know that you know.
Limit on number of vehicles
Not much looks worse than a bunch of broken down cars in front of a house or in a complex’s parking lot. In addition to that, too many vehicles creates hard feelings and tension with other tenants and the non-tenant neighbors.
Tenant repairs
Many landlords tell the tenant to repair anything which would cost less than $25 and to send them a bill. This keeps the landlord from being called for dripping faucets and loose screws.
Some landlords don’t want to leave anything to the tenant, preferring to make sure it is done correctly. The flip side is that tenants who make some of the repairs themselves sometimes take more pride in the property.
Some tenants would like to make repairs, but do not have the skills sufficient to do a good job. You have to find out how capable a tenant is before you turn him or her loose on any repair, even changing fuses, in a unit. Remember, you are ultimately responsible and liable for any repairs made on a property, regardless of who did them.
Maintain the yard
This is especially important for single family rentals for obvious reasons. Another, not so obvious, reason is that a poorly maintained yard is that much harder and more expensive to put back in good shape when the tenant moves out and you have to rerent the house. Find out if your tenant has a lawn mower. If he or she does not, reiterate what is expected and ask how he or she expects to keep the yard in good shape. Chances are between the two of you, you can come up with a workable solution. Just make sure the tenant is involved in the solution.
Things to Remember
A tenant intent upon causing you trouble will do it, no matter what the rental agreement said.
The biggest advantage of spelling out everything in writing, on special notices and forms, if necessary, and going through everything verbally, is that the tenant understands the provisions and knows that you know.
Make certain that your tenant gets a copy of every document and form, is aware of the importance of keeping them, and fully understands the provisions of each. When he calls you with a question covered by a document, you can refer to what he already agreed to and signed. Go over the provisions again, if necessary.
Landlord Q&A
What is the primary use of a security deposit?
pay the last month’s rent
hold the rental until the tenant decides to rent it or not.
ensure the tenant abides by the terms of the lease or rental agreement
collect bounced check bank chargesThe purpose of a security deposit is to insure the tenant’s performance of the terms of the rental agreement, “c.” Many tenants believe that they have paid the last month’s rent with the deposit, but it is our job to disabuse them of that notion.
We can accept a deposit to hold a rental unit, but that is not a security deposit and its purpose is far different than enforcing the terms of a lease. While in extreme situations we can use the security deposit to collect bounced check charges, that would have to come after the tenancy terminates since we have no right to use the security deposit for anything before the tenant moves out.