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Updated about 10 years ago on . Most recent reply

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Steve Rozenberg
  • Specialist
  • Houston, TX
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Reviewing the Lease

Steve Rozenberg
  • Specialist
  • Houston, TX
Posted

How do you review your lease with the tenant?

  • Steve Rozenberg
  • Most Popular Reply

    Account Closed
    • Retired Landlord/Author
    • Commerce Township, MI
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    Account Closed
    • Retired Landlord/Author
    • Commerce Township, MI
    Replied

    When I select a Tenant and call them to let them know that they were chosen, I instruct them to do the following:

    PRIOR TO SIGNING THE LEASE AGREEMENT:

    • They have to have all utilities put in their name either on the day the lease is to be signed, or before.  (e.g. gas and lights) If not I don't rent to them.
    • I tell them that it will take at least 20 minutes to go over the lease with them at the signing of the lease, so be prepared to spend a little time there.

    THE DAY WE SIGN THE LEASE AGREEMENT

    • I call the gas company and the light company  once again to verify that the utilities have been placed in the tenants name. (This is a twice verification process) 
    • I print out a copy of the entire lease agreement, e.g., I have one for me and one for the Tenant to keep for their records.
    • It takes about 20 minutes to go over the Lease Agreement as my Lease Agreement is quite long.  (Why not?  When I purchase a home the paperwork I sign takes hours. So why should a bank expect and demand every "I" dotted and every "T" crossed and not me?)  My lease covers everything known to mankind.  (well almost)
    • I go over what I expect from them, and what they can expect from me. 
    • I have before pictures, with the date on them, usually a few days before we sign the lease, and always have that days Newspaper somewhere in the photo to depict that the day I took these photo's are actually current.
    • I have the tenants  sign a page in the lease agreement, on both of our copies, that says, the house looks exactly like the photos in their Lease Agreement and in mine.
    • I go over in great detail the difference between a normal repair request and an emergency.
    • I tell them that for a normal repair request, it will be taken care of in the order it is received.
    • For emergency repairs, it will be taken care of immediately, if possible, but definitely within  24 hours  QUARANTEED!

    DO NOT HAND OVER THE KEYS UNTIL YOU RECEIVE THE FOLLOWING:

    • Verification has been made that the utilities have been placed in their names.
    • The FULL SECURITY DEPOSIT AND MOVE IN FEES ARE PAID IN FULL and in
      • Cash or Cashiers Check and put in my little hands TODAY as we sign the lease!
      • (If you allow them to pay with a normal check, they could put a stop payment on it as soon as they move in.
      • The same thing for a money order.
    • That all copies, theirs and mine, of the Lease Agreement are signed by all of us.  (NOT THE OCCUPANTS)
    • Once all this is done, I now  pronounce us Landlord and Tenant, give them the  ring, (key ring with keys of course) and our marriage (contract) has been completed, and most times I even get a hug at this time. 
    • The Move in Time is a Happy Time. .

    TO KEEP YOUR TENANTS LONG TERM, AND STILL HAPPY PLEASE READ THE FOLLOWING:

                                       THE TENANT PHASE BY Nancy Neville

    THE FIRST MONTH (THE HAPPY PHASE)

    During the first month of a rental period, the tenant is happy. They wanted the home, they got the home and everything is fine. THEY ARE VERY HAPPY! You spent a lot of time at the signing of the lease telling them what you expect from them and what they can expect from you. They seemed to be happy and they nodded in understanding.

    THE SECOND MONTH

    Somehow during the Second Month, when the newness wears off and the happiness falls into a routine, the new Tenants become confused. They seem to forget what the rules are and when rent is due (even though they have a written lease agreement to refer to). If they are one of the few tenants who do not get confused during this time, this means they have jumped from the Second Month phase into the TESTING PHASE which may cause a few problems, but I will talk about that in a few minutes.

    To help the Tenants not be confused during the 2ND MONTH PHASE, I always bill my Tenants their rent 10 days before it is due. It's during the 2ND MONTH PHASE that I will answer any questions they may have and not make them put it in writing.

    TESTING PHASE (May begin as early as 2nd month):

    The TESTING PHASE, is a very crucial phase. Whether the tenants and you get along is determined during the TESTING PHASE. More Tenants than not like to Test the Landlord. If they had gotten away with it with their previous landlord, chances are, they feel, they can get away with it with you.... so they will try. They will pay their rent when they want to, putting you last and live the way they want to regardless of your rules.

    It is very important to nip this in the bud during the TESTING PHASE,because if you allow the tenant to get away with things such as paying their rent when they want to and doing what they want, then chances are you will never proceed past the TESTING PHASE.

    THE THIRD MONTH:

    If you make it to the third month, that is good. But it is also very crucial during this time as well to make sure the tenant stays on course. The Third Month, strengthens your position as to who runs what. During this time you want to make sure that the tenant keeps paying their rent on time and keeps obeying the rules. One little falter on your part can throw the tenant back into the TESTING PHASE. It is very important that you guide them during this time as to what you expect and want. And important that you gain their trust and respect during this time.

    THE FOURTH MONTH - THE COMFORT PHASE:

    The Fourth Month through the first year, is THE COMFORT PHASE: the tenant becomes accustomed to your rules and is starting to feel comfortable. If you have handled everything correctly, being strong when needed to be, and doing evictions when needed, the Tenant will feel secure because the Tenant will know what is expected of them and will feel comfortable and will want to stay. (Tenants usually feel comfortable with stability and sameness).

    AFTER THE FIRST YEAR:

    After the first year, the COMFORT PHASE, becomes more stable and each year thereafter. It's just a matter of keeping your Tenant happy, yet, making sure they don't slip into the Testing Phase from time to time. Even old time Tenants will want to go to the Testing Phase if they see their Landlord falter, get too over generous or too understanding.

    When that happens the Tenant's stability changes because the rules are changing throwing the tenant into the Testing Phase again, so we don't ever want to falter but always stay strong and in control.

    THE MOVING PHASE:

    During the moving phase the Tenant, no matter how many years they have been with you, seems to forget everything again. They become babies and they revert back to the TESTING PHASE. Once again they never refer to the Lease and must depend on you for answers.

    During the MOVING PHASE, the Tenant can change personalities quickly. It's like they drank a potion that changed them from Jekell into Hyde. They become this fiend, this villain that could destroy you and is probably the hardest phase of all the phases.

    It is during the MOVING PHASE, that you must be cool, have all your wits about you and be prepared, yet still be cordial so as not to enraged the monster that seems to be lurking in your Tenant during the MOVING PHASE (as there is NO ANTIDOTE to calm the savage beast once it takes form). If by chance this happens, it is best to not confront the beast but to keep your distance until the courts can set it free!

    With time everything will fall into place as long as you treat Landlording as a business!

    Rent On!

    Nancy Neville

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