What to include in a Lease

Question

I am going to hire a property manager for my house, and I am assuming he has a general list of what is standard.

One of my concerns is smoking and having a quiet tenant. Can I say that there is to be no smoking (inside and out). There will be a gardener and I don't want him to have to clean up cigarette butts from the garden/grass. The other issue is noise. San Jose seems very vague in this respect. Of course, we all want law abiding quiet tenants, but how can I include it in the lease and stay within the law. Am I allowed to say, motorcycles are not permitted? Am I allowed to say any excessive noise (parties, loud garden tools, etc) are restricted from 8 am to midnight? I am thinking that if the gardener has to keep cleaning up the cigarettes, I can justify adding a fee on their rent and pass it onto the gardener. The noise problem, I would like to evict them if there are complaints of constant noise. Would that decrease the number of interested tenants?

Thanks!

Rick H. · Answer

Geez, you don't sound like a landlord. More like an innkeeper. Way to controlling.

You need to know and understand what is appropriate behavior for a tenant and what rights you gave as a landlord to screen for, monitor and enforce.

For starters, smokers are not a protected class of people so you can have a month to month or long term lease that states that smoking in the premises is not permitted as well as vetted during the application process.

My recommendation is to buy 'Fixer' Jay Decima's "Tenants and Toilets" course as well as Mike Cantu's "Rental Property Management" course audio and manual.

This will give you both a better idea of what should be and what should not be your business, as well as excellent guides on screening tenants, contractors and how to operate your cash flow property machine.

Christopher Morin · Answer

I'm not an expert in your state's landlord-tenant law,  but I'm fairly certain you can do all of those things.  I don't permit smoking in any of my units,  and I deny applicants who check the "smoker" box.   I require quiet hours after 10 pm and so do my HOAs, and it's in the lease.   Smokers and loud people are not a protected class.  As for charging them, I bill my tenants for pet waste cleanup when they let their dog deficit in the yard, because it's in my lease.  I assume you could do as well with cigarette butts.

If they break your rules, you are entitled to give them a 7 day correct or quit ( or whatever your state requires) and then evict if they don't.  If they resist, you'd have to be able prove to a judge that they did break your lease.

Your dilemma lies in what you said with "will I have deceased applicants" and the answer is yes.    But probably not much, and not the kind that you're probably looking for anyway.

Janice Viescas · Answer

Good points- Kimberly and Chad-Just a casual drive by would not be interfering. Checking on the property in three months doesn't sound unreasonable either. I would want to ensure that the smoke and CO detectors were functioning so he would get an idea if the house was in good condition. When I start interviewing for PM, I'll be sure to include these rules.

Because the neighborhood is very close knit, I would like the PM introduces himself/herself to the neighbors on each side. I would suggest to the PM that the new tenant do the same. I think it would help in the long run.

I think the longest contract I've had to read through was probably 8-10 pages. It will be interesting to see how long the contract is after all is said and done. Maybe the one that is drawn up will end up being on the higher side after all. I hadn't thought to add the attorney's fee provision. It is good to have that on my list, although I would hope that the PM would have that as a necessity on the contract.

Chad Hale · Answer

Hi Janice,

I agree with Kimberly.  A good property manager will keep an eye on your property.  At a minimum, drive by at least once a month for an external view.  You can get a pretty good sense of what is going on just from that.  An internal inspection once a year to verify properly functioning smoke and CO detectors.  This also allows you to see everything else that is going on inside.  I do a move in inspection which includes pictures.  This is a part of the signed lease.  It is very clear to everyone what the condition of the property was in when the tenant moved in.  Also, agreed a short lease is not sufficient.  My leases are 25-30 pages.  Sounds like a lot but it protects both the tenant and the owner.  I hear zero complaints from tenants when signing.  They actually appreciate a comprehensive lease and knowing exactly what is expected of them and me.

Of course, tenant screening is one if not the most important thing you can do.  This eliminates 90+% of the issues.

@Nicole  In California you better be very careful how you word advertisements.  I would never advertise as no smokers.  I would advertise as no smoking anywhere on the property.  A subtle but very important difference in CA.  This is the information I have received while attending fair housing classes for CA.  I would make it very clear that any smoke damage will result in a loss of deposit and possible further monetary damages as well in addition to possible eviction for breaching the lease.  Of course this is all in the lease too.  In both showing a property and during signing a lease I tell a story or two about the costs to remedy a place with smoke damage.  In short, expensive.

Back at Janice, I agree,  tenants should be able to make a place their home.  This is one of my primary areas of pride.  Providing a clean safe place to call home.  I just make it clear to respect neighbors and treat them as you would want to be treated.  You want to throw a party.  Not a problem.  Just inform the neighbors out of courtesy.   This becomes even more important in multi-family units with closer living situations.

Regarding someone smoking inside when it is prohibited.  One inside inspection would make that clear.  Smoke is very hard to hide.  Knowing your neighbors is always a good way to keep tabs on things too.  I try to get to know the immediate neighbors as opportunities arise.  I ask how they like their new neighbors (my tenants) and just listen.  I give them my contact info and tell them not to hesitate to contact me with any issues.

One other thing to consider is a month to month lease.  Currently, this works well in the bay area.  I like this because if something comes up about a tenant that is not right or correctable, a 30/60 day termination notice can be given without having to wait for a lease to end.  The downside is you could have higher tenant turnover.  But getting new tenants right now is pretty quick.

Regards,

Chad

Kimberly H. · Answer

@Janice Viescas you said your property manager would only be there rarely...that's a problem. You should have a property manager who looks at the property 3 months after a new tenant moves in, and then every 6 months, minimum. That way you know if lease provisions are being followed. Make sure that's in the contract wtih your PM, and even make sure they have to supply like a picture of several rooms to you to prove they were there.

Regarding what should be in the lease, the lease my company uses is a constantly evolving document and is very long. Ask to see the lease and addendums your PM suggests. If it's only like 5 pages in total you may have a problem.

Janice Viescas · Answer

That's a good point. I hadn't thought of that.

Nicole A. · Answer

Damages to the property from smoking would definitely be a reason to pull from the security deposit. Not smoking itself, but if there are burn holes in the floor from cigarettes, smoke damage, etc. That's all beyond normal wear and tear.

Janice Viescas · Answer

The neighbor mentioned that he reported the car and had it towed-- twice. He really does have good intentions. When my Mom lived there, he would do things like take her garbage can back in as soon as the garbage was taken. He has my phone number but has never called to report anything. He along with a few other neighbors work in law enforcement so I am thinking they have a little influence.

Because I live far, most likely I won't be visiting the property often. I thought the security deposit would go more towards bigger damages that go beyond normal wear and tear of the property? and not apply to smoking?

Nicole A. · Answer

@Janice ViescasYou can prohibit smokers because they are not a protected class. You can put an ad up for your rental and say "no smokers" and no one can say that's discrimination. But yes, you're right that a person who said they're nonsmoker or outdoor smoker is hard to ensure they're truly not smoking inside. Just something to keep in mind when you occasionally visit the property and if you need to keep the security deposit.

Also, is this neighbor calling you directly? Or you just mean the neighbor calls the tow company? If they're calling you directly a lot, that may be a boundary you need to set. I have a neighbor of one of my rentals who used to call me over silly complaints and I basically stopped replying to her. I told her she will need to either work it out with her neighbors or call someone else. She once called flipping out that my tree fell on the fence. I assumed she meant her fence. It was my fence. I have no idea why she was flipping out and realized right then I needed to start distancing this woman.

What to include in a Lease

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