What will you add to your next lease?

General Landlording & Rental Properties

What will you add to your next lease?

Investor · Cumming, GA · Member since 2016 · 153 posts · 34 votes

What will you add to your next lease? I use a ezLandlord forms which allow you to pick and choose some rules for the property and ensure you are 100% legal for your state (no I don't work for them). They cover a lot of things you may not think of, like waterbeds (do they still make those?), trampolines (liability!), drug trafficking, etc..., but some tenants can be "creative".

So, what will I add to my next lease update? "No trap ranges/trap shooting/gun ranges".

While it was not in my lease, I was able to stop the action. It did fall under nuisance activity, in my mind, but they were also shooting the clays over the neighboring property. Sure, I own the neighboring property, but they are not leasing it, and the were littering it with the orange clays.

So, what will you add to your lease for the next renewal or your next tenant?

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Real Estate Consultant · Brookfield, WI · Member since 2014 · 873 posts · 350 votes

9y

What about renters insurance requirement?

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Gail K.
Augusta, GA · Member since 2014 · 1k+ posts · 1k+ votes
9y
1. Garbage cans must only be at the curbside on trash pickup day (some tenants are too lazy to roll them back to the house after trash pickup).
2. Cars are not to be parked on the front lawn.
Gail
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Christian Bors
Real Estate Agent · Mechanicsburg, PA · Member since 2014 · 529 posts · 217 votes
9y
@Jack Forester I recently added a light bulb addendum. Recently, when the tenant moved out, they took all the dam light bulbs. Now I charge 6$ per missing bulb and my lease says it has to be at least 60w. Some tenants use light bulbs that are 10w. I don't even know how they are able to see!
1 Reply
Jack Forester
OP
Investor · Cumming, GA · Member since 2016 · 153 posts · 34 votes
9y
Assuming you mean 60w equivalent, so they could use a 10w LED (not that they would spend that much on a bulb...)
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Dede Christensen
Property Manager · San Mateo, CA · Member since 2010 · 30 posts · 6 votes
9y
Combine water, gas, electricity bill into rent. Current tenants are long term and have exploited the lease as we wrote it: lease payment if not paid has consequences. Reimbursement of utilities due at billing, no consequences if they don't pay. Now tenants are two months behind in utility reimbursement. No consequences, except my own.
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Jack Forester
OP
Investor · Cumming, GA · Member since 2016 · 153 posts · 34 votes
9y
Originally posted by @Dede Christensen:

Combine water, gas, electricity bill into rent. Current tenants are long term and have exploited the lease as we wrote it: lease payment if not paid has consequences. Reimbursement of utilities due at billing, no consequences if they don't pay. Now tenants are two months behind in utility reimbursement. No consequences, except my own.
Is this a multiunit on one meter? Just curious why you don't disconnect the utilities for failure to pay (similar to what the utility company would do).
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Travis Hughes
Denver, CO · Member since 2016 · 82 posts · 46 votes
9y
@Dede Christensen does your lease have an application of funds clause that specifies that funds received from the tenant will be applied in chronological order to the oldest outstanding charges on their tenant ledger? If so, you would simply apply funds to the utilities bills first, which leaves them delinquent in rent, then you enforce the rent delinquency. If not, you're in the right thread - add it to your leases moving forward.
This is one of the several benefits of working with a professional property manager. We have leases drawn up that tie up all of these loose ends already because we have seen it all.
Another common example related to utilities is something that even real estate agents will commonly miss. We have a condo unit that is in a high rise downtown. When the tenant moved in and signed a lease with a real estate agent that was not a professional property manager, that agent checked the box that "landlord pays water," because at the time there were no submeters and the water was being paid by the HOA. Well the HOA installed meters and now the water is billed directly. Under that lease, the Landlord would be liable for this extra expense. Instead, the lease should read "tenant responsible for water." If the tenant asks why, citing that water is through HOA, you simply say "if the HOA changes it, you would be responsible for the water." Thus, even though the tenant is not out of pocket to pay for water, IF the HOA changes the rules like this, your lease is already in place to have the tenant take over the water.
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Domenick T.
Investor · Springfield , NJ · Member since 2017 · 192 posts · 93 votes
9y
I've added a clause precluding satellite installation. I've heard of this causing leaks in the roof if not done properly. The house is wired for cable and fiber optics so that should cover most prospective tenants.
1 Reply
Dave Van HornPro Member
Fund Manager · Wayne, PA · Member since 2009 · 1k+ posts · 1k+ votes
9y
A "bed bugs" clause.
Podcast Guest on Show #273
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Jeff Sprunger
Lockport , NY · Member since 2014 · 265 posts · 124 votes
9y
-aerial fireworks being shot from the property. no way.
-gas grills at least 10 feet away from the house/garage
-no indoor furniture being used as outdoor furniture
-front porch not to be used as storage area
-fire pits must be 25 feet from any structure and in a manufactured (bought) container approved for fires...you know what I mean!
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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
9y
Is nobody going to comment on the OP's tenants using the backyard as a gun range???
Honestly, just when you think you've seen it all... Thanks for starting this thread, @Jack Forester
[email protected]Podcast Guest on Show #261
1 Reply
Jack Forester
OP
Investor · Cumming, GA · Member since 2016 · 153 posts · 34 votes
9y
Originally posted by @Jeff Sprunger:

-aerial fireworks being shot from the property. no way.
-gas grills at least 10 feet away from the house/garage
-no indoor furniture being used as outdoor furniture
-front porch not to be used as storage area
-fire pits must be 25 feet from any structure and in a manufactured (bought) container approved for fires...you know what I mean!
What about charcoal grills? ;)
0 Reply
Jack Forester
OP
Investor · Cumming, GA · Member since 2016 · 153 posts · 34 votes
9y
Originally posted by @Mindy Jensen:

Is nobody going to comment on the OP's tenants using the backyard as a gun range???
Honestly, just when you think you've seen it all... Thanks for starting this thread, @Jack Forester
I was surprised myself. ;)
1 Reply
Dede Christensen
Property Manager · San Mateo, CA · Member since 2010 · 30 posts · 6 votes
9y
@Travis Hughes Thanks for your reply.
"does your lease have an application of funds clause that specifies that funds received from the tenant will be applied in chronological order to the oldest outstanding charges on their tenant ledger? If so, you would simply apply funds to the utilities bills first, which leaves them delinquent in rent, then you enforce the rent delinquency"..No, I do not have that clause. Thank youQ
1 Reply
Dede Christensen
Property Manager · San Mateo, CA · Member since 2010 · 30 posts · 6 votes
9y
@Jack Forester
"Is this a multiunit on one meter? Just curious why you don't disconnect the utilities for failure to pay (similar to what the utility company would do)"
The house is a single family house. I have to consult with Consumer Protection Agency folks to find out if I can deduct the unpaid utilities from their deposit but I think it is illegal to disconnect the utilities. Sticky legal stuff we are entering into now.
0 Reply
Jack Forester
OP
Investor · Cumming, GA · Member since 2016 · 153 posts · 34 votes
9y
Yeah, I'd require utilities in their own name on next renewal. Any reason they could not have utilities in their name?
0 Reply
Dede Christensen
Property Manager · San Mateo, CA · Member since 2010 · 30 posts · 6 votes
9y
Jack Forester the pool and hot tub, garden and fountains (yes, it's a nice pad) all need water. Hint: if tenant cuts water in half, pool equip stops running, $$$$ garden burns up, and water features stop working. Glad there aren't any koi in water features, they would have been dead by now if these tenants were paying the bills.
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Jack Forester
OP
Investor · Cumming, GA · Member since 2016 · 153 posts · 34 votes
9y
I see your point. We have a property with utilities included. For that property, I think I need to add a clause for billback for excessive use. Does anyone have verbiage on someplace that?
1 Reply
Dede Christensen
Property Manager · San Mateo, CA · Member since 2010 · 30 posts · 6 votes
9y
Here is what I found on lease cap: http://howtorentyourhousenow.com/blog/rental-utility-cap-what-is-it-how-can-it-save-me-money/ "The tenant rents a house for $1,000 inclusive with a $200 cap. The tenant puts a deposit of $1000 when renting the place. This means that the Landlord will pay the monthly utility bills up-to $200. If it goes over $200, the Landlord has the right to keep the overage from the deposit money."
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Dede Christensen
Property Manager · San Mateo, CA · Member since 2010 · 30 posts · 6 votes
9y
Im not an attorney, so I'm not giving legal advice. I may add this: Tenant will set up a separate utility deposit account of x. Any overage above y (utility bill) will be taken from utility account. If you don't want to set up a utility deposit, then put this in the addendum: Resident must make payment in full to the landlord above the capped utility charges prior to the due date listed on each excess usage bill. Failure of the tenant to pay the excess usage bill by due date can result in the termination of tenant's lease with landlord. Tenant must make payment in full to the landlord prior to due date listed on each bill.
0 Reply
Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
9y
Shooting that is a good one. I thought you were supposed to be so far from a house.
Not sure I would write these explicitly in the lease but .......no hanging engines from trees, no fireworks, no grow rooms, no taping things to the ceiling fans, No cigarette butts....
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Michael Henry
Real Estate Consultant · Brookfield, WI · Member since 2014 · 873 posts · 350 votes
9y
What about renters insurance requirement?
4 Reply
Jeff Sprunger
Lockport , NY · Member since 2014 · 265 posts · 124 votes
9y
Ha, I just added the bit about hanging engines from trees. brilliant.
also, I added, Animals/Fish will not be cleaned on the property.
Hunting is huge in my area and you can drive down the road and see Deer hanging from a tree. great! but take it to a buddies house to clean.
0 Reply
Vern M.
Property Manager · Bowie, MD · Member since 2017 · 120 posts · 67 votes
9y
Mold Addendum that states that all moisture related issues must be reported immediately. If it is found that they directly caused the moisture/mold issue, by their action or inaction, then they will be held accountable for the remediation costs.
0 Reply
Vern M.
Property Manager · Bowie, MD · Member since 2017 · 120 posts · 67 votes
9y
@Domenick T. - I would also add a move out charge if they don't removed the satellite disk, and the 14 miles of cable
Domenick T.
0 Reply
Mary Ann Aulbur
Investor · Springfield, MO · Member since 2016 · 39 posts · 11 votes
9y
I would change wording to say animal instead of pet. Also have them sign that they have no animals in their family. If they add any animal, they must notify landlord in writing before not after they are in the unit.
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