What's the best or most useful clause in your lease?

[Will Gaston]

All:

I'm about to begin the annual update on my lease for my student rental properties. What started out as 4 pages in 2006 is currently 17 pages long. And I expect it to fill 1/2 of the Library of Congress by the time I retire. 

It is extremely rare that students aren't willing to sign a lease because of a clause or section they disagree with. They either want the house or they don't. So I continue to add items in an addendum every single year. These may only be applicable to student rentals, but here are the 3 favorites from my lease:

• -The deposit on the property is 1/2 refundable and 1/2 non-refundable

I use the 1/2 non-refundable portion to pay for the lawn care as students aren't going to maintain the lawn. This system has worked well because the tenants see the value on why I'm doing it AND it doesn't affect the monthly cost of their rent. I've gotten close to zero pushback on this since I started doing it and it has been a huge home run.

• -Tenants must "opt in" and pay if they want pest control

Almost all of the tenants decide against opting in and paying for pest control and that's exactly what I want. We provide quarterly pest control to all properties regardless. If the tenants do happen to opt-in and pay for pest control, we will take the money and provide it monthly instead of quarterly. The purpose of this is not to increase revenue, but to dismiss the complaint that the landlord is responsible for any insect that ever comes in the house. "You had the chance to pay for pest control and you chose not to" is our stock response with pest complaints.

• -"As-Is" Addendum

This particular addendum has been invaluable for students, especially as most of them have never lived outside of a dorm. It specifically states the house is rented in "As-Is" condition and that landlord will make mechanical/safety repairs only and has discretion on any and all other repairs or improvements. It very clearly spells out: "What you see is what you get." This is probably the most important item I've added to my original lease.

It's been my experience that the lease is the most powerful management tool a landlord has and I'm looking for additional suggestions so that I can add to it. 

What are some of your favorite lease clauses?

[Linda S.]

@Will Gaston,

My absolute favorite is offering rent at a discount if paid by the first.   People go from being relaxed, to making sure it's paid by the first to get the discount... yes, it's slightly cheaper, but even habitually late tenants have been converted to paying by the first!   I tell everyone-- structure it so everyone wins!!!