What should you put on a Lease?

Question

So I'm about to make make a lease with my property manager, this is my first time, and I'm confused to what to add to the lease.

What should I add if the tenant damages the property or if they don't pay the rent? What has worked for you?

Nathan Gesner · Answer

The fact that you are asking this question even though you have a property manager is very concerning. A good property manager will explain how their services work and they would have already answered your question.

Do you need to look for a more professional manager?You can start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. Regardless of how you find them, try to interview at least three managers1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!

Bob Collett · Answer

Your property manager will have a lease.

Bob Collett · Answer

You mentioned that you have a property manager. Is this correct?  If so, your property manager will have a lease that has been fine tuned over the years. My suggestion is to read the standard lease that your PM uses, and discuss your lease concerns with the PM. You could never think of all the “prohibitions” yourself unless you have had dozens or hundreds of tenants. The tenants “teach” us over time by their behavior, which kind of restrictions should be added.

For example... not only no smoking, but no BBQ grills on porch or deck or within 10 feet of any structure, no swimming pools or wading pools of any kind, no car maintenance on the property including oil changes, no vehicles of any kind may be on property with current license plate, if you allow pets... no vicious breeds, no trampolines, no fire pits, no use of indoor fireplaces, no candles; the list goes on and on.

Bob Collett

Collett Property Management

Drew Sygit · Answer

Why does everyone want to "reinvent the wheel"?

As Bob already stated, review your PMC's lease and go from there.

Jon Kelly · Answer

@Fahadbin Alam You can add anything you want in the lease as long as it is legal. Your property manager will have a lease. If they do not have a lease, then run far away from them.

Sit down with your property manager and review their lease line by line. Explain any concerns you have with them (e.g. tenants smoking inside). I would hope they have experience in dealing with that. I would also research standard inclusions / exclusions by state

Domenick T. · Answer

Your property manager hopefully has a good NJ-specific lease but make sure it includes a couple of key things like late fees are "Additional Rent" and you have the "right of re-entry."  These are specifics that a judge will look for when filing for an eviction in NJ.  Without these specific words your case could be thrown out.  I have much more info on writing leases if you are interested.  Just message me.

Fahadbin Alam · Answer

As the owner should make any special request, for example I don’t want cigarettes to be smoked inside the property.

What should you put on a Lease?

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