Rental application forms and lease agreements

[Kyle Rice]

I'm a new landlord trying to figure out how I'm doing applications and lease agreements. I'm also trying to decide what to allow and not allow. I know this is a loaded question but how do guys do it? Do you do online apps? Where do you find forms or do you make your own?

[Tom Goans]

The laws in each state vary. Become familiar with the laws of your state as they apply to tenant and landlord rights. Violate a law and you may face large fines and damages awarded to the tenant. Many times, states post a guideline of the tenant/landlord rights and laws on the Internet.

Winston brought up an extremely great point. Get a copy of the state approved forms for licensed real estate agents and property managers.

Then, review the form, make notes of what additional issues you feel you need to address in your agreement, and then have an attorney review and prepare the final form for use for your business.

Andrea also made a very good point. Legal people and many legal forms are in a different language. Judges frown on this. Make sure your lease and all applicable forms are in 6-grade level English. Judges want every party to be able to understand the agreement.

One other word of caution, judges also frown upon one-sided agreements, especially those that overly protect the landlord, ignore the tenant's rights, and are drawn up by the landlord. Three strikes.

Your tenants are not in the real estate business. Ask yourself, do you understand the entire agreement and would you agree to the terms.

The following paragraph is part of all my contracts. Right above the Tenant's or Purchaser's signature line I have a in bold the following:

1. You are legally bound by this document. Do not sign this Agreement before you read it carefully.
2. Before signing, you may take a copy of these documents to review and/or consult an attorney.
3. Additional provisions or changes may be made in the Agreement if agreed to in writing by all parties to this Agreement.
4. You are entitled to an exact copy of the agreement you sign. Keep it in a safe place.
5. By signing you acknowledge receipt of a copy of this Agreement which was properly completed and which was read before execution.

I also attach a very detailed room-by-room inspection report that is filled out prior to execution of the lease. The lease states on the first page the tenant has inspected the property and accepts the property AS-IS. I NEVER agree to make any repairs or changes prior to the execution of the lease. I do my best to avoid any misunderstandings. Even if repairs and changes are listed in the lease, there is room for misunderstandings. I want the tenants happy at all times.

Happy tenants are good paying tenants that will take better care of the property. Everybody wins.