The purpose of this post is to share some of the contents of my contract with everyone else. Over the years, I have come to realize that standard rental contracts REALLY suck. I've used two of the most popular contracts. I just got burned super hard because my contract didn't have any verbiage about entry - I couldn't go in my unit to perform repairs that the tenant was withholding rent for.
Here's some of the basics of what is in my contracts. I won't share the entire contract because I think everyone should tailor their own contracts to fit their business needs. Also, it's 10,000 words LOL.
Also, run any contract you write by your attorney before using it. It's good practice and it'll pay off in the long run. Also, I'm not a legal expert, so I may have omitted important points (perhaps someone here can point out the weaknesses?) I have yet to run this by my attorney. Some of the stuff I include may not be legal.
Also, this post by BP helped motivate me to write my own lease. https://www.biggerpockets.com/renewsblog/2015/10/1...
I have at least a paragraph for each number listed below.
1) description/definition of landlord, tenant and property
2) rent payment instructions (i accept online payment & venmo). late charges
3) security deposit
4) term of the lease. I also included a section that allows tenants to opt into a month-to-month agreement for a 10% rent increase. a tenant can't switch to month-to-month mid-lease.
5) Utilities
6) name all occupants
7) prohibitions, some are trampolines, grills, swimming pools, swings, play structures, weights, gym equipment
8) smoking rules
9) quiet enjoyment
10) fines and penalties
11) alterations/repairs
12) acceptance of premises condition
13) care cleaning and maintenance instructions. agreement that i will do repairs and bill the tenant for the repairs. I will also clean up anything left outside the units (multifamily) and send the tenants a bill
14) failure to keep maintenance appointments - I will bill the tenants
15) (I added this several times throughout the lease) If I don't like the way you care for your residence, I will serve you a 60 day notice to vacate instead of offering a lease renewal.
16) landscaping rules
17) smoke detectors/CO detectors
18) I require renters insurance (this is a new policy, but I think renters insurance is worth it)
19) Waiver/Breach
20) RULES FOR ENTRY!!! (I got burned on this one. contracts should have it.)
21) rules for subletting - I allow it under some circumstances, and for a hefty fee :)
22) Rules for breaking lease - I allow it under some circumstances, and for a hefty fee :)
23) Breach of contract
24) sale of property
25) megan's law info
26) lead
27) asbestos
28) Pets & pet rent
29) Tenant caused billings - failure to keep appointments, etc etc
30) Pests - I don't provide pest control unless required by law. (bedbugs)
31) appliances - no warranty by me
32) a few pages about mildew. this is another big expense of mine.
33) safety - tenant to notify me immediately of any safety hazards, uneven sidewalk, smoke detectors, fire extinguishers, locks/window locks not working, non-working lights, etc. The last thing you want is for one of your units to be robbed when you didn't have working locks in the unit. You will get reamed by the courts, and potentially say bye-bye to your investments.
34) extended absense/abandonment
35) damage done by trespassers - I have spent a lot of money unnecessarily because I didn't include this in my lease.
36) care of roof - NO SATELLITES.
37) improvements become property of landlord
38) owner held harmless
39) if lease starts on 3/1/16, and I can't deliver unit by 3/1/16, the lease allows me a 30 day period to correct this problem.
40) signs - for sale, property management, for rent, etc
41) instructions on how to communicate with landlord (in writing by certified mail with signature receipt)
42) no business allowed on the property (day care or any other business)
43) i don't pay for plumbing stoppages after the 1st clog.
44) what happens if the tenant signs a lease sight unseen (no refunds)
45) credit report clause
46) attorneys fees agreement
Well, that pretty much does it!
