Protect your property and your tenant: Key Details to add in your Lease Agreement

Every landlord needs a well-drafted lease agreement. 

A clear lease agreement defines a landlord-tenant relationship. It also protects you from any unexpected liabilities. 

Having a comprehensive lease agreement is important as it will prevent any confusion and troubles along the way.  

Some landlords may just go to the internet and download a templated and standard lease agreement. While this may make drafting a lease agreement easier, it doesn’t provide you with all the protection you need.

 

What is a Lease Agreement?

A lease agreement is a contract between the landlord and the tenant. 

This is where the landlord outlines the terms and conditions for leasing their property to the tenant. 

It normally includes the name of the landlord and the tenant, the property, term or duration of the lease, the rental fee, security deposit, condition of the property, the right to inspections, property maintenance, occupants in the property and lease termination.

 

What are the key elements you can add to your lease agreement?

Pets

Most tenants have a pet.  

⅔ of the population at least owns a pet or two. When you interview your tenant for the screening process, you have to always ask if they have one. 

Taking care of pets is okay, as long as it is written in your lease agreement. Include clauses that protect you from any damage that the pet may cause. 

Also, include an unauthorized pet clause wherein if you found out that they have an unauthorized pet in the property,  you can impose a fine and add inspection fee. 

 

Let tenants know that inspection is essential to ensure the preservation of the property. Additional inspection is necessary to make sure that the unauthorized pet did not create any damage to the property.

 

Waiver of Subrogation

Most landlords may not be familiar with this. 

A waiver of subrogation is a type of protection for property owners from covering any liabilities from the tenant’s insurance company.

If your tenant gets injured in your property, like slipping down the stairs or in the bathroom, even if it was their mistake and doesn’t go after the landlord, their insurance can take care of it as long as they permit them to. 

Having a waiver of subrogation disallows the tenants from turning over their rights to their insurance company to sue or file a claim to the landlords.

Make sure to read and research about having a waiver of subrogation, understand it and include it to your lease agreement. If you have a property manager, ask about it and how it can protect you as a landlord.

 

Access to Property

You should make this very clear to your tenants. Some tenants may find excuses to not let you in and access your property. 

In your lease agreement, make sure that you include this and have a specific timeframe on when you will be going to the property. 

 

Provide a 24-hour notice on when you will be visiting the property so your tenants know when you will be coming and they can be prepared. Make sure to have a clear timeframe on when you want to enter your property.

Whether you have to go there for a random check or do an inspection, always let them know and give them notice as part of your lease agreement. 

 

Lease Renewals

This is a very important part of your lease agreement as it can affect your income. When the tenant’s lease is about to end, you want to get them into another lease. 

Ideally, as a landlord, you want them to get an annual lease instead of just having a month-to-month lease.

Doing this can save you from dealing with all the works involved in re-renting your property and having vacancy time which means loss of income. Provide your tenants with the benefits of renewing their lease early. 

Let them know that renewing early can keep their current rental fee. 

 

Unlike when they wait for the lease to end and sign a new one, the rental fee can be higher as per market comparison. Most likely your tenant would like to keep their current rental fee and will agree to get an early renewal. 

 

Benefits of having a Property Management Company

You may realize that being a landlord has difficult tasks to complete. 

There are many things to accomplish and the documents you have to keep. Having a skilled property manager at your side helps you handle these tasks to make your life easier. 

A property management company can assist you in creating a comprehensive lease agreement that protects you, your property, and your tenant.  

Your property manager will review it to make sure that all the terms and conditions of the lease agreement are within the law. They also speak to the tenants on your behalf to explain the details of the lease agreement. 

 

Want to make sure that your rental lease agreement is rock solid? 

Give Green Ocean Property Management a call. 

Our Property Managers can help you create a flawless lease agreement. 

Work with us in making sure that your lease agreement is comprehensive and fair. It should protect you, your property and your most valued partner, tenant. 

We also have a legal expert to review the lease agreement for you. Have a great lease agreement that ensures a good, solid, long-term relationship with your tenants.

Call us or email us now.

 

Reach us at hello@greenoceanpm.com or call 617-487-4868. You may also visit our office at 268 Centre St Newton MA 02458.