Individual investors make up 74.4% of rental properties. While this is a great investment opportunity, many people who are beginners in real estate may not know the steps to take as they find renters for their rental property.
One important step is learning how to make a lease agreement for rental property. This is an important legal document that can protect you from issues in the future.
Do you want to learn more about what you should include in your rental property lease agreement? Keep reading this article for the top five tips to include in your lease and rental agreement.
1. Rules of Renting
The first thing you must include in your rental agreement is your rules of the tenancy. First, you should list all of the things that you do not allow on the premises of your rental property. This can include illegal activities, smoking, pets, and more.
Next, you must include information about what happens if the tenant breaks these rules. Stating that you are free to terminate the agreement in these situations will be beneficial if you ever have to evict a tenant.
2. What is Included in Your Rental
You also need to include details about what is included in the rental property. What is included in the rent? Are the tenants responsible for their own utilities, like gas and water?
Similarly, you must include whether or not your rental property is furnished. If you are providing any type of furniture or appliance, make sure you list them in the rental agreement.
Finally, include other amenities that are included for your renters.
3. Occupant Details
Next, you must include details about all of the occupants for your rental property. Include the name and contact information for everyone living in the rental property.
You also must be sure to have your lease agreement signed by your occupants. This signature will prevent you from being held responsible for damage caused by bad tenants.
4. Rent Details
While you may have reliable tenants to work with, you need to be prepared in the event that your tenant causes damage to your property or is late with their rent payments.
In your rental agreement, state how much the rent is per month, how your tenant can pay rent, information about late fees, and more.
Similarly, you should include information about your security deposit and other fees that you may charge in the future.
5. Repair and Maintenance Policies
Finally, you must include information about repair and maintenance policies. In this section of your rental lease agreement, make it clear that your tenants are responsible to maintain their own space and pay for damages they cause.
If there are any defective conditions in your property, your tenants must file a maintenance request from your property manager.
Lastly, make sure you are clear as to whether or not your tenants can make alterations to your property, like painting the walls or hanging their belongings.
Need Help With a Rental Property Lease Agreement?
Becoming a landlord can be a rewarding investment, but it requires a lot of preparation to prevent future issues. By following these steps, you will have a simple lease agreement for rental property to protect yourself legally.
Do you need help with a rental property lease agreement in Raleigh, North Carolina? Raleigh Property Management can help! Our team provides resources for property owners and investors to make property management simple and effective.
Contact our team to learn more about our services and get a free rental analysis!