A lease, like all contracts, needs to balance covering essential issues without being so long and complex that neither you nor your tenant will want to sign it. It should be written using non-technical language without legalese. If you want to create a new lease or want the one you use to be reviewed, the team at AWB Law can help.
Here are some suggestions on topics that should be covered.
- Tenants’ Names
Every adult living in the unit should be named as a tenant, and they all should sign the lease or rental agreement. Each tenant will be legally responsible for all the agreement’s terms, including paying the rent and properly using the property. You could seek the entire rent from any tenant if the others don’t meet their obligations. If one violates an important lease term, the tenancy for all the tenants could end.
- Occupancy Limits
Clearly state the unit is the residence of the tenants who signed the lease and their minor children – no one else. This enables you to determine who lives in the home and to limit the number of occupants. This language could allow you to evict the tenant(s) for allowing another to move in without your permission.
- Tenancy Term
Do you want a rental agreement or a fixed-term lease? Rental agreements are usually month-to-month and self-renew unless a party terminates the agreement. It should specify:
- The date it begins
- How much notice must the parties give to end the tenancy and change the agreement’s terms
If you want a lease, you need specific start and expiration dates, usually a year.
- Rent
You should have details in the agreement, including:
- The amount
- How the rent will be paid
- When it’s due
- Whether there’s a grace period before rent is considered late
- Whether late fees will apply if payment’s late, and if so, how much
- Fees for checks with insufficient funds
Given the importance of rent, it makes sense to give it some space in your lease or rental agreement.
- Security Deposit
Security deposits, how and why they’re used, are common sources of friction between tenants and property owners. To prevent or limit any future conflicts, clarify the details:
- The amount
- How it will be used or not used (to cover unpaid rent)
- When and how it will be returned
- Whether the tenant will be paid interest earned on the amount, and if so, how much
You can prevent conflicts by having joint inspections at the start and end of the tenancy, with both being video recorded. If there’s clear evidence of problems (or lack of problems), there shouldn’t be conflicts if both parties act in good faith.
- Repairs and Maintenance
To try to prevent your tenant from withholding rent due to alleged habitability issues, clearly describe the parties’ responsibilities for repairs, maintenance, and regular cleaning, including:
- The tenant will keep the unit clean and sanitary
- The tenant will pay for damage due to their abuse or neglect of the unit
- The tenant will alert you of dangerous or defective conditions
- You are responsible for the repair and maintenance of the unit and public areas
- The tenant will not put trash in public areas, block or make them unsafe
- You will provide details on how you want complaints and repair requests communicated to you
The clearer the responsibilities, the harder it is for you and your tenant to claim ignorance of who needs to do what.
- Your Access to Rental Property
To prevent problems with a tenant claiming you’re illegally entering the unit or violating their privacy, spell out your legal right of access and how much notice you’ll provide, given the situation. You have a right to come in and perform maintenance and repairs, but you must give “reasonable” notice (generally at least 24 hours, 48 hours for a move-out inspection requested by the tenant).
- No Illegal Activity
If tenants use your property as a base for illegal acts, it can cause you tremendous grief. Other tenants may feel unsafe, your unit may be damaged by the tenants or the police if they raid it, and you may face civil liability. It may seem obvious you don’t want crimes perpetrated on your property, but make it obvious in the lease or agreement that no illegal acts or disruptive behavior are allowed.
- Pets
If you don’t allow pets, clearly state that. If you do, include any restrictions (like the types of animals, size, or number), and animal waste anywhere on your property will be cleaned up.
- Disclosures
Federal and state laws require you to make numerous disclosures before your tenant moves it. They can include the presence of mold, the use of pesticides, the availability of a registered sex offender database, and shared utilities.
- Other Restrictions
Depending on the circumstances, many other limits or clarifications should be in the lease or agreement concerning:
- Occupancy rules
- Subletting
- Health and safety codes
- Restrictions on at-home businesses
- Parking
- Use of public areas
No matter what kind of property you’re renting or the number of tenants, Anthony Burton can ensure your lease protects your rights and gives your tenants sufficient notice of their obligations. You can also rely on him for advice on how to prevent lease disputes, negotiate solutions if one arises, and represent you in court if the parties can’t reach an agreement.
AWB Law is Here to Help
If you’re a residential landlord with questions or concerns or need legal representation because of a lease dispute or violation, call the legal team at AWB Law at (949) 244-4207 or complete our online contact form today to schedule a consultation.
