As a property manager your goal, in dealing with tenants, should be to earn a reputation of being firm but fair. Tenants have a right to be fully informed of their responsibilities. Making sure this is done is the right start to the relationship with your tenants. The ideas listed here should be key points in your lease agreements. They are your foundation for any future legal action that might be necessary.
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Clearly Define Payment Due Dates and Actions Resulting from Late Payment
Make sure a clear definition is made concerning payment due dates. Spell out what happens when payments are late. These things are vital parts of a lease agreement. Clear, complete and concise is what your policy must be. If your policy is to assess a fee for late payments, make sure that is explained, specifically, as applies to each tenant. Make sure you are fully informed, and in compliance, with state regulations that apply to late lease payments and penalty fees.
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Define Clearly Management’s Right of Entry
Your policy on your right of entry into the rental property must be in compliance with relevant state laws. Use the wording from the state law to support your policy in this matter. If the law requires management to give a specific number of hours of notice, before entry is made, ensure your lease agreements state this clearly. You should also include provisions on what constitutes fair notice, in accordance with state laws.
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Clearly Define Items in Leased Properties That DO NOT Belong to Tenants
Clearly and specifically list items that do NOT belong to tenants. Make sure your lease agreement not only lists the items but clearly states none of the listed items can be removed from the property without management present. If your properties are well inventoried, you should already have complete lists. When tenants vacate they should be required to have a checkout, if they wish to have any of their deposit returned. Before any new tenant moves in a complete walk through and physical check off of items on this list must be done. Remedies for the property owner should be defined when listed items are missing at the end of a lease.
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Clearly Define Tenants Responsibilities for Proper Waste Management
Your lease agreement must state what local laws, rules, regulations and standards are required by the area where your leased property is located. The penalty for tenants failing to comply with this subject should be clearly defined, especially if local rules result in the property owner being fined for improper handling of garbage and trash. If local rules require special containers and procedures for handling of recycled materials, these containers should be provided by the property owners and listed in the lease as property NOT belonging to tenants.
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Responsibility of Tenants for Maintenance and Cleanliness of Leased Property
The responsibilities of tenants for minor maintenance and cleanliness should be as important to tenants as it is to property owners. Expressing expectations on standards of cleanliness helps keep a rental property as free from pests as possible. Set specific standards and define, clearly, the consequences for tenants that do not comply with these standards.
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Standards and Restrictions on Pets
If pets are allowed, the type of pet, size of pet, and number of pets allowed should be specifically mentioned in the lease agreement. The more specific the agreement is the more control over the situation you have as a property manager. This includes set rules on use of leashes and where pets may be exercised.
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Requirements for Notice
The lease agreement must clearly state your policy on how many days are required for notice. This should be defined in days, regardless of the number of days you require. The method of notice must also be defined to avoid misunderstandings.
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Proper Use and Maintenance of Permanent Fixtures
The lease agreement should specifically list what fixtures will be maintained by the property owners. This section should also define proper use of those fixtures. The lease should unequivocally state that misuse of listed items transfers the responsibility for maintenance to the tenant.
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Actions and Conditions at the End of a Lease
The lease agreement should clearly specify the actions required of both property management and tenant. If your policy is that the property should be restored to the same condition as existed at the beginning of the lease, your lease agreement should specifically state this condition. Are these actions required at the end of each lease or only upon vacating the property? The more detail that can be given, the more clearly the responsibilities of each party are defined. Consequences of a tenant’s failure to comply, such as loss of deposits, must be clearly defined.
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Requirements and Responsibilities for Deposits
Both parties have responsibilities, under the law, for security deposits. These should be clearly stated in the lease agreement, not just with passing reference to the law. The reasons for a partial or full loss of deposit should be clearly defined. The entire process of how, when and where deposits are repaid must be defined in the lease agreement.
The more clearly and completely these ideas are present in a lease agreement, the stronger your foundation for future actions. Being clear, fair and firm will help ensure your relations with each tenant will be satisfactory for both parties.
