Author: Satria Ahong

The Importance of Leases for Investment Property

A lease protects by the landlord, owner of the property, and the tenant. While laws differ in every state, there are fundamental best practices when securing a tenant and executing a rental property lease agreement. Follow these recommendations from the legal experts to ensure your lease contains the necessary clauses to protect you, the tenant and the integrity of the property in question.

One of the recommended first steps in securing a quality tenant for your rental property is having prospective tenants complete a thorough rental application. This should include an authorization for a credit check. Confirm current and previous employment as well as current income. This should be verified by a recent pay stub, bank statement or directly from the employer. Past rental history contact information as well as personal recommendations should be included on the application. Contact information for personal references should also be included. Once an application is completed and verified, the tenant may them be asked to execute a lease.

Provided it is legal in the state of the property, consider adding clauses to the lease for pets, roommates and long term visitors. The permissible circumstances surrounding each of these should be spelled out in the lease. The duration or length of the lease, date on which the monthly rent payments are due, late fees, security deposit terms and responsibilities of the tenant should be included in the lease.  Consider taking photos of the condition of the property prior to occupancy and having the incoming tenant initial the photos so there will be no discrepancy at the termination of the lease.

Plan to respond promptly to any inquiries from the tenant with regards to repairs once they have taken occupancy. After the lease has been executed, consider welcoming your tenant to their new property by taking advantage of the savings offered by Groupon coupons and offering them a gift card from Tractor Supply.  If logistics and timing permit, plan to be on site the day the tenant is moving in to the rental property. This will solidify the goodwill to be exercised by both parties during the duration of the lease.… Read More