Whether you are a new landlord or an experienced landlord in the Waco, TX area, drafting a comprehensive lease agreement is crucial to your overall success. Failure to do so can result in many disputes and losses long-term, affecting your overall profits. These five items are essential to put within any lease so that all parties understand what the expectations are when entering a landlord-tenant relationship:
1.) Name the parties involved and the lease duration.
Both the landlord and tenant should be named formally within the lease agreement, including the physical address of the property, the formal mailing address, and any other means of communication or contact (such as an email address, website, etc.). The lease term’s start and end dates should be clearly stated on the lease agreement (listing an exact start and end day, month, and year).
2.) State your rent collection policy.
One of the most important aspects of being a landlord is collecting rent, which is why your rent collection policy must be listed in detail. State the total and monthly rent amounts. List specific due dates, as well as grace period information and late fees. You should also list a clear course of action should the tenant fail to pay.
3.) Include all other details.
This could include a security deposit amount (as well as the terms for it to be returned), a pet policy clause, a renters insurance policy requirement, and acceptable alterations that can be made to the property (such as hanging pictures on the wall or painting the rooms an approved color). You should also list your right to entry, detailing the notice you will give and the purpose of entering (i.e.: scheduled maintenance).
4.) Be clear about the responsibilities associated with each party.
Doing so will help mitigate potential issues. For example, you can list that it is the responsibility of the tenant to keep the premises clean and sanitary and to inform you of any dangerous or defective conditions. You can then state that you, as the landlord, will make sure the property adheres to local health and safety requirements and will respond to reasonable maintenance requests.
5.) Make sure both parties sign.
For your rental agreement to be valid and hold up in court (if necessary), it must contain your signature, as well as the tenant’s signature. Tenants must be over the age of 18 and should date the lease agreement next to their signature as well. You and the tenant can also place your initials next to any changes or specific terms you want to highlight (such as the need for insurance or a pet clause).
If you are a landlord in the Waco, TX area, we can help you draft the perfect rental agreement. With over 30 years of expertise, creating leases that protect landlords and tenants alike is our specialty. Real Property Management Talent is locally owned and operated, offering comprehensive services to help your investment continue to grow. Contact us today to learn more: 254-651-0576!
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