When you find the tenant you want, you will enter into a contract, also called the rental agreement. Some people think that only a lease has to be in writing, hut for very good reasons, all contracts should be put in writing. Even a month-to-month rental agreement must be in writing, so that any future disputes concerning the terms of the agreement can be resolved by referring to the contract. You can be sure of one thing: As a landlord, you will have disagreements with tenants.

The full rental contract includes more than the one-page rental agreement, it should be specified at the bottom that the agreement extends to the original application, the statement of condition, and any additional forms¡ªagreements regarding pets and so forth. List all addenda attached to the agreement, and be sure that the tenant receives a copy of all paperwork.

You should make certain that the contract you use conforms with the laws and regulations in your community. Some comments on specific clauses:

1. Identification. Be sure to date the agreement as of the effective date of the contract. Identify owner and tenant, as well as the street address of the property - essential information that is often overlooked.

2. Rent and deposits. The first paragraph specifies that this is a month-to-month contract, and the amount and due date of the rent. The last sentence of this paragraph states that the tenant is responsible for all utilities except as otherwise noted. !f you will pay for water and sewer, for example, write in the specific information in the blank at the end of the paragraph.

3. Required moving notice. This paragraph specifies that the tenant agrees to give adequate notice. Required periods will vary from one state to another. A tenant who moves without providing you with adequate notice is responsible for rent through the notice period, and will have to pay rent unless you find a new tenant before that period expires. The landlord agrees to refund deposits within a specified number of days after the tenant has moved out. This provides you with time to inspect the premises and ensure that all required utilities are paid up (especially those that, if not paid, become your responsibility). Upon inspection¡ªespecially if the tenant has given you problems and has skipped out¡ªyou might find hidden trash, abandoned furniture, or broken fixtures on the premises.

4. The people who will be living at the site. You need to be able to enforce the requirement that only those people that on the agreement have permission to occupy the properly, not only for reasons of space limitation, but also so that you have control. If non-tenants complain about conditions on the properly, you want to be able to respond that you have no agreement with them and that they have no legal tenant rights. You want to restrict your contact and response to only those people with whom you have a rental contract.

5. Other terms. Most of the additional eight clauses and terms listed are self-explanatory, and are included to prevent some conditions from arising and causing you problems with the tenants.

6. Violations. The last paragraph cautions that if any terms of the agreement are violated, the result could he eviction. This section also provides space to list other documents that are pan of the agreement. Write in the names of those documents, making sure that al! of the documents are signed by you and by the tenant. Be sure to include the original rental application.

7. Signatures and your address. You and the tenant must sign the form. A contract does not exist until both; sides sign. You also need to give the tenant a photocopy. Never give an original to the tenant and expect the tenant to make copies. Also be sure your address is filled in so that the tenant knows where to mail the rent.

See the complete real estate forms and rental agreements, go to http://www.buyincomeproperties.com/FreeRealEstateForms.htm

 

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