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Property Management – Sherman Oaks – Leases

What Should Private Landlords Include In A House Lease Agreement?

A house lease agreement is a contract between a private landlord and a tenant that covers renting out a home or other type of property. It should be a written agreement. A house lease agreement is a legally binding contract and it is important that you as the private landlord include everything you can in the agreement that relates to the tenant’s use of your property.

If you are writing the agreement yourself it can sometimes be a bit overwhelming because you need to strike a balance so that it is comprehensive but not overly cumbersome and is easily understood by the tenant. It’s better to be in plain English rather than “legalise” so nothing is misunderstood.

When you are drawing up an agreement, there are a few basic requirements:-

* where the property is located;

* what the property consists of;

* your personal details as the private landlord;

* details of the tenant;

* how much rent is going to be charged;

* when the rent is due

* the security deposit;

* if you allow pets, any pet deposits.

It is important to note that unless laws in your state say otherwise, any deposits cannot be more than the monthly rent. Some of the other things that need to be included related to the rent are – how many days can pass before the rent is considered late, how much you are going to charge the tenant for late fees?

These fees need to be worked out based on the laws in your state and or any local laws and have to be fair.

The next thing that is important to include in the agreement is what the tenant is paying for, and what you are going to cover. For example, things like utilities, the phone, and cable should be the sole responsibilities of the tenant, and this should be clearly stated in the lease agreement. You also need to make sure that the tenant has accounts with the relevant utility companies so that utility companies are charging the tenant, not you.

Another important part is the length of the agreement. This can be a tricky subject, and there are many different options. For private landlords that prefer long=term tenants, a one year agreement is a good choice for many reasons. It ensures that the tenant is willing to occupy the residence for at least a year, for one. However there are some drawbacks as well. One of them is that once the agreement is signed, you can’t make any changes or adjustments for a whole year.

One the other hand, while a short-term agreement gives you more leeway, your tenants may be short-term, meaning you will have to rent it out more often.

The other item that is important is terms of vacancy. Usually, a regular house lease agreement of a year or more requires the tenant give a thirty-day notice of vacancy. Again, this has some advantages and some disadvantages. The advantage is that you get advanced notice that your tenant plans to leave, but again, this gives them a full month to leave. You also have to set a renewal date for the lease agreement, normally this will be one year from the date the agreement is signed.

There are many more things that can and should be included in a house lease agreement, much more than can be covered here. There are duties that you are going to be performing above and beyond what is required by law. There are responsibilities that you will be taking care of, and what the tenant is responsible for.

Any special conditions and or restrictions for use of the property or for operating any of the assets included in the lease should be included in the house lease agreement, e.g. dishwasher, fire or stove, heating system, air-conditioning, hot water system.

If you need a sample lease agreement for a basic understanding, there are many websites with general examples of lease agreements, that can be adapted to your own personal requirements.

If you would rather not prepare the house lease agreement yourself you can get an attorney to prepare a house lease agreement for you but choose one that specialises in residential leases.

Time and money spent on your house lease agreement is well worth it, it’s your protection as a private landlord, surprisingly enough not everyone will treat your property the way you would.

By Steve W Barker

Since 1946 the Carnahan name has had a reputation for honest and ethical Real Estate Property Management services in the San Fernando Valley, Santa Clarita Valley, Burbank/Glendale, Los Angeles, Westside and Conejo Valley areas.

The reason for our success is helping owners like you when they need it. Below is a partial list of property management services we provide to help you protect your real estate investment.