Recent statistics show around 36 percent of Americans are renters. As a rental property owner, you must understand the lease agreements and how they work. A lease protects both you as the property owner and the person renting the property.
Investors should customize each lease. Also, be sure to include the necessary clauses and consequences for violations. A poorly worded lease can impact your rental income!
Here's more on the five things you should know about lease agreements as a rental property owner in Folsom, CA.
1. Customize Each Lease
You might want to customize several things in a lease agreement, such as quiet hours or even when rent is due. Putting these things into a lease gives you control as the property owner. These types of stipulations often occur when other tenants complain.
Everything is in writing with a lease. Tenants will know each rule as they are spelled out in the lease you customize for the real estate property.
2. Necessary Clauses
Include what responsibilities the renter is responsible for during the lease terms.
For example, the lease should include payment responsibilities for utilities such as electricity, cable, phone, water, and garbage.
Moreover, identify how long the lease will last. Be sure to stipulate the penalties if the renter breaks the lease.
3. Consequences for Violations
Does the real estate rental property you own include stoves, refrigerators, or even furniture? What happens if something breaks?
Broken items, thanks to your tenants, will affect your rental income. Your tenant should pay when things such as the security system break or holes in the wall. Repairs to kitchens, bathrooms, and even floors can be expensive.
Pets can also do damage.
Putting these costs in writing will help avoid court cases and battling to get your money.
Renters' insurance helps tenants recover costs should a fire or break-in occur.
Smartphones, televisions, computers, and gaming systems are expensive. An insurance policy will help replace them should they become damaged or stolen.
Insurance isn't that expensive. You can often add it to your existing car insurance account.
5. Hire a Professional
To maximize your rental income, hire a professional property management firm.
Experts in property management have ready-to-go lease agreements with all of the necessary clauses and provisions. You won't have to worry about missing anything important.
A property management firm can also protect you against legal troubles. Housing discrimination complaints can tie up resources and affect your rental income and reputation.
Five Things to Know About Lease Agreements
Five things to know about lease agreements in Folsom, CA, include customization and the necessary clauses. Leases should also contain consequences for violations and the need for renters insurance. Moreover, hire a property management firm to take care of any lease agreement to ensure a smooth process.
We can help you with your lease agreements! Our property management firm can create leases to your needs. Contact us today to advise you on what you need as a property investor or landlord.