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Protect Your Assets With A Great Lease Agreement

A lease is a lot like the rules to a game.

The key to getting everyone to follow the rules is to make sure that they are stated at the beginning, in writing and signed off on. A property management company does not have anything to enforce if there is no lease agreement. And same applies to you, the rental property investor.

The lease agreement helps the property management company and tenants understand what is expected of them as outlined below with some tips and insight from Barker Realty.

Key Components of a Lease

There are several things that a property management company needs to include in the lease to ensure it is strong and enforceable.

  • The name of the landlord and tenant.
  • The property address
  • The terms of the rental payments (ie: when is rent to be paid, how much is rent, what’s included in rent, late payment policy, etc)
  • Lease term: When it starts and when it ends
  • Information about the security
  • Whether pets are allowed
  • Right of Entry: When can the landlord enter?

It is a good idea for a property manager to include a clause about subletting. Some tenants will want to sublet. However, you have to decide whether you will allow this. If you allow subletting, then the new tenant should have to go through the same approval process.

You will also need to let the tenant know how much notice is required to move out of the apartment when the lease expires. The typical length of time is requiring a 60-day notice. Keep in mind that if you do not include this in the clause, then you may lose one month of rent. You will not be able to get a new tenant until the lease expires.

Be careful about copying the template of other leases. This can be convenient, but it is important to note that laws can vary from state to state. That is why you do not want to use a California template if you live in Texas.

If you already have a lease agreement, then it is a good idea to double-check it. It is not too late to make the necessary changes. Make sure that all of the aforementioned items have been addressed properly and it’s never a bad idea to have an attorney review to make sure it’s buttoned up and fair to all parties involved in signing.

Taking the right steps will ensure that your lease protects your tenant, you and the property. Barker Realty has worked over our 30+ years of experience to develop a strong and enforceable lease. Contact us today for more information on our property managers in Raleigh for professional and reliable services.

"Let each of you look not only to his own interests,

but also to the interests of others..."

Phil. 2:4