Can
I Get That In Writing?!
By
Anesia
Springborn
The
Landloard System by Anesia
In this day and age, I know someone who
is still using a verbal agreement in place of a written lease agreement. Can
you believe it? He's been a landlord for at least 20 years and has a lot of
battle scars to prove it. This is quite unusual and not recommended to say
the least.
What's more common, though, is the
landlord who has a lease agreement and nothing else. This is better, but it
still leaves the landlord highly susceptible to problems, precious cash flow
is sacrificed, and a rental business with just a lease agreement takes
significantly more time to run.
Documentation, in the form of good
landlord forms, provides a reference point for everyone - property owner,
property manager, applicant, and tenant. A lease agreement is a good start,
but you need more. Supplement your lease agreement with a set of house
rules. These are rules that specify expectations and consequences above and
beyond what a standard lease agreement will include.
You also need a move in move out
checklist. This form documents the condition and cleanliness of the unit at
the time of move in and at move out. The form is completed by the tenant
within 7 days of moving in. The property manager pulls it out when
inspecting the unit just after the tenant moves out. Security deposit
deductions will be based on what this form says.
At minimum, you will also need a series
of letters and notices that will be used throughout a tenancy. These are
separate from the lease agreement and serve to communicate several things:
-
The lease agreement will be ending
soon
-
The lease agreement needs to be
renewed
-
There’s been a violation of the lease
agreement
-
The tenant needs to move out by a
certain date
-
A unit is opening up and you’re
looking for referrals
-
You’ve noticed maintenance that needs
to be completed by the tenant
-
The rent is late
-
The rent will be increasing
-
Most everything you communicate
should be put into writing
If you're operating with a verbal
understanding, just a lease agreement, or fear that you don't have the right
notices and paperwork to be compliant with the law, you must get that behind
you! Your tenants are like ticking time bombs! Start documenting everything
that is agreed to, discussed, or warned. Find a good set of landlord forms
and keep copies of everything in a tenant file. Your local apartment
association probably offers a free lease agreement and several other forms
that have been written to reflect the laws in your area.
Treat yourself to better sleep at night
and prevent the battle scars you hear about from other landlords who are not
following this advice!
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About the author
This article has been written by Anesia Springborn, real estate
investor and creator of The Landlord System. Anesia teaches her
students how to leverage time and money to grown their passive
income stream. She may be reached by visiting
www.TheLandlordSystem.com
More Articles by Anesia
Springborn
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