Standard Lease Agreements: Why Landlords Should Be Wary
Are you just getting started with owning rental properties in Southern California?
One of the worse things you can do is use a standard lease agreement that you found online because, each state is different, and you cannot use a “one size fits all” approach when it comes to lease agreements.
A standard lease agreement should only be your “starting point” for creating a lease agreement, not the final agreement that you end up giving to your tenants.
In this issue of our San Diego property management tips, we will offer you information on lease agreements, including which terms or clauses you should include, so you are able to have the perfect lease to offer your tenants.
Use Specific Terms When Creating a Lease
During the process of creating a lease for your tenants, or rental list, you want to be as specific as possible when adding terms to your lease including the following:
- Will the lease be for 12 months or month-to-month?
- Start date and end date.
- Names of residents who will be living in the rental.
- When is the rent due? What are the late fees if it’s paid late?
- How should rent be paid?
- Do you have any pet requirements?
Add These Clauses to Your Lease
Every excellent lease should have the following clauses to protect the landlord’s best interests. Some of the clauses you should have in your lease include the following:
- Subleasing – Will you allow your tenants to sublease your single-family home, condo, or townhome?
- Joint & Several Liability – Allows you to go after tenants if they default on their rent payments or fail to fulfill the requirements of the lease.
- Renewal – How and when will the lease be renewed?
- Use of Premises – Define how the property can be used and include specific language for if the property cannot be used for other purposes like an Airbnb or short stay rental property.
Got Lease Questions? Contact Us Today
Do you have questions about creating the perfect lease for your Southern California rental property? Contact Utopia Property Management today by calling us at (858) 598-1111 or connect with us online.
