Creating a Lease Agreement: Tips for New Landlords
If you have decided to rent your property for the first time, you should know that creating a lease is very important to protect yourself and the property that is being leased. The following tips will help you create a strong, straightforward lease agreement if you are new to being a landlord.
List the Items in the Rental
One thing you need to do when you create the lease is make a list of all of the items in the rental unit. Include furniture, appliances, fixtures, accessories, and anything of value. Add this to the lease agreement, so the renter has to sign that these items are in the unit and must stay with the unit when the renter leaves. This protects your belongings because if something is missing when the lease is up, you have legal proof that the items were there, so you can recover your money.
Be Careful with Dates
When you create the lease agreement, pay special attention to the dates you put in the lease. Clearly state the effective date of the lease agreement and the end date of the lease agreement. You may want to add a provision to the lease agreement about what happens once the lease is up. For example, can the renter lease the space again by signing a new lease agreement? What happens if they hasn’t left when the lease is over? The agreement should cover these stipulations.
Hire a Real Estate Lawyer
Creating a lease is not something you want to do on your own, or you run the risk of losing money. In order to protect everyone involved, hire a real estate lawyer to help you create the lease agreement. This will ensure that you stay within the limits of the law when you create the lease agreement and that you include all of the necessary components. For example, reports a Toronto real estate lawyer, a legal representative will make sure the lease agreement is legally sound, to protect you in case the property gets damaged, the tenants leave before the lease runs out, or a crime takes place in the rental unit.
Prepare for the Unexpected
The lease agreement should also try to provide for unexpected circumstances. There should be provisions in place to cover the following topics: what happens if the renter breaks the lease early, what happens if the landlord breaks the lease early, who is responsible for damaged property in the rental unit, who pays for repairs, and what happens if a crime such as theft occurs in the rental.
Landlords must protect themselves and their properties through the use of rental agreements. With care, and employing the tactics listed above, you can create a fair lease agreement which will ensure the safety of your property and assets.
Informational Credit to Sheldon L. Kasman & Associate LLP