As the owner of residential rental property, how you have your lease agreement set up can be one of the most important components of your entire business. While having a carefully drafted lease may take a bit more time on the front end, it can be well worth it.
Certainly, the necessary details in the lease should include the:
- Name(s) of all tenants
- Limits on occupancy
- Term of the lease
- Rent amount (typically to be paid on a monthly basis)
- Security deposit amount (and details on what happens to these funds in certain situations)
- Activity restrictions (such as not allowing the tenant to partake in illegal activities in the dwelling or on the premises)
- Pet policy (and the amount of additional rent or fees if pets are allowed)
- Details on how and when the landlord may enter the property)
It is also essential that you have a lease that is state-specific, because not all states in the U.S. are exactly the same when it comes to various ordinances and other items that are required for being compliant. With that in mind, it may be necessary to include certain attachments to your rental property lease(s).
Over the past several years, many real estate investors have turned to online leases – which includes allowing tenants to sign the agreement(s) digitally, as well as pay their rent electronically. This can make rent collection easier and more convenient for both the tenant and the property owner.
Owning and operating rental property can be a lucrative endeavor – but unlike the late night informercial “gurus” want you to believe, it can take a tremendous amount of time and effort to ensure success.
By bringing a professional property manager on board, you can alleviate having to do a lot of this work yourself, while at the same time still generating income from your investments. So, if you own residential rental homes or units in Orlando and/or the surrounding Central Florida area, give us a call and we will fill you in on more of the details.