Customized Lease Agreement Archives - Training Property Managers

Cosigner Agreement

Anthony Locke — Fri, 11 Aug 2017 19:35:05 +0000

We got a lot of cosigner guarantors because a) we asked for them, and b) because they added backup to the applicant’s promise to fulfill the terms of the lease. We found collecting from the cosigner after move out was often easier than collecting from the tenant who left owing a balance. Often we got an employer, parent, sweetheart, partner or relative to back the applicant and agree that if they left owing money, the co-signer would make good on their promise. It’s amazing how a threatening letter or two wakes them up and they pay the bill left behind by the tenant. Owners are grateful when you do a great job for them and are pleased when they see you go the extra mile to protect them.

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Audit Checklist

Anthony Locke — Tue, 03 Jan 2017 01:55:20 +0000

When you think a file is complete let a staff person fill out a checklist of documents that need to be in the file. Change this to fit your system but be sure to have one.

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Security System Disclaimer

Anthony Locke — Tue, 03 Jan 2017 01:52:36 +0000

When a tenant previews a property and sees a security system it is reasonable that they expect it to be up and running when they move in, and that it is included in the rent. You need to dispel that expectation and protect yourself from the liabilities of what happens if it fails. This is a CYA document letting the tenant know that it is their responsibility to deal with the monitoring system and the cost belongs to them. You are not making any representations as to its reliability, its functionality or its cost and they agree to hold you harmless if the system does not function properly.

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Security Deposit Promissory Note

Anthony Locke — Tue, 03 Jan 2017 01:52:31 +0000

We tried many times to add a special stipulation for security deposit installments but couldn’t get judges to enforce it. The note was the answer as judges understand promissory notes.

We often get more than one month’s rent as a security deposit. Depending on their credit, we will agree to take installments on a portion of that deposit. We did it poorly for many years and struggled with getting judges to enforce our documents. We finally went to our attorney and paid to get it right. Now we are able to enforce this document and evict for failure to pay as agreed. It’s not 100% but we are successful 85% of the time. Taking installments on the deposit probably needs the owner’s approval depending on your model.

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Military Exhibit

Anthony Locke — Tue, 03 Jan 2017 01:49:41 +0000

When you know the tenant is in the military, or works for a military support company, and qualifies for a military out clause in their lease, you want to make sure they don’t take advantage of the Servicemember’s Civil Relief Act. They have requirements to fulfill and just saying they’re being transferred and you can’t hold them to the lease doesn’t cut it. This document lays out the rules for military release of tenancy without your giving up your rights.

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Move me in even though the property is not ready for occupancy

Anthony Locke — Tue, 03 Jan 2017 01:46:50 +0000

Occasionally the house is not clean enough, repairs have not been completed, utilities aren’t on, carpets didn’t get cleaned or the handy man (or owner) didn’t clean up their mess. You have 2 options: don’t move in today and give some time to correct the problem or move in today but don’t hold it against us. This document takes all the air out of them by saying they shouldn’t take the property now but try again in a couple of days so you can correct the issue. Many can’t wait and will press to take it “as is”. There’s a downside to letting them do so. This document says they need it today and agree to not hold it against you. This document allow tenants to take a property that is not ready.

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Personal Property Schedule

Anthony Locke — Tue, 03 Jan 2017 01:46:45 +0000

When the owner leaves behind their lawn furniture, pool table, tractor, or counter top microwave you need a form to list everything and language that has the tenant promising to leave it behind when they vacate. There is little you can do to protect the owner from this stuff walking away but the owner wants you to make an effort. This document fulfills that duty to the owner and hopefully the tenant will remember what isn’t theirs and leave it behind.

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Hot Tub Exhibit to Lease

Anthony Locke — Tue, 03 Jan 2017 01:44:48 +0000

Tenants think it’s a toy but owners know they require some maintenance. Tenants will let water levels get too low, burn out motors, let the water turn green, turn them into fish ponds, and use them as a place to store trash.

The last thing you want is to suggest to a tenant the hot tub will stay hot or keep working. Disclose your lack of knowledge with hot tub maintenance and your general unfamiliarity with how they work. Put the entire burden on them and warn them about the dangers of it getting too hot and someone getting burned. You may even require they get renter’s insurance with you (and the owner) as additional insured. See our document on the owner sign up documents for the other side of the hot tub issue.

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Smoke Detector Release and Renters Insurance Disclosure

Anthony Locke — Tue, 03 Jan 2017 01:32:23 +0000

This two-sided document is CYA by introducing (and counting) the number of smoke detectors in the property and addressing renters insurance. You want to document that there are smoke detectors and remind them you provide them but they have charged batteries in them. It also reminds them the owner’s insurance doesn’t cover their personal belongings. We don’t require renters insurance but we do inform them of the need to get coverage. They sign this at move in, documenting the discussion so they can’t blame you if something happens to their contents.

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Mold Information and Prevention

Anthony Locke — Tue, 03 Jan 2017 01:30:34 +0000

This is a 3-page educational piece developed over the years to protect the owner from claims of mold and claims of health issues. Give it to your residents to prepare them to deal with issues of mold. It prevents them from claiming mold the last month they are there or because they want a way out of the lease without paying the early termination fees. You want to be able to tell the judge “we did everything we could to prepare the resident to address these issues before they moved in.” It puts the burden on them to report mold. Not 2 years after it’s discovered but within 2 days.

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Mold, Mildew, Moisture Disclosure

Anthony Locke — Tue, 03 Jan 2017 01:28:53 +0000

Pay close attention to this as it is the topic of debates and litigation. Make sure you’re on the right side of this and disclose, train, warn and follow up. This document is both a training piece and a CYA regarding the claims of mold, what they have to do and how you’ll respond if they feel there is more than the normal moisture in the property.

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Lead Paint and Flood Disclosure — Tenant

Anthony Locke — Tue, 03 Jan 2017 01:23:24 +0000

Houses built before 1978 often used lead paint which has been discovered to be toxic and a serious health hazard. Federal law requires that you have the owner and tenant sign this to disclose the presence of (or lack of) this poison in the home. The owner signs this document to reveal any knowledge they have regarding any lead paint in their home. Copy the original the owner signs and have every tenant sign a copy before you move them in. Use the same original over and over. Just have the tenant sign a copy and keep it with other important tenant documents.

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Landlord vs. Resident’s Responsibilities Maintenance Chart

Anthony Locke — Tue, 03 Jan 2017 01:20:11 +0000

Some tenants like visuals (an easy reminder) so here’s a chart of who is responsible for what. It’s all in the lease but is often not read. This is something they can tape to their refrigerator to remind them of what they can call you for and what they need to take care of themselves. We like it simple and this makes it simple.

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Move-in Checklist and Report Card

Anthony Locke — Tue, 03 Jan 2017 01:17:53 +0000

In our model the tenant signs a move-in inspection and this checklist. We want them to testify that the window locks work as do the door locks; the smoke detectors are working (they never check them); and how many keys and garage door openers they received. This has items on it we’ve missed up over the years and don’t want to miss them again. We do 40 move-ins per month and we’ll get it wrong if we don’t have this checklist. It keeps growing as we continue to learn and it will evolve as you evolve. This also serves as a report to the owner of any deferred maintenance that needs attention and documents both urgent and not so urgent needs.

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Homeowner Association Agreement

Anthony Locke — Tue, 03 Jan 2017 01:15:26 +0000

This is a big CYA document. If the HOA does something drastic like booting the tenant’s car, disconnect the water, sue the tenant for rent because the owner hasn’t paid his dues or threatened to evict the tenant you need to be protected from litigation. The owner will ignore the HOA to get it leased and you’ll deal with the battles when the HOA wakes up to the reality that there is a new tenant in the community. You want the tenant holding you harmless when the HOA can’t open the pool or tennis courts because not enough owners have paid their dues. You need to protect yourself against the possibility of being sued for constructive eviction, wrongful dispossessory, loss of quiet enjoyment or harassment by the HOA. Tenants want to blame the property manager for everything no matter whose fault it is. If the owner fails to keep current with the HOA it can create chaos between you and the tenant so prevent it with this document and protect yourself.

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Resident’s Maintenance Agreement

Anthony Locke — Tue, 03 Jan 2017 01:13:19 +0000

You should articulate exactly what maintenance issues the tenant is responsible for in writing. This document addresses the nuisance items you are trying to prevent like after hours maintenance, missed appointments, flipping GFI switches, resetting garbage disposals, changing out all light bulbs and other nickel-dime nuisance maintenance items. We’ve learned the precise balance between pushing off habitability issues to them (which you must not do) and holding them responsible for nuisance maintenance calls.

Owners frequently ask, “how do you prevent/manage tenant’s request to complete unnecessary repairs and running up the owner’s tab?” This document will help answer that question.

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Pet Exhibit

Anthony Locke — Tue, 03 Jan 2017 01:09:16 +0000

You want to be sure every tenant signs a pet exhibit so every detail is covered. Don’t try to cover this in the lease as it stretches it out. If they have a pet you want them to tell you breed, weight, color and name so they don’t sneak in a different one. You also want to remind them of the six things they need to do after move-out to get their deposit back. If they don’t have a pet you need to remind them of the costs, penalties and process you’ll go through if you discover a pet. Let them know there are serious penalties if they get caught with an unauthorized pet.

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Official Notice of Approval

Anthony Locke — Tue, 03 Jan 2017 01:06:25 +0000

There needs to be an enforceable document that lets the tenant know they are approved and lists the terms of the lease and who to contact. This identifies the start date, move-in date, rent, deposits, fees, utility companies and other critical data for their occupancy. It puts their deposit at risk and identifies what happens if they change their mind. If you get the lease signed immediately, you probably don’t need this. We don’t get the lease signed until 3-4 days before move-in so we use this to “lock them in” without having to sign the lease immediately. We purposely delay executing the lease because we’ve had some tenants request the lease in advance and back out over something they don’t like (fees, charges, etc). For us it is a 2-step process. The Official Notice of Approval commits them and gets the first month’s rent. Then, close to the move-in date when they are less likely to back out, we execute the lease.

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Power of Attorney

Anthony Locke — Fri, 23 Dec 2016 00:17:15 +0000

Often you’ll find yourself in a situation where ‘one of the owners wants you to deal with the other one’ and not be involved in any decisions. Or, you’ll be receiving orders from several owners and you’ll want to ‘reduce the confusion and designate one to do all the talking.’ Managing for two or three owners is often chaotic like kids listening to two parents who don’t agree. A power of attorney is the solution and they are easy to fill out. This is one our attorney crafted years ago just for owners to identify ‘who is doing the talking’ or ‘I’m traveling a lot, take orders from my brother.’ You don’t want to follow those instructions without a document protecting yourself if the designate does something stupid and makes a bad decision for the owner. When in doubt you’ll be blamed for listening to the wrong person and take the hit for the consequences. Get it in writing. Use a POA. They are simple to complete and will cover you when things go wrong.

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