6 Signs It’s Time to Rewrite Your Rental Agreements for Future Tenants
The rental agreement is among the most crucial document every landlord ought to be mindful of. A clear and well stipulated rental contract ensures smooth living among tenants as well as protects your property from damage. An incomplete/outdated document puts you at greater liability, which can sometimes lead to pricey lawsuits. It’s therefore paramount to ensure that every tenant gets an updated contract before occupying your space.
While this is mostly the case, you might have been overlooking some tell-tale signs to know when exactly you need to redraft your rental agreement. Below are some of them.
1. The Current Lease is Old
Old here is relative. But it all boils down to the same thing – time changes things. When last did you review your lease agreement? You might be making losses either because the market fluctuated and the rentals are damned as expensive, or you’re charging the same price for 5 years. Modify your agreement to reflect the current market environment.
2. Just Finished a Remodeling Project
After revamping your rentals, it’s essential to revise the agreement to reflect these changes before enlisting new tenants. For example, you’d want to charge more because the rentals are more hospitable. Besides, it’s vital to alter rules to ensure the property is protected from damage so that your effort and money don’t go down the drain.
3. Laws Changed
Property laws both at state and county levels keep changing. The last thing you want is to get on the wrong side of the law just because you failed to update the rental agreement on time. That can cause fines and losses that you could otherwise avoid.
4. Tenants Experience
This can be good or bad. For instance, if your previous tenants kept complaining about their neighbors’ pets, you’d want to include a pet’s clause detailing rules concerning keeping pets before people can start searching for somewhere else.
5. More Occupants
If someone is coming to stay with one of the renters as a roommate (this happens mostly for colleges/university students), then your lease agreement should be up for review. If there is no clause on how many roommates can be allowed or procedures for enlisting additional occupants, include it before another tenant faces the same issue.
6. You have a New Rental(s)
It’s not surprising that many landlords might see no problem with using the same lease template for their newly acquired property. This is not recommended because every property is uniquely different. Learn to draft a new agreement for every rental property so that the specifics of each one are perfectly reflected.
Today’s Key Takeaway
Rewriting your rental agreement between tenants is a must-to-do thing if you’re to remain at the top of the game in this ever-changing industry. This is because it’s impossible to change terms midway the lease without first getting the tenant’s approval. Hiring a property manager like Leaf Management can also be of great help to enact the above efficiently.