The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: divsnowball on January 21, 2015, 12:18:32 PM
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I currently live in a property I plan to use as a rental in a few years. Theres a real estate agent in the building who is often hired by owners to rent out their unit. She handles acquiring the renter and the lease.
How strong does my lease document need to be? Do I need to hire someone to draft a lease or is it something I can do myself? I dont want to open myself up to any future legal issues
THANKS
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My suggestion is to create your own lease.
My state (NJ) has requirements for a plain english lease. You can buy copies of this at some stores.
I got three or four of these, put together the best of all, added some more of mine (no water beds, no smoking, no pets etc) and created my own.
Most people do not read the document before signing, so put everything in it to protect yourself and your investment.
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Look at the lease your local association of Realtors uses. It's more tested and specific to your area than some random one you'll find online or in a office supply store.
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Safest bet is to search for a state approved standard lease.
Just type "(your state) standard lease" into search and go from there.
For example, search in my state of MN leads you to this - http://msba.mnbar.org/search-results?indexCatalogue=main-site&searchQuery=lease&wordsMode=0#.VMJMeC6PaT0 Where you can get a fill in the blanks lease that should pass muster with any court system in the state as being valid.
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Look at the lease your local association of Realtors uses. It's more tested and specific to your area than some random one you'll find online or in a office supply store.
Totally agree with this...it will likely address anything that might come up. If I list a rental property for a client, I charge half of a month's rent. I then put it on the MLS and pay half of that fee to the agent that brings an acceptable tenant. That agent shows the property, collects the application fee, and gets the application to me. I take care of getting the applicant's credit report, verifying income, and calling past landlords. Then, I make a recommendation to my client to accept or reject this applicant. If he accepts them, I type up the lease, collect the first month's rent and any security/pet deposits and get executed copies to all parties involved. I also have the new tenant fill out a property condition form and sign it within 2 days of move-in. If you feel confident screening applicant's, then save the fee and do it yourself. But if you're fairly new to being a landlord, half a month's rent might be the way to go.
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My first time doing on it my own, since usually the listing Realtor does it I also went with the NJ Realtor Standard Lease.
I like the no water beds add in.
I also have bedbug treatment/extermination shall be at the cost of the tenant.
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My first time doing on it my own, since usually the listing Realtor does it I also went with the NJ Realtor Standard Lease.
I like the no water beds add in.
I also have bedbug treatment/extermination shall be at the cost of the tenant.
I've heard bedbugs are becoming more common than they used to be. I also add no smoking inside of the home. Very hard to sell or lease a home that smells like cigarette smoke.