Rental Agreements – What You Need to Know

Here is an article submitted to us that talks about dealing with rental agreements or leases. The links in it are links to exclusive resources for our Real Estate Investor Bronze Members. Enjoy:

When looking at a Rental Agreement (also called a lease), whether as tenant or landlord, there are certain things that you must look at. First, you will want to look at the who, what, when and how much. There are also clauses that you will want to look out for as they can be a sign that you do not want to do business with this particular landlord.

The first four things to examine are the who, what and when. The “who” portion defines the landlord and the lessee. It deals with roommates, visitors, and whether or not subletting is allowed. This portion also deals with the tenant’s rights in terms of the landlord’s access to the property. “What” lays out the exact property to which the tenant has rights. This would include not only the living space, but also any parking space, storage area or common areas. The final portion deals with “when.” This tells the parties what the duration of the lease is. The final part is “how much.” This details the exact cost of renting the property, when the rent is due and how it is to be paid.

Next, there are certain things that you will want to avoid. Make sure to read your contract carefully to make sure that these are not present. First, you do not want a shared utility meter. Make sure the bill is put in your name, and only covers your usage. Second, avoid any contract which gives the landlord permission to raise your rent if his costs (taxes, utilities, etc.) increase. Finally, be sure that you do not give your landlord too much leeway. This would include clauses that release the landlord from any liability due to carelessness or allowing him or her unrestricted entry to the property.

If the who, what, when and how much are to your liking, move on and read the rest of the document. Be wary of any Rental Agreement that has clauses such as the ones above. Read any document carefully before you sign to ensure that you are getting a fair agreement.

Learn all about and download a Free Rental Agreement whether you are renting or your are interested in Real Estate Investing for our Real Estate Investor Bronze Members.

Until my next post,

James

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