You have advertised your property, received the applications, screened the potential residents through a tenant screening, and have found the perfect resident for your rental and are ready for an apartment rental agreement. Now all you have to do is move them in. There are just a couple more steps to the process of renting right.
- Review and sign the lease.
- Perform the move in inspection.
- Hand over the keys to only those on the lease.
The rental agreement, or lease, that you and your new resident sign forms the contractual basis of your relationship and formally specifies the terms of the rental agreement binding the owner and the resident.
Most of your obligations are governed and limited by the conditions contained in a lease or rental agreement. Given their importance it is crucial to use effective and up to date legal agreements with your residents. All contractual leases, to be upheld in court, must be fair and equitable. With or without a written lease, the business of owning and leasing rental property is also subject to state and local municipal statutes and ordinances.
Your state may dictate certain policies, rents and other major factors concerning your apartment rental agreement. Even if you have been a rental property owner for a long time you will also want to periodically review your state landlord tenant law or landlord association as things do change from time to time.
Leases and rental agreements cover the basics of the terms of tenancy including
- Amount of rent
- Date rent is due
- Resident obligations
- Landlord obligations
- Any covenants or agreements between the two parties
However, although you may be tempted to put every detail into the lease, a better option may be to use addendums or exhibits to meet the different needs of different residents.
Unfortunately, most residents are not knowledgeable or made aware of their obligations. This problem is solved by thoroughly communicating these responsibilities before the resident moves in. It’s up to every owner to create a list of policies and to communicate those policies to all residents. The more clearly you explain your rules, procedures, and expectations at the start, the less chance there is that you’ll experience misunderstandings later.
With the lease you should also have a list of “house rules” with rules and regulations that spell out what you expect from your residents. Make these rules clear and review each of them in detail as you go over the apartment rental agreement. Have the resident initial next to each one and sign the overall list before handing over the keys.
