As a responsible property owner, your top priority is going to be the bottom line. You want to ensure that you’re making the most of your financial investments.
For that reason, you’re considering renting out your property to someone else. After all, even experts recognize the tax-related value of renting out your house.
Perhaps, though, you aren’t sure where to start when it comes to renting out a house. Well, the good news is that you’ve come to the right place by reading this article. Detailed below is everything about how to write a lease agreement.
Don’t underestimate the value of a well-formed and strategic lease agreement. As a landlord, it’s essential that you and your tenants are on the same page. Keep reading for key characteristics of a long-term lease agreement.
Start with a List of Your Top Priorities
As a landlord, what are the things you care about most? Some property owners prioritize the value of paying rent on time above all else. Others tend to value tenants who take care of the property itself.
Take the time to evaluate what you expect from your potential tenants. For instance, who is going to take care of home repair and maintenance projects? Are certain projects the responsibility of the tenant, while others are yours?
In fact, this question is one major reason many property owners choose to hire a management company. Property management companies take some of that home improvement responsibility.
Of course, they’ll often expect a percentage of the monthly rent as payment. For that reason, it’s also worthwhile to analyze your existing budget. Are you willing to hire a property management company if it relieves you from some of the stress?
Either way, include your top priorities in the rental agreement you draft. It’s crucial that you’re very clear about the responsibilities of caring for the house.
Specify in detail concerning the different tasks between yourself, a property management company, and the tenants. The party who mows the lawn might be different than the one who fixes plumbing issues, for example. At the end of the day, ensure you’re prepared for the finer details of this arrangement.
There Are Plenty of Free Online Template to Discover
If you still need some inspiration for your rental agreement, that’s okay. You can find a variety of examples with a quick online search.
Of course, it’s likely that you’ll still want to make a significant amount of edits to something you found off of a website. That’s why it’s still essential you consider your unique priorities on the matter.
Still, online templates can at least get you started. You can find some great insight or ideas as to how to put your rental agreement together.
Remember to Respect Local and Federal Laws and Regulations
When you’re drafting any kind of contract, you want to be clear about laws and regulations. This is true on all federal, state, and local levels of regulations, too.
Take the time to research renter agreement laws in your applicable area. Even if you’re unfamiliar with navigating those laws, it’s worth your time. If you have to, hire a reputable property management company to guide you on drafting a compliant rental agreement.
Evaluate the Effectiveness of Your Rental Agreement on a Regular Basis
As your financial investments grow over the years, it’s likely you’ll learn a lot of valuable business lessons. That means you might want to edit your rental agreement every once in a while.
Be willing to conduct a yearly audit of your rental agreement. Doing so will ensure your interests continue to be protected over time. After all, it’s possible that legal regulations could fluctuate over the years.
Ask a Professional How to Write a Lease Agreement
The last, and most significant, advice for writing a rental agreement is to trust the professionals. After all, that’s why property management companies exist in the first place. That way, you can trust that your role as a landlord can be easy, yet secure.
Already in 2019, the property management companies have generated $75 billion in revenue. In other words, there are plenty of other property owners taking advantage of reliable management services. It’s up to you to hire a property management company you can trust.
One of the key benefits of a rental company is getting help with negotiating contracts. A responsible property management company will work with tenants on your behalf. For more detailed specifics, check out this article on reasons why you should hire a rental property manager.
When it comes to writing your rental agreement, your own research can only get you so far. You need to feel confident in the contract you present to potential tenants. For that reason, you should seek help from a qualified property management company.
Work with a Qualified Property Management Company Today
Now you have a thorough understanding of how to write a lease agreement. There’s no need to cut corners when it comes to protecting your property investments. To keep yourself and your tenants on the same page, a proper lease agreement makes all the difference.
Of course, there are a lot of ins and outs to navigate when it comes to rental agreements. You don’t want to end up with surprising liabilities, for instance. For that reason, it’s in your best interest to work with professionals on the matter.
In fact, that’s where we can help. As an experienced property management company, we work with clients just like you in the Denver area. We want you to have a profitable, hassle-free rental agreement with potential tenants.
That’s why we encourage you to browse through the rest of our website today. Find how our expertise can help you establish a secure, longlasting endeavor renting out a house. To start, check out the frequently asked questions many owners in the same situation have.
Further Reading from Bergan & Company