Owning a commercial building and leasing units out to people can be a good source of income for many landlords. However, many legal issues can arise when dealing with tenants.
It is important to keep a thorough lease agreement from all tenants on file in order to help prevent legal problems in the real estate business. Here are some items that are important to include in a lease agreement.
Names of tenants
Include the names of all tenants on a lease agreement. By doing this, you ensure that everyone is responsible if any issues such as late payments or property damage occur. It is also important to make sure you know how many people are living in the rental unit so you can avoid taking part in any possible zoning violations.
Terms of rent
Clearly state the amount of rent that is due each month and the date that you expect to receive the payment. Usually, rental payments are due on the first of the month or the first business day of the month. In addition, state on the lease which methods of payment are acceptable.
How you will handle repairs
If you have a dedicated maintenance worker, direct tenants to contact them in case they have a maintenance emergency or wish to request any repairs for their unit. Give tenants a reasonable timeframe for when you will complete the requested repairs.
When your tenants sign a thorough lease agreement, you save both you and your tenants from possible hassles and disagreements in the future.