Atlanta property owners often have a lot on their plates. They're responsible for finding reliable residents who pay rent on time and maintain the property. Property investors also need to know about specific lease agreements that outline the resident's and property owners' responsibilities. However, this is the type of support property owners can find with a Marietta property management company.
What should property owners know about residential lease agreements? Read this article for our expert insights!
What Is a Lease Agreement?
A lease agreement is a document that outlines what a renter needs to do and what a residential property owner will provide. Every lease is different and can be tailored specially for you and your situation. However, strong rental agreements must all include some of the same basic information to comply with landlord-tenant laws.
Clauses Every Custom Residential Lease Should Include
While it might be tempting to start with a standard lease agreement template, it's critical not to stop there. Effective leases should be customized depending on a property investor's specifications and the specific residential property. In addition, a generic lease can leave your property and income without the protection you need against bad tenants or unforeseen circumstances.
What are some of those items to include in a lease? First, let's take a look at the clauses covered in each lease agreement you provide to your residents.
Identify Both Parties
A lease agreement is a contract between the renter and the property owner. So, each lease agreement must list the parties involved in the contract. In addition, the lease should list the name of every resident over the age of 18.
Identify the Rental Property
The lease agreement should include the subdivision name where the rental property is located. You should also provide the complete mailing address of the property. Work with property management experts to also include a detailed description of the property in the lease, including other structures on the property.
The Lease Term
Outline the dates when the lease agreement is in effect. You should use exact start and end dates, rather than broad terms like the lease is valid for six months or one year. Many yearly leases convert to month-to-month lease agreements after they expire. If so, make sure to explain that in the lease agreement.
The Rent Amount and When It Is Due
The lease should specify the rent amount and when it's due. It's also critical to note when a payment is considered late and the penalties for past-due rent.
Security Deposit Terms
A residential lease agreement should include a clause dealing with the security deposit. It should consist of the amount collected, how it will be returned, and what can be deducted from the security deposit to pay for damages and other items.
This clause covers a resident's obligations. Renters have specific responsibilities in terms of maintaining the rental property. They must also not cause any harm to the rental property and must comply with all zoning regulations.
If you require residents to carry renters insurance during the lease term, make sure that's included in the lease agreement.
Property Owner and Renter Signatures
If the lease has not been signed and dated, it's not legally binding. The property owner's and residents' signatures indicate that they have agreed to abide by the provisions of the lease. Make sure all occupants over the age of 18 sign and date the agreement.
Before finalizing a lease, it's a good idea to have an experienced Marietta property management company and your attorney look over the custom lease agreement to make sure it complies with federal and Georgia state laws.
Other Details That Should Be In an Atlanta Lease Agreement
In addition to the clauses listed above, additional addendums can also be added to cover any items not mentioned in the main section of the standard lease agreement.
Reasons for addendums can include:
- Pet policies (including size and breed restrictions and any pet deposit info)
- Smoking rules (including tobacco or marijuana)
- Adding a roommate to the lease
Also, make sure to disclose to renters anything that is state-mandated. For example, landlord and tenant laws can require specific lead paint disclosures or other issues that have been resolved within the property.
Work With Marietta Property Management Experts
If you're an Atlanta property owner, staying on top of everything happening in your rental property can be hard. This includes knowing what a residential lease agreement should look like and the specific requirements for Atlanta real estate investors.
Renters Warehouse Atlanta helps investors handle everything required for successful rental properties. In addition, we can help craft a legally binding lease agreement that complies with local and federal laws. Reach out soon to learn more about our property management services!