Some prefer automatic renewal, and others prefer renewing on a case-by-case basis. The best process of lease renewal is different for every landlord. You can also charge a one-time fee which could cover any unexpected expenses or discourage tenants from subleasing. An explicit subleasing policy helps you maintain control of who is living on the property. Describe the proper subleasing process, which can involve the same screening process as original tenants for any potential sublets. In this clause you can state the subleasing policy or prohibit subleasing altogether. This offers some legal protection, as “unpaid rent” is more easily defended during legal action compared to “unpaid late fees.” Additionally, it is recommended that this clause states that any late rent payments made by the tenant are first allocated toward outstanding fees before unpaid rent. You can specify any late fees as well as the grace period, which is required under some state laws. It is extremely important to specifically clarify the late rent policy. This incentivizes tenants to hold each other accountable and offers full protection in the event of unpaid rent. It considers all tenants to be jointly and individually liable for the lease agreement, making all tenants responsible for the entire rent amount and other lease clauses. Additionally, delineate the acceptable payment methods or preferred process for rent payment, whether it be direct check drop-off, mail-in, or an online software.Ī liability clause is vital to protect you legally in the event of partially unpaid rent, especially if there are multiple tenants living on the property. You may choose to clarify the actual amount of the rent as well, or even a breakdown of the rent payment. Important details to disclose concerning rent include how often rent is payed and the term of the lease. This protects you and your real estate property should there be a mistake in the lease or if your local laws change and part of your lease does not follow new guidelines or regulations. Severability states that in the event that any clause within the lease is deemed to be illegal, the rest of the lease remains intact and legally binding. Here are some of the most essential lease clauses to include in your lease:Ī severability clause is easily overlooked but plays an important role in the protection of the lease. However, for constructing a lease on your own, there are a variety of templates you can find online to help get you started. At Utopia, we gladly work personally with our clients to help them craft a lease that covers all the bases of property rentals. The best way to write a lease that is suited to your property is to work with your property management company. Building a lease can seem like an overwhelming task, as there is a lot of pressure to ensure you have sufficient information that protects you and your property throughout the renting term.
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