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Why It’s Important to Have a Lease for Rental Property

System - Tuesday, September 14, 2021
Property Management Blog

When it comes to being a landlord, lease agreements matter. Failing to use them could seriously jeopardize your investment and your peace of mind.

There are many good reasons to invest in real estate. But if you're going to invest in rental properties, you'll want to ensure you get a lease for rental property. This will spare you from issues that could drain your wallet.

Entering into a lease agreement is a way to set out the terms of a deal between you and your tenant. Both parties will know their rights and obligations, which means a lease pact will benefit both sides. 

What follows is a look at some of the reasons why a lease pact is critical.

Lease for Rental Property Spells Out Particulars

Entering a leasing agreement with a tenant means that you and the renter will know how long the rental agreement is, what the rent is, when the rent is due, and more. 

It's critical for both parties to know these and other relevant details. There will be no need for confusion since each side knows their rights and duties.

Hiring a company specializing in lease management services will take a load off your shoulders and will allow you to focus on other important matters. 

Stipulates Who Is Responsible for Repairs

Another reason why it makes sense to get a rental property lease is that the document will spell out who is responsible for repairs and maintenance. 

If there's an issue with windows, locks, appliances, or anything else, you and the renter will want to know which party is responsible. 

You'll also want it to be clear about situations where the renter might need to initiate getting repairs done before seeking reimbursement from you, the landlord.

A service provider offering leasing management can help. Such a company will be able to work with the tenant and move forward with any required repairs and maintenance in a timely manner. 

Security Deposit Terms

A security deposit will allow you to safeguard your rental property investment. As part of the lease, you can request that a tenant makes a deposit of a certain amount.

You can spell out what terms need to be met before the tenant can be reimbursed the security deposit should he or she depart. If there is any damage left behind, you can use the deposit to cover the expenses of rectifying the problem.

So, you will want a leasing agreement that communicates the condition the property needs to be left in before returning the deposit.

You can retain the services of a leasing and management firm to assist with a lot of the important administrative tasks associated with overseeing your rental properties.

The leasing manager at such a firm will be well equipped to assist you. Using, among other things, lease management software, a property management firm will be a reliable third party that makes things easier.

Stay in the Loop

You'll want your tenant to notify you of any plans for a vacation that will result in the property being left unattended, damage to the property that needs to be addressed, or other matters.

Ensure that the leasing agreement covers what types of situations or events the tenant needs to report to you as the landlord. This will help to build a respectful and effective landlord-tenant relationship.

It Pays to Speak with a Property Management Firm

You certainly need a lease for rental property. Entering a landlord-tenant arrangement necessitates getting a leasing agreement in place. It will protect you, your investment, and the tenant.

At Ocala Property Management Experts, we help landlords like yourself. We can handle a lot of the day-to-day administrative duties so that you can focus your attention on other matters. Get in touch to learn more.