If you are going to be a landlord, I strongly advise having a well-prepared lease. A good lease will solidify the verbal agreement and important criteria between the landlord and the tenant. It will also be your strongest ally should a dispute arise between you and your tenant. A properly entered lease will go farther in solving landlord/tenant disputes than any other document you have. In 99 percent of the cases, it is your first weapon in a courtroom battle.
Finding a lease.
So once you understand what a lease is, the next question becomes, "Where does one find a good rental lease?"
That's an excellent question. One in fact, that I was having trouble solving for the scope of my book, How to Find That Quality Tenant. Fortunately, as I wrote the chapter on leases, I was determined not to let the problem stop me from helping you find or develop a good lease. Therefore, let's begin with me telling you how you go about finding a lease that best fits your needs. As far as I am concerned there are basically three ways. I'll list each of them along with the advantages and disadvantages associated with each choice.
Draft your own. (Should you choose to do this, read my article on the contents of a lease available on the articles page at http://www.findthatqualitytenant.com to better understand what should be in a lease)
The advantage: it is cheap.
The disadvantage: you could make some costly legal mistakes by not having enough information or the wrong information in your lease.
If you choose to draft a lease yourself, there are books you can purchase that will walk you through the process, although I cannot say how well they work, because I have personally never tried to draft my own lease.
You can pick one up at an office supply store.
Advantage: It is easy to do.
Disadvantage: It could be too general to offer adequate protection. When you need a lease right now, these store-bought leases can do the trick since they are so easy to find. They are cheap and simple but will offer the least amount of protection out of the three lease options.
You could have a real estate lawyer draft you a lease.
Advantage: It is tailor fit, offering you the best overall protection.
Disadvantage: It is more costly, although not nearly as costly as a poorly drafted lease followed by a tenant dispute.
As you can probably guess by that last comment, I recommend using a real estate lawyer to draft a lease. They know the laws for your state, county, and locale, and have a good idea which landlord/tenant disputes are most likely to trip you up. Let their expertise and past experiences work to your advantage.
In addition, when you are a landlord, you have at least some financial net worth; definitely more than your tenants will have. This automatically makes you prone to frivolous lawsuits and unwarranted demands by those tenants.
A properly drafted lease will offer maximum custom protection against many of the possible lawsuits and demands landlords are exposed to. Therefore, I would advise you to have a lawyer draft your lease and to do it from the time you put that first tenant in your first rental.
I know money can be extremely tight when you are first entering your landlording career, but I highly recommend using a lawyer from the beginning for this reason. If you draft your own lease or use a store-bought one and you have reasonable success with it for a couple of tenants, you could be lulled into a false sense of security. When you reach this point, you will never pay a professional to draft a lease for you until you end up with a legal dispute, which may of course, be too late.
Take my recommendation and spend the money initially on a lawyer structured lease.
(I am not a lawyer; therefore, if you have any legal concerns with anything in this article, please contact the appropriate legal counsel).
Related Articles
Find a Solid Rental Lease
By: Don Conrad | 18/05/2007 | Real Estate
Having a strong, binding tenant agreement is one of the most important pieces of paperwork a landlord can have. Read the following article to gain a better understanding where one can find a lease most suited to their needs.
Practice your A,b,c's
By: Don Conrad | 27/06/2007 | Real Estate
A landlord wears many hats. One of those hats happens to be salesman, especially when you are showing your rental dwelling to prospective tenants. Read this article to understand a little bit more about wearing the salesman hat.
The Contents of a Lease
By: Don Conrad | 05/02/2007 | Real Estate
Most landlords know that they need a lease agreement between them and the tenants that read their properties. What a lot of a landlords do not know is all the topics that should be covered in that lease. Read this brief article to better understand this subject.
Practice Your ABCs
By: Don Conrad | 03/07/2007 | Real Estate
When it comes time to meet the tenant prospect at the dwelling, many things begin to happen. For starters you will begin to size up your tenants prospects to see if they really fit your qualifications as per your phone interview. You will also try to establish that your rental...
The Business of Collecting the Rent
By: Carolyn Gibson | 10/12/2007 | Real Estate
Do you own rental property? Are you a real estate investor? Do you need your rent to help pay the mortgage? Have you had problems getting your tenants to pay the rent? This article will cover some important policies that you need to conduct the financial business of collecting residential rent.
Are you a Landlord With Dangerous Dogs?
By: Don Conrad | 12/02/2007 | Real Estate
Many tenants have pet dogs that are extremely vicious and quite dangerous. How does this affect the landlord and the properties that he rents? Find out some of the basics concerning the topic of dangerous dogs.
Legalese Explained: Obligations Of A Lease Assignment And "Covenants Running With The Land"
By: Bob Miles | 17/05/2007 | Law
If you are a tenant and you assign your house lease to somebody else (a "third party"), your assignment of your lease contract does not relieve you of your obligations to the original landlord. If, for example, you assign your lease to Ralph and Ralph doesn't pay the rent, the...
Renting an Apartment With the Homeowner in the Building
By: Carolyn Gibson, CPM | 26/02/2008 | Real Estate
Renting an apartment from an owner who lives in the same building can be a rewarding experience. Living in an owner-occupied building depends on whether or not the landlord and tenant are compatible with the rules, habits and expectations of the homeowner.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
AOL Auto start out of control
By: neesie | 24-07-2008
My AOL Homepage does not stay minimized and even starts up automatically when I close it. All auto start settings are off. How can I stop this from happening?
"My Map" on Google Maps
By: leslie | 24-07-2008
I created a map on Google Maps, but now I can't figure out how anyone else can view my map. I made it public, but can't figure out how to search for it except when I am signed it and can see it under "My Maps." Help please!! Thanks!
Skype
By: Bobster | 24-07-2008
how much data does a skype video call use?
I am looking to hire a few physical therapists for ...
By: eric | 23-07-2008
I am looking to hire a few physical therapists for an outpatient clinic in Staten island, new York. can someone get back to me and let know if they have anybody who can work or an angency that fills these types of positions? My number is 917-836-8265 or you can email me at efwconsulting@aol.com.
Eric
The gated community with no gate
By: Wanting to move | 23-07-2008
The apartment i am living in is a gated community. The only problem is that the gate never works. For the last two months the gate stays wide open. Is there anyone I can go to for help? The apartment just says that they "try to fix it but people break it again". I don't feel safe any more. I live above drug dealers and smell pot every time I walk into my building.
Can't send my e-mail
By: Celia | 22-07-2008
I am unable to send aol e-mail. I get a message about a url and a puzzle. What does that mean?
Q&A Powered by:
Latest Real Estate Articles
Quick Profits With a Property Tax Sale
By: Joe Cline | 25/07/2008
Different resources appear for the savvy real estate investor and to take advantage of them is to make some serious profits. Each of the resources has a different time frame involved with it and as such you have to learn which ones will produce the fast money and which require patience. The main point to be made here is the fact that you can easily turn a profit if you are involved with the right methods. This speaks to the need to learn all that you can about real estate investing resources.
Getting and Keeping Your House in Order
By: Joe Cline | 25/07/2008
Organization is, for most people, one of those lofty goals that everyone has but few accomplish. If they do accomplish it, the order is maintained for no more than a day, if that, and in the blink of an eye, chaos has crept back in. You know it’s true. You’ve been trying to become organized for days, weeks, months, if you’re honest, years. However, it seems like something that may never happen, and you’re all but ready to give up. You don’t have to. Approaching organization from the right standp
Gurgaon- Ultimate Destination for Developers
By: George Gonigal | 25/07/2008
Real Estate in Gurgaon has seen major developments over the past few years with new residential real estate market developed.
TIC Securities-Licensed Registered Representatives Can Only Handle TIC Interest Transactions
By: Kathryn Landry | 25/07/2008
there is continuing tension existing between the real estate industry and also the securities industry with regard to which industry must have control over the selling process involved in transacting TIC interests.
TIC: Qualified Intermediaries Will Complete Required Legal Formalities With Regard To 1031 Exchange
By: Kathryn Landry | 25/07/2008
TIC: Qualified Intermediaries are usually referred to as 1031 Exchange Accommodators by anyone engaged in real estate business and some even call them the 1031 Exchange Facilitator whose main functions are to complete the required legal documents so that all applicable laws as well as regulations and even rulings are complied with.
Tenant In Common: Securities Or Real Estate: A Matter That Is Open To Interpretation
By: Kathryn Landry | 25/07/2008
Mostly, people that make TIC (tenant in common) investments will have 1031 exchange in mind and even though TIC as an industry is just a small part of 1031 market, it is still increasing at a good rate and thus worthy of serious consideration.
Working With TIC: Asset Type Prognostication
By: Kathryn Landry | 25/07/2008
There are a few different real estate investments to choose from, but one that offers the most value and least risk is the TIC. The TIC or tenants in common investment is also known as the 1031 exchange, and is an essential instrument maximizing capital growth of real property assets.
Things For Buyers to Consider When Determining the Appropriate Property Value and Offer Price
By: Greg Gagnon | 25/07/2008
Determining the value of home can be sometimes a difficult task for a buyer. Just as there are many factors that can impact a home's value, the details and potential success of your offer also rely on several pieces of information. If you are thinking about buying a home, you...
More from Don Conrad
Today's Real Estate Market: Gold at Silver Prices
By: Don Conrad | 18/11/2007 | Real Estate
If you want to get into real estate investing, now is the time to buy. The downward spiral of real estate values bought on by the crash of the sub-prime lending industry and the number of foreclosures hitting the market is providing great opportunities to real estate. Experts are predicting this to be the second worst fall of values since the depression.
Practice Your ABCs
By: Don Conrad | 03/07/2007 | Real Estate
When it comes time to meet the tenant prospect at the dwelling, many things begin to happen. For starters you will begin to size up your tenants prospects to see if they really fit your qualifications as per your phone interview. You will also try to establish that your rental...
Practice your A,b,c's
By: Don Conrad | 27/06/2007 | Real Estate
A landlord wears many hats. One of those hats happens to be salesman, especially when you are showing your rental dwelling to prospective tenants. Read this article to understand a little bit more about wearing the salesman hat.
Find a Solid Rental Lease
By: Don Conrad | 18/05/2007 | Real Estate
Having a strong, binding tenant agreement is one of the most important pieces of paperwork a landlord can have. Read the following article to gain a better understanding where one can find a lease most suited to their needs.
Should you Collect Extra Rent and Extra Security Deposit for Pets?
By: Don Conrad | 19/02/2007 | Real Estate
There are definitely two views of thought between landlords and tenants when it comes to collecting extra money for pets. The issue of extra security deposit, extra rent, or combination of, has been the basis for many landlord/tenant disputes. Both sides have valid points. Read this article to better understand both the landlord in the tenant's perspective.
Are you a Landlord With Dangerous Dogs?
By: Don Conrad | 12/02/2007 | Real Estate
Many tenants have pet dogs that are extremely vicious and quite dangerous. How does this affect the landlord and the properties that he rents? Find out some of the basics concerning the topic of dangerous dogs.
The Contents of a Lease
By: Don Conrad | 05/02/2007 | Real Estate
Most landlords know that they need a lease agreement between them and the tenants that read their properties. What a lot of a landlords do not know is all the topics that should be covered in that lease. Read this brief article to better understand this subject.
Rental Cleanliness and Curb Appeal
By: Don Conrad | 29/01/2007 | Real Estate
Competition for good quality tenants is usually very stiff. Extra time spent on curb appeal and cleanliness is often all it takes to tilt the odds in your favor. Read this article to get an idea where you can spend a little extra time and effort for a more eye appealing rental.
Finance 
