Do you have a property you’re thinking about renting out? Have you been thinking about entering the landlord world? If you answered yes to one or both of these questions, then you will also need to prepare a residential lease. A very thorough residential lease will in the end save you money and relieve stress. So what should you include in your lease? Below are four tips on what you should include.
1. Rent & Security Deposit
In the lease, make sure it is clearly stated how much rent is and when they need to pay it by. You also what to make sure you indicate what the late fees are in the event they do not pay on time. Something else you want to include is the security deposit amount. In Pennsylvania, a landlord may charge an equivalent of two months’ rent. For more information about the Pennsylvania leasing laws, contact us today.
Something else you may want to consider is requiring a background and credit check. This will help you determine on if they will be able to pay their rent and if they will pay it on time.
2. Summary of any other Fees
It is important to include any other fees your tenant must know about. These fees would include if they are responsible for utility fees, internet/cable, water and trash. If you include some of those fees in your rent, also indicate what fees are included in the rent.
Whether or not you are going to allow pets in your rental needs to be indicated in your lease. If you are going to allow pets, but have stipulations, include those as well. Stipulations could include: cats but no dogs; dogs but no cats; or dogs only to a certain amount of pounds.
4. Breaking or Breaching the Lease
What will happen if your tenant decides to break the lease early? Will you have a penalty? Will they not receive their security deposit back? Whatever you decide as your penalty, make sure it is clearly stated. Or what if someone breaches the lease? Are you able to terminate the lease under any conditions? Again, whatever you decide, the events of default should be clearly stated.
In the end you want to make sure you lease is properly written and includes everything you need included, which is why, if you decide to write your own, you should have it reviewed by a lawyer to make sure you are covered. Here at Sher & Associates, we can do just that for you! Or if you would prefer to meet with us and have us help you write up a draft, we can do that as well. Contact us today to schedule an appointment.
Sher & Associates, P.C. is a law firm located in Kutztown that can assist you in any of the following areas: business law, real estate law, and estate planning. We assist many individuals, businesses and families in and around Fleetwood, Blandon, Topton, Hamburg and Oley.