Table Of Contents
The Lease Should Cover Certain Key Terms and Conditions
An effective lease must adequately protect your financial interests and be enforceable while also complying with federal, state and local laws.
Working with a lawyer can help ensure that the terms and conditions covered in your leasing documents are both effective and enforceable.
A lease that sets expectations and addresses common issues related to tenancy during the lease term can help you avoid tenant disputes and prevent unexpected gaps in rentals, regardless of market conditions.
Should your lease be month-to-month, for 6 months with renewals, a full year, or something else?
Choosing the right term for your lease is a balance between risk and reward. Month-to-month leases provide flexibility but may sacrifice revenue stability depending on the current market. A long lease may provide a stable stream but can be a problem if a tenant turns out to be troublesome. However, a good tenant would be perfect for a two-year lease.
What date, specifically, should the lease start and end?
To avoid hassle related to pro-rating rent, notice deadlines, late fees and other time-sensitive elements of a lease, it may be best to start and end leases on the first and last day of a month.
What happens if a tenant wants to leave early? Or stay longer?
If a tenant stays after the end of the lease term and the landlord accepts rent from that tenant, they may become a holdover tenant with the right to occupy the property under a new lease term. Make sure your lease properly covers this situation to avoid having to evict a tenant who won’t leave. A lease normally will provide when a landlord or tenant may terminate the lease and the notice that is required.