Lease Questions
I will be closing on my second rental property in about 2 weeks. There is currently a tenant who would like to stay. The current rent creates a good positive cash flow. The place does need some work so I do not plan on raising the rent so I can have the existing tenant stay while I do repairs. I figure after a year I can start ratcheting up the rent.
The current Landlord says that there is no security deposit. I have given the landlord a form for him and the tenant to sign indicating that there is no security deposit so I can't be held liable.
I plan to ask the tenant to pay an extra $100/month to build a deposit of lets say $700 (1months rent).
The existing landlord has a month to month lease which is only two lines long. (It states property and month to month lease - No other clauses) The arragement is for me to honor the month to month lease for four months at the current rent. (I have been told that the tenants would like to stay much longer-but I still have not spoke with them yet.
There are currently two occupants (in this single family townhome). I plan to have them sign a new lease before closing.
Should I put both tenants on the lease? What are the benefits of doing so? Is there joint and severable liability to those who sign?
Also, I am told that the old landlord would come by and pick up the rent. Should I continue this? I would prefer to get the rent is mailed to me (but not late of course). Does anybody have any opinions on if it is mailed where it should be to; my home address or a PO Box?
Please let me know any thoughs comments or suggestions on my plans.
I am located in Delaware.
Thanks in advance.
-Adam
Adam,
Every adult person living in a rental/leased home needs to be included in the lease agreement with full liabilities. That way, if one leaves, then the other is still completely responsible for the terms of the lease agreement.
In your new lease agreement, state that the rent is to be mailed to X address. Most lease agreements state that the rent is not considered late if the postmark is the due date or before, but you can change it to whatever you want. As far as a PO box or home address, some argue that the PO is better to protect your home from possible angry tenants. Me, I'm lazy. I'd rather them mail it directly to my address. I also try not to do anything that would tick them off enough to want to try to find me at home
Roger
Hey,
Sounds like you have a very good plan!!
On the P.O.Box or home address issue, I would never give a tenant my home address (just like I would never give them my home phone number). Either get a box from the Post Office or a Mailbox, Etc (or whatever they call themselves now).
have them send it to your bank account