Lease
hello...
This is my first rental and I am still trying to decide the best way to structure a lease agreement that offers a discount for early payments as well as late fees as a % or a flat fee... Does anyone know where I can obtain a copy of some leases that I could possibly use.. I am interested to see how some of your leases differ.
Try an office supply store. I am sure they have generic leases that you can use to get an idea of some of the more commonly used lease clauses. Also, check your local landlord tenant laws to ensure that any late fees you wish to propose is legal.
I would still be cautious about just using a generic form, or any lease form from a web site or from anyone else. My state laws dictate certain lease clauses must be included in my leases such as a lead paint disclosure, a military transfer clause, and an eviction assistance notice. Over the years, to respond to state, county and local municipal ordinances my leases have grown from about 8 pages to over 22 pages long.
I personally don't give discounts for on time or early rent payments, but I do charge a 5% late fee if the rent is not paid within five days of the due date.
Rather than relying on a lease form of doubtful origin and even more doubtful usefulness, suggest you visit a couple professional property management companies in your area. Ask them for a copy of their management agreement and a copy of their lease agreement to review. While you are there, describe your property and ask what market rent would be for your size property in that neighborhood.
When I started out I devoured a book called Landlording from the local bookstore. It has a lease in it with a paragraph on Discounts/Rebates.
I still use this paragraph in my current leases. My tenants have all chosen to have me save their rebates and send them December 15. They love getting it as a Christmas present from me. I send it in a Christmas card. One tenant sends me a card a day after Thanksgiving to remind me she is expecting it. I just thank her for reminding me. Works great and builds happy tenants.
The book I referred you to has answers to every conceivable question you will have. You need a book like this if you are going to rent out houses. And you need to study it.
Good luck
Dan
[addsig]
Landlording for dummies has an excellent lease, policies and procedures, and animal agreement. Unfortuntately they is no CD included.
Every landlord's legal guide has many documents and answers many questions.
I do not give a discount for early rent. I do state in my lease that no checks will be deposited before the 1st. I really need to keep it simple. I go to my PO Box on the 5th because the 6th is the late day. Late is 8% of the rent and and after the 6th there is an additional $10 per day.
I was thinking of having payments due by the 1st late by the 3rd.. and a $5 per day late fee.... also is it common to have a fee for return checks...and consider the tenant late until a good check is honored. thanks for the advice
All these questions are probably addressed by your local landlord tenant laws.
For example, in one county where I have rental property, the local landlord-tenant law requires a (minimum) 5-day grace period before late fees apply. The landlord-tenant laws in another county in the same state dictate a 15-day grace period. Furthermore, the state law limits my late fee charge to 5% of the outstanding rent.
For returned checks, I am allowed to collect a service charge. My bank charges me $25 per check (might have gone up to $35 recently) and I pass this back through to the tenant. Your local landlord tenant law may also dictate what you are allowed to do for returned checks.
If a bounced check causes the rent to be late, late fees apply.
thank you much dave T , I will check the laws.