As a landlord or owner, one of your main responsibilities is to ensure resident satisfaction. Like most things, the best way to do so is by setting clear expectations. In the rental industry, the clearest expectations shouldn’t come from your mouth. They should come from your lease.
A clearly defined lease will set strong expectations on commonly misunderstood processes,
explain property offerings, and protect you, your property manager, and even your resident.
Here are 5 common renter questions your lease should answer – and why.
How do I pay rent?
Rent is a basic concern for residents, and no one likes late fees. Your lease should clearly outline the monthly rental amount, the due date for rental payment, and the acceptable payment methods. When it comes to money, it’s easy for miscommunications to arise.
Having your rental fees clearly listed in your lease helps deter problems with misunderstanding.
Besides being sure to include the rental rate, you should make it very obvious when rent is
considered late. Include any late fees or penalties for late payment to set clear expectations
regarding rent collection. It is also important to note if residents are liable for any bounced
checks or charges for nonsufficient funds to avoid any conflicts in the future.
Another note: Consider offering multiple payment options to accommodate the preferences of different residents and be sure your residents know which payment methods are accepted.
Are pets allowed?
According to The Humane Society, 72% of US renters have pets. Regardless of whether you allow pets or not, you should have a specific pet policy and it should be in your lease (or attached as an addendum). While rules for pet rent and guidelines can vary by state, you should ensure your lease covers any pet rent or deposits.
If pets are not allowed, your lease should explicitly state that rule. Residents who have pets are far more likely to seek alternative options if they aren’t allowed to move in with their pets. By providing this information up front, you ensure your residents move in happily and avoid any secret pet occupancy.
If you have restrictions, outline them simply. Some limitations you might have listed in your lease include breed restrictions, size limitations, pet types, and even the number of pets allowed in the space.
Are utilities included?
It is important for you to indicate any utilities included and any additional utility expenses your resident may be responsible for. Your lease should include language on what is covered and language regarding which utilities residents need to pay concisely. Some typically included utilities include water, sewage, and garbage.
Some locations may also charge for valet trash services, parking, and cable if the property sets this up on the resident's behalf.
Tip: You can advertise any included utilities as a special or resident perk because who really wants to pay utility expenses? Your future resident will leave ready to move in.
How much is the security deposit?
Security deposits can be a significant financial concern for residents. Clearly explain the security deposit policy in the lease agreement, including the amount required, how it will be held, and the conditions under which it will be returned.
Be sure to adhere to local legal requirements regarding security deposit returns. Many states have time frames dictating when security deposits must be mailed out. You may also see interest added on security deposits that must be paid as well.
Can I put holes in the walls?
Leasing professionals hear this question often. When renting, many prospects wonder what they can do as they envision themselves calling your property their home. If you have any restrictions on modifying or decorating the space, these should be available via the lease. If there are rules about paint colors, holes, carpet modifications, or more, you should ensure your lease will answer those questions.
If there are any fees associated with modifications, you should ensure the lease states that, states how fees will be assessed, and note the time period any charges will apply.
If you plan to charge for unsanctioned modifications as soon as they are discovered instead of at move-in, this note should be included within the pages of your lease and attached addendums.
By addressing these common resident questions in a clear and proactive manner, you can enhance the resident experience, build trust, and foster a positive relationship between you, your property manager, and your residents. At the end of the day, your goal is to ensure your residents are satisfied with their rental experience.
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