One of the most important items a landlord will have is their Phoenix rental lease agreement. The more detailed and specific the agreement the better for both the property owner and tenant. In this blog we will discuss four important components of the lease including occupant names, late fees, legal notice fees & appliances. The lease agreement should include all property owner names and the full address. Additionally, it should include all occupant names include minors. Real Property Management Phoenix Valley suggests listing minors as well as their date of birth. We also recommend obtaining that information from the lease holder in writing. This information will be very valuable for when you complete a property inspection. We suggest taking this information with you to the inspection so you can verify that only the people on the lease are residing in the home. This will help you to recognize if there are any unauthorized occupants in the property.
Next let’s address late & legal notice fees. Late fees should be specified as a per day amount versus one lump sum after the due date. This way the tenant has incentive to pay the rent as close to on time as they can. The daily late fee amount should be somewhat substantial so that the tenant has incentive to pay on time. Also, we do encourage a grace period of one to two days but not much longer. This ties into our next component of legal notice fees. Spell out in the lease agreement that the tenant is responsible for any legal notice fees. This way if the tenant doesn’t pay the rent you can charge them back for the cost of serving them with the legal notice of an eviction. The tenant will have between 5-10 additional days to pay rent. For this reason you do not want the grace period to be longer than two days.
Final for this blog we will address appliances. The lease agreement should list which appliances the home owner is including in the property. It should also spell out which appliances the landlord will fix and which the tenant is responsible for. Keep in mind that the landlord will always be responsible for the stove, built in micro and dishwasher. However very often the tenant is responsible for the fridge, washer & dryer as they tend to be optional appliances.
For more information on our lease “must haves” visit our blog/podcast page to listen to our two additional segments.
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