LANDLORD SPECIAL REPORT: #4

Signing the Lease Agreement

A quality lease agreement outlines in detail what is expected from tenant who will treat the property with pride and respect.

If possible, the lease should be read and explained to the tenant in person. It is more effective that way. After all, the lease agreement is an instruction manual for how to be your tenant in your rental property.

Before turning over a valuable asset for a mere 1 or 2 month security deposit, make sure the tenants understand and agree to all your terms. You'd be surprised at how many people are so eager to just sign the lease without bothering to read it. You can get a real idea of what these people will be like as tenants by how they respond to the terms in your lease.
For example:

• What does it tell you if the prospect has a major problem with your late fee policy? That's right, he expects to pay rent late.
• How about if the prospect argues about being responsible for minor repairs?
• Or the cleaning charge?
• Or if he has a problem with a penalty for unauthorized occupants?
• What if he has a real problem with the default clause, which outlines your rights to evict for nonpayment?
• Did you know about the Daily Rental clause in which the tenant agrees that you may, in case of a default, take on the same rights of a hotel, enabling you to have them removed and arrested for theft of services and/or trespassing?

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