Landlord Newsletter - HOT! Lease Clauses for Your Protection

Dear Fellow Landlord,

In this newsletter:

• HOT Lease Clauses for Landlord Protection!
  
• Do's & Don'ts: Regarding the Lease Signing
• Ask the Attorney, Real Estate Attorney, John Reno
  

Please e-mail us if you have any questions or would like to add or share any material / information. Have a great month and an even more successful year ahead.
John Nuzzolese
John@theLPA.com

The following clauses in the LPA Lease make it possible for me to be an effective landlord and property manager. Each and every one of these clauses have saved me repeatedly from the situations in which they apply. I've included links to related articles and forms I use to enforce these clauses.

1. Late Fees, Added Rent & Bounced Check
   LPA Lease Clause # 3, Late Fees is one of the most active clauses that frequently need to be enforced for most landlords. Without this clause, you are not legally able to enforce collecting a late fee, so it is very important to have in your lease. I am thankful for this clause because it not only covers us for an initial late fee, but it also provides the tenant with an incentive to hurry up and pay the late fee and the rent by imposing a "Daily Late Fee" that starts one or two days after the initial late fee is due.

   The clause also provides for a "bounced check" or NFS charge, which covers the landlord for fees in the event of a dishonored rent check.

   A very important detail that is often left out of many leases is "Added Rent" or "Additional Rent". You should always classify unpaid late fees and other charges like bounced check fees as "Added Rent". That makes makes those charges legally collectible as rent. If you really wanted to, (I'm not saying you should), you can evict a tenant for unpaid late fees classified as "Added Rent" even if they've paid the rent each month.
   
   

2. Early Payment Discount
   Many landlords don't like to give the tenant a discount for paying the rent on time or early. The sentiment is: "Why should I reward the tenant for doing something they agreed to do anyway?" I agree with the sentiment, but I have to disagree with the reality of it. I would rather have the bulk of my rents come in a week to 5 days before the first of the month. I usually build a $5. or $10. early payment discount into every lease.

   Good responsible tenants want that discount and have a reason to pay early. It sure beats sending late notices and chasing the rent each month. More importantly it saves my valuable time and gives me peace of mind too.

   If you don't have this clause already in your lease, you can also present your tenants with an Early Payment Discount Voucher.
   
   

3. Maintenance & Repairs
   LPA Lease clause #9 instructs the tenant on maintenance and repairs in detail. This clause has saved me many times in various ways. It includes policy concerning how presentable the property must be for the purpose of showing once notice is given to vacate. A messy or damaged property can prevent you from re-renting.

   The clause also requires the tenant to be responsible for minor repairs under a certain determined amount of money. Painting is not allowed without the owners approval. If I find the tenant is not upholding his responsibilities, I will notify him with a Lease Violation Notice.
   
   

4. Plumbing Stoppages
   A common call you hear from your tenants might be about toilets or plumbing stoppages. I love the plumbing stoppage clause because it has practically eliminated plumbing stoppage calls for us. It is the tenant's waste in the lines and the tenant should be responsible for keeping the waste lines clean. Even if you don't use the LPA Lease, the Plumbing Stoppage & Drain Maintenance Notice can be very helpful.
   
   

There are many more important elements of The LPA Lease that you should be using! If you're not, you can easily use The LPA's forms to implement them into your property management...

Click here for more HOT lease clauses

Landlord Do's & Don'ts
What The LPA says you should do and what you shouldn't do regarding The Lease Signing

• Sit down and read over the lease with the tenant, emphasizing the important parts.
  
• Have a signed & fully documented Property Condition Report before giving any keys to the tenants.
  
• Staple a copy of the Tenant's Notice of Intention to Vacate Letter to the back of the tenant's copy of the lease.
  
• Be sure all funds are in cash or the check has cleared before giving the tenant any keys.
  
• Warn the tenant that you or your partner or manager report to national tenant and credit bureaus, so it would be in their best interest to pay on time or early.
  
  

• Allow the tenant to strike clauses or amend important parts of your lease.
  
• Be afraid to tear up the lease and return the tenant's money if you are unhappy with the meeting.
  
• Get too friendly with the tenants.
  

Real Estate Attorney John Reno, an expert in landlord tenant legal matters, has specialized in landlord tenant law for many years. Mr. Reno answers questions asked by LPA members to help solve all kinds of landlord tenant problems.

Dear Mr. Reno:
In a lot of your responses you mention taking the individuals to small claims court. In my case with the leased individual certain to die in the next couple of days how do I take the current occupiers to court if I don't have names socials or other identification. I only have license plate numbers of all the cars associated with the people currently residing there. - DJ, LPA Landlord

A: These are John Doe's. You can evict John Doe's for nonpayment or a holdover. Sometimes the John Doe's come to into court and give their names, so there's a chance you'll get a money judgement. But even then, the Judge may rule that you have no rental agreement with them. The problem is, your legal theory that these people owe you money is a little shaky.

If you have a landlord tenant problem you'd like to ask a question about, please feel free to e-mail me your question.
Submit a landlord / tenant question for Mr. Reno
Please try to keep your questions as short and to the point as possible.

If you haven't already, please take the opportunity to get your LPA Member Discount on all Quick Check Credit Reports! Quick Check is a fast, easy way to access online credit reports!

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