Good property management is very important because it determines whether an investment is going to be profitable or not. Property owners and property managers should ensure that rules and regulations governing the property are not in violation of tenants’ rights or exalts too much pressure on tenants. It is therefore important to draft a detailed rental agreement that covers all rules and regulations of your property, what you expect from tenants and what they should expect from you. The following are the basic items to include in a rental agreement for Las Vegas property management.
1. Tenant details
Rental agreement should have tenant details such as names, place of work, number of adults living in the rental unit and who is responsible for paying rent and taking care of the property. Tenant details are very essential in every rental agreement not only in Las Vegas property management but worldwide. Tenant details form the foundation of any rental agreement.
2. Property maintenance terms
Rental agreement should include property owner and tenant responsibilities in as far as property maintenance and repair is concerned. Rental agreement should state clearly, who will be responsible for damages, repairs, garbage collection and consequences for neglecting property maintenance conditions listed in the agreement. Rental agreement should also state whether tenants are allowed to keep pets or make any modification to the property without involving the property owner.
3. Eviction and lease buyout
It is worth noting that not all tenants are cooperative and some can be unruly or damaging. Therefore, property owners and property managers should be ready to conduct evictions whereby they are required to remove tenants from the rental property. Sometimes this can be a tough moment for property owners and property managers, especially when no eviction terms were included in the rental agreement. It is therefore important to include eviction terms in a rental agreement to help you win an eviction lawsuit if a tenant decided to sue you.
On the other hand, a lease buyout may arise when a tenant decides to pay the property owner certain amount of money to end the tenancy before the end of the agreed. This could be due to various reasons such as when the tenant is unable to pay monthly rent or when he/she has to relocate to other places. It is therefore important to include terms of lease buyout in a rental agreement to avoid complications when a tenant leaves the property before the end of the agreed duration.
4. Security deposits and other fees
A rental agreement should include all financial information associated with tenancy. This may include rent amount, security deposits, and other tenancy fees to be paid. It is important to state how security deposits will be paid back to the tenant when they leave the house, whether it will generate some interests and what happens if property is damaged by the time a tenant leaves the house. Tenants need to know how they will get their deposits back and other related conditions that may hinder them from having their deposits refunded.
5. Tenant rights
Tenants have their rights too, which vary from one state to another. It important to include tenant rights in a rental agreement so that tenants can decide whether they are comfortable with them or not before moving in. Otherwise, absence of tenant rights in a rental agreement may find property owners in a difficult situation if tenants files lawsuit for violation of their rights.
6. Occupancy limits
It is important to include occupancy limit in a rental agreement. The rental agreement should state clearly how many occupants are allowed to live in each rental unit. This should include both adults and children. Presence of occupancy limits in a rental agreement gives the property owner or property manager legal power to evict tenants who bring in their friends or relatives without your permission. Otherwise, tenants may decide to bring in their friends and relatives so that they share costs against the wish of the property owner.
7. Breaking the lease
It is important to include the guiding terms and conditions to be applied if tenants decide to end the tenancy before the agreed time. Similarly, property owners may decide to break the lease before the agreed time. Rental agreement should therefore state clearly all the penalties to parties that decide to break the lease earlier than the agreed time.
Generally, the above are the basic items to include in a rental agreement in order to have good relationship between tenants and property owners. However, there are more items that are included in a rental agreement, which vary from one property owner to another. If you need professional help, one firm I’ve had experience working with on my property in Summerlin Nevada is Costello Realty & Management. They’ll be able to provide you with further guidance on rental agreements in Las Vegas.