We buy houses in Jenison Michigan. Are you planning to sell your house in Jenison MI with tenants? Do you have a good lease agreement with your tenants? We are homebuyer in Jenison and learn more about what to expect in our latest post!
Making Sure You Have a Good Lease In Jenison MI
If you are a landlord having a good lease agreement can save you plenty of headaches and money in the long run.
How do you know if you have a good lease? Read on to make sure yours covers everything!
Two main reasons landlord’s run into problems are 1) expectations aren’t clear up front and 2) your lease is weak and you have no recourse if there is a problem. Having a good lease agreement is critical in the landlord business and can save you tremendous time, money and headaches in the long run if you do it right. Full disclaimer, I am not a attorney and I highly recommend you consult with an attorney even after reading this. Each State/County/City/Township you live in will have different laws and you will want to make sure you are familiar with all them pertaining to rental property lease agreements.
Here are the top things to consider when creating a lease agreement in Jenison MI that works for you
Term length in Jenison Home
A good lease term is 12 months, but short term leases are also becoming more common and may attract more applicants (6 months)
A month-to-month term might make sense if you are trying to sell the house or the tenant is trying to find other housing
Payment terms
A good lease will require payment to made on the 1st of the month, but what if they are late? Will you offer a grace period? Will there be a late fee assessed? This one is entirely up to you but don’t give them too much leeway otherwise the tenant take advantage!
What Forms of Payment Will you Accept in Jenison home?
Cash is king but if you accept cash always make record of it and write a receipt. Personal checks are common but there is always a risk they will bounce. Credit cards are not very common and you would also be charged a fee, so take that into consideration. Online services such as Paypal or Venmo might work best since payment is instant and there is a paper trail.
Utilities
Who pays them? A good lease will define who pays the utilities and in many cases it’s the tenant, especially since many utilities are billed based on consumption (Electricity, gas, water). Sometimes the landlord will chip in and pay for some garbage removal or other fixed costs. Certainly cable and internet would be the tenant’s responsibility but sometimes multi-tenant properties or apartment complexes have universal packages that may be included or provided at discount. Make sure this is is spelled out in your lease for each utility.
General Maintenance/Lawn care
More times than not the landlord will be responsible for general maintenance of the property, especially if something needed repair such as an appliance, door handle, window, etc. A good lease will also include who is responsible for lawn care, snow removal and general upkeep. In most cases if you have a multi unit property lawn care of snow removal would be included but it may be the tenants responsibility if the property is single family.
Who is living in Jenison MI? How many people?
It’s important you know who is living in your house. A good lease will list the names of the tenants occupying the property. That way you can pre-screen all tenants up front and make sure you know exactly who will be living there. If there will be any changes the landlord must be notified.
Pets
Make sure you have a pet policy. Will you allow pets? If so, what types of pets? Will there be a pet fee? Also make sure there is language in the lease about cleaning up after their pet.
Guest Policy
A good lease will also spell out the guest policy. Have you ever seen a guest become a tenant? It happens. Make sure your policy is clear about how long guests can stay and at what point would a guest be considered a tenant.
Security Deposit
Security deposits have been the norm for years. Usually half or a full months rent worth is collected. If the tenant damages something you can take it out of the security deposit when the lease is up. A good lease will spell out what constitutes damage vs. normal wear and tear. Make sure you do a walk through with the tenant before they move in and take as many pictures as you can. This will help prove damages in the end. Schedule another walk through just before move out and if there are any damages be sure to itemize and show quotes/receipts of the cost to repair.
Another note on security deposits, some laws require you to hold the deposit in a separate bank account and pay back the interest collected. Make sure you know the laws regarding security deposits in your geographic area. Some landlord’s are moving away from security deposits and doing non-refundable move in fees instead.
Cleaning and Move Out
Make sure your tenant knows your expectation of clean when moving out. It’s common that many landlord’s will hire a professional cleaning service to come in and deep clean during a turnover, but that doesn’t mean the tenant can leave the place a dump. A good lease will have clear move out instructions.
Equally as important as having a good lease is doing your due diligence when pre-screening tenants. Be sure to have them fill out a credit application, verify jobs and income, check references and call prior landlord’s. Property management companies will also do this for a fee and this may be a better option once you scale and you have multiple rental properties.
There are many things to consider when putting together a good lease. Just make sure to review the lease in it’s entirety with a new tenant so you are both on the same page. Always best to set expectations up front!
Sell My House In Jenison MI
Selling your house with tenants in Jenison MI can be challenging depending on your situation and who your tenants are. However, when you plan ahead, act thoughtfully, and stick to what the law says, it can be done. We are Jenison MI home buyer and we would love to help you learn more about the options available to you! We offer cash for houses in Jenison MI. Sell your house in MI area now!