Rental property leases scare the wits out of new property investors. If you dream of owning multiple properties, quitting your job, and living a comfortable life, you probably have a few nightmares as well. Nothing causes consternation, confusion, and fear in new rental property investors quite like lease agreements.
With the right basic information (and the right real estate lawyer), you can easily navigate the pages and pages of small print in your rental agreements. Luckily, you don’t need a degree in landlord/tenant law to profit from rental properties. Approach tenancy agreements just like mortgage agreements; gain as much general knowledge as you can so you can understand your lawyer’s advice.
To enjoy safe and steady cash flow from your rental property leases, you must understand a few key concepts.
What is a Lease Agreement?
Leases protect both landlords and tenants by setting down the specific terms of a rental contract in writing. They identify the durations, rent payment amounts, collection procedures, etc. for a tenant’s stay on a landlord’s property.
Lease Agreements vs. Rental Agreements
In most jurisdictions, rental agreements renew at the end of each month, unless the landlord or tenant ends the contract. Lease agreements, on the other hand, last for a set period of time (typically, one year). Neither party can change a lease agreement; these contracts are legally binding until their terms expire.
Who Must Sign a Lease?
Typically, all adult tenants (over 18) sign leases for the properties they inhabit. Either a landlord or a property manager (acting as their agent) can sign a lease. With the right management team on your side, you can profit from rental property leases without having to be on-hand for daily transactions!
Who Should Write a Lease?
Yes, you can use a rental agreement template to create lease agreements, but one size rarely fits all. Ask your real estate lawyer to create a lease agreement specific to your local jurisdiction(s). They should know the best practices for your market and how to adapt a rental/lease agreement to suit your individual needs (and any unique features of your property).
Trust the Experts
Property management companies, like Cash Flow Properties USA (CFP), have years of writing lease agreements in the markets we serve. Because we provide a vast array of hands-off rental properties to investors like you, we know how to cut through the legalese and create the right documents for every circumstance.
From rental applications to renewal notices, we have property management down to a science – so you don’t have to reinvent the wheel!
Cash Flow Properties USA supports investors who want to purchase turnkey, hands-off rental properties. Our teams acquire, fully renovate, and place tenants in these units. These investments feature 12-36 month leases and professional property management. At CFP, we handle all property management tasks, including rent collection, repairs, maintenance, and bill payments.
Click here to learn more about our services and apply to work with our investment team. After your application goes through, you can set up a 1-on-1 call with a CFP investment counselor.
Best Wishes,
Dave Lundgren, CEO