By GoldenWest Management
One of the most common things that landlords want to know especially if they are just getting started with owning rental properties is how long should their lease term be.
9-12 Months Is Best
For the best results and highest return on investment from your rental property, we recommend to every landlord that their leases range between nine and 12 months in length.
This is an optimal length for every lease because it guarantees that you will enjoy consistent cash flow from your rental property instead of being faced with having to renew your lease in another six months.
Terms To Include In Your Lease
Now that you know how long your lease should be the next big question is what should you include in your lease?
Here are a few terms to consider:
#1 – All Tenants Should Be Named – Knowing the names of every tenant who is living in your rental property is important because you want to know at all times who is living there. You also want to know who you can legally pursue should one of the tenants fail on their obligation to pay the rent.
#2 – There Must Be Limits on Occupancy – Another important thing to do when creating your lease is to place limits on occupancy. This means that only the adult tenants and their children should be living there and not friends or other relatives.
#3 – Define When and How Rent Should Be Paid – Last of all, your lease should define how and when rent should be paid.
As with any lease, this means that rent should be paid by the 1st of the month and will be considered late by the 3rd.
Your lease should also define acceptable forms of payment too like payment by check, credit card or online just to ensure that you offer your tenant multiple ways to pay the rent and don’t have to deal with excuses for why they cannot pay.
Source – Nolo.com
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