Lease agreements are the building blocks of good landlord-tenant relationships. A well-prepared lease is clear, specific, and detailed. It carefully describes the responsibilities of a landlord and the tenant, clarifying expectations from both sides. Your Denver lease agreement should be properly prepared and reviewed before it reaches the hands of your tenant.
You might be tempted to create a uniformed tenancy agreement to save time and make it convenient for you. However, there’s no one size fits all for lease agreements that will serve the purposes of all landlords and tenants. It’s imperative that an individualized agreement be constructed. This should cover both the landlords’ preferences and local tenancy laws in managing a rental property. One must avoid making a poor lease agreement to save tenants and landlords from possible conflicts and confrontations.
Here are some of the common mistakes you should avoid while constructing your Denver, Colorado lease agreement:
1. Priority Failure
A landlord must create a lease agreement that highlights the essential provisions first like rent payment period and lease renewal date. However, a tenant must notice the importance of maintaining property upkeep, too. The property damages that might be incurred would be a financial drain and so the policies regarding this must also be present on your agreement.
Consider the format of the tenancy agreement. Study the provisions on it that should be marked in bold capital letters and emphasized with clear headings. Some tenants might skim through the agreement and miss out on the fine print if you’ve placed an important detail way down below or close to the final pages. To be fair, outline accordingly by making the most of formatting tools.
2. Impersonal Agreement
Tenants will frequently refer to your Denver lease agreement. Make sure to personalize it as much as possible.
This cements their personal responsibilities to the contract. There are various ways to make them feel more accountable by adding these to the lease agreement:
- Add tenants’ full legal names at the top of the contract and at the signature line.
- Substitute the impersonal “Tenant” term with the tenant’s full name throughout the whole agreement.
- Include the tenant’s name in a header or footer on each page.
- Design a cover letter containing the tenant’s full name with the Denver Rental Lease Agreement.
As much as possible, communicate personally with the tenant. Avoid online leasing. Meeting them in person has a definite impact by creating a sense of accountability. It will also build your rapport as a tenant and landlord at the initial stage.
Avoid illegal provisions such as application fees, pet deposits when the state policies ban it, and other unauthorized security deposits. Once an illegal provision is included in the agreement, this damages the entire thing.
One cannot include a blanket statement to simply disregard the illegal provisions. Your Denver lease agreement is binding, and tenants are protected in this case. The lease will always be valid in the eyes of the judge and the tenant. Therefore, carefully scrutinize your provisions before handing it over to a tenant to sign.
4. Work in Progress
It’s advisable that a legal expert checks your lease agreement. Leases are complicated and cannot be constructed through a set checklist.
You should know what to prioritize, what to include, and what to omit.
The benefit is once the document is finished, it will work in most situations. Pay attention to some of these commonly omitted provisions:
- Running a background check on a new tenant for short-term sublets
- Explanation of joint and several liabilities
- Policy for regular property inspections
- Restrictions on smoking
The lease should be created to be balanced and fair. Tenants should not be pushed to cooperate to provisions that are not mutually beneficial. A lease built on unfairness might not even hold up as legal in the court of law. The goal is to protect the landlord-tenant relationship and to attain this, a lease must be fair. It’s easy to earn a tenant’s respect and full cooperation when they feel that the lease agreement is impartial and does not lean on being advantageous to the landlord.
Your agreement should contain and adhere to certain principles. Most importantly, you have to focus on its fairness and legality.
Many landlords choose to make a simple lease agreement but over time include key clauses. This is to strengthen their protection as well. Note details about responsibilities especially in terms of property damages. If you allow pets, it’s vital to define expectations and make specific policies. If there are rules that aren’t covered, tenants are not bound to them.
Security deposits, added fees for penalties, and pet fees are important matters as well. They affect a tenant’s payment structure so emphasis must be placed here. A well-constructed lease agreement will cover and highlight this subject properly.
It’s recommended that your Denver lease agreement be drafted by a knowledgeable attorney to prevent mix-ups. The language used must be concise and clear to prevent different interpretations. Otherwise, a tenant may contest it in court.
If you believe that you need a property management company to guide you through the process, don’t hesitate to contact McGuire Property Management.