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Quicken Rental Property Manager - Save $50 + Free Shipping LEASE AGREEMENT
This lease made and entered into on this ______________ day of _________________, of ________________, 19_____ between _____________________________________ Lessor and ______________________________________, Lessee (s), hereinafter known as Resident.
1. That in consideration of the payment of the rents, the conditions herein contained and the representations made and the application filed by Resident, Lessor hereby leases to the undersigned the property located at _________ ____________________________, for a term of six months commencing on the ___________ day of ____________, 200X. The Resident agrees to pay a monthly rental of $_________ Dollars payable monthly in advance on the first day of each and every month. If all rent is not paid on or before the 5th of the month, Resident agrees to pay a late charge of $10.00 plus an additional late charge of $5.00 per day thereafter until paid in full. Resident agrees to pay a $20.00 charge for each returned check plus late charges. Payment of rent shall be an independent covenant; and all monies received by Lessor shall be applied first to non-rent obligations of Resident, then to rent, regardless of notations on checks. At Lessor’s option, Lessor may at any time require that all rent and other sums be paid in either cash, money order, or one monthly check rather than multiple checks.
2. A security deposit of $___________ is required. This deposit will be held as security against any damage to the above property…interior, exterior, carpets, furniture, fixtures and appliances and/or cleaning of house when vacated, if necessary. Lessor may retain said deposit in full. If Resident vacates said house prior to the expiration of this lease the balance of rent is due and payable. Deposit amount cannot be deducted from the last rental payment made.
3. No Resident can sub-let or sub-rent the house without express written consent of Lessor.
4. It is agreed that the Resident will be responsible for all utilities and deposits.
5. Lessor reserves the right to require the Resident of above named house to vacate the property at any time for cause (condemnation or sale) but obliges itself to give thirty (30) days advance notice in writing before taking such action, except as provided in the following paragraph:
Resident agrees that neither he, nor his agents, visitors, will make, or cause to be made, any improper noise on the premises on in any other manner interfere with the peaceful enjoyment of said premises by other residents and in the event of a violation of this or failure to make the rental payments when due, or the violation of any other condition of this lease or the rules and regulations attached hereto, the Lessor at its election shall have the right to declare this lease terminated immediately, and to re-enter the house or any part thereof, either with or without process of law, and to take possession thereof and to remove the said Resident and all his goods and chattels found therein. In the event of forfeiture, the Resident hereby expressly waives notice of termination and all legal right which he may have to hold and retain said premises. In the event of such default and/or re-entry, the rent for the full balance of the term originally included in this lease, together with such expenses as the Lessor may incur for the attorneys’ fees, disbursements, brokerage and for placing the apartment in good order for re-letting, shall become due and payable. The Resident hereby waives all right of exemptions as allowed by the Constitution and/or laws of the State of Alabama as to any amount that becomes due hereunder.
6. Resident agrees to hold Lessor harmless from any claims for injuries to the property or the person of the Resident, or property or persons of his family, or any visitors of the Resident of whatever nature, whether arising from accident, fire, theft, leakage, or defective condition of any pipes, toilet plumbing, electric wires or fixtures, gas pipes of any other mishaps.
7. Rent checks are to be made payable to _______________________.
8. Rules and Regulations of House: A. All rent is due on the first day of the month and payable by the fifth of the month. B. Once one check has been returned for any resident the management will accept only cash or a money order from that resident. C. No pets are allowed inside the house. D. Resident is responsible for all lawn care.
____________________________________
____________________________________ By___________________________ LESSOR
____________________________ LESSEE
Insurance - Homeowners, Landlord and RenterIf you are converting a property like your primary or secondary home to rental, you need to check with your insurance carrier. You may need to convert your existing homeowners insurance to another policy, like landlord insurance. The renter would be responsible for getting their own coverage for contents. You might consider getting an "umbrella liability policy" as well, to provide extra protection against a renter or guests of the renter getting injured on the property. For example, if the steps were in need of repair and you neglected to fix them and someone fell and was badly injured, it could be a lawsuit waiting to happen. Property Tax - Residence vs. RentalIn addition to checking the insurance policy, you may need to check on the property taxes because most states tax rental properties higher than homestead, primary or secondary residences and vacation homes. If the property taxes are increased because you converted the property to a rental, you may need to increase your escrow if the property taxes are being paid from escrow along with your mortgage. Mortgage on Rental PropertyHopefully your house will rent for at least three quarters of one percent of the value of the property per month, i.e., a home that is worth $100,000 should rent for at least $750 per month and a house that is worth $200,000 should rent for $1,500 per month. Properties that won't support this minimum income level are not considered good rental property investments, however, in this economy you may have no choice but to rent the property for what you can get, even if that is just enough to make the mortgage payments. If you find yourself in a position that you can't sell the home for enough to pay it off, renting it out may be the next best alternative. If you are unable to rent the property for enough to meet the monthly mortgage payment, taxes and insurance, you may need to investigate refinancing the mortgage. You might want to pursue a refinance while you are still occupying the property as your home because the mortgage rules are very different between personal residences and rental properties. Convert it to rental after do the refinance. Some people aren't cut out to be landlords and may want to hire a professional real estate person or company to manage the rental property for them. Usually such service costs 10% of the gross rental income.
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