The relationship between landlords and tenants has historically been a contentious one, however, this can easily be avoided if both parties are educated on their own rights and responsibilities. Whether you're a landlord who needs assistance drafting an air-tight lease or a tenant looking for a way to better understand your rental agreement, this blog post should have you covered.
Advice for New Landlords
If you're just starting out, creating a lease can be a daunting task, but it's absolutely essential for maintaining a positive relationship with your tenants. Some investment properties have existing tenants with a lease that may require an amendment to ensure that the new property owner and the tenant have a mutual understanding and are able to fulfill their legal obligations. If there are complications with the existing lease, it may be necessary to draft new documents to suit the tenants. For example, if the tenant can no longer afford to pay rental fees, but the tenants are responsible and treat the property with respect, it may be worth changing terms or creating a new agreement. With each minor adjustment to the lease terms, new agreements may be required.
Required Legal Documentation
Statutes requiring tenants and landlords to amend or fill out new documentation is a way to maintain a healthy and stable rental market. Housing is such a sensitive issue that it makes sense to create parameters where both parties understand each other. Some examples of common documents tenants and landlords should be familiar with to avoid potential litigation are the following:
- Monthly Rental Agreement – A written agreement between a landlord and a tenant for the rental of a property on a month-to-month basis, which typically includes details about the rent amount, payment due date, and termination notice period.
- Assignment of Lease – A landlord consents to the transfer of a tenant's rights and responsibilities under a lease to another party, known as the assignee. In this process, the original tenant, known as the assignor, typically transfers their right to occupy the rental property to the assignee for the remaining term of the lease.
- Demand for Rent – A written notice or request by a landlord to a tenant for payment of unpaid rent, which typically includes the amount owed, due date, and consequences of non-payment.
- Landlord's Consent to Sublease – A written agreement that allows a tenant to sublease their rental property to another person, with the approval of the landlord. There are certain legal requirements that must be met for subleasing.
- Lease Termination Agreement – A written agreement between a landlord and a tenant to end a lease before its specified end date, which typically includes details about the effective termination date, any penalties, and the return of the security deposit.
- Notification to Landlord to Make Repairs – A written notice from a tenant to a landlord requesting that repairs be made to the rental property, which typically includes details about the required repairs and a deadline for completion.
- Sublease – A written agreement between a tenant and another person allowing them to rent all or part of the rental property, with the permission of the landlord, for a period of time specified in the sublease. The tenant remains responsible for fulfilling the terms of the original lease with the landlord. There are certain legal requirements that must be met for subleasing.
Knowing the right documents required for your situation isn't always easy. If you own multiple investment properties with tenants, it's important to keep all documents up-to-date and organized. NCLegalDocuments.com has made it easy to create new documents and have them reviewed by experienced attorneys with our secure client portal. Start developing your lease agreements by filling out a questionnaire on our website, or giving us a call at (704) 492-2588.