TIP OF THE MONTH - September 2013
REVIEWING AND SIGNING DOCUMENTS
Source: Property Management for Dummies
By Robert Griswold
Tenants and property
owners alike are usually aware of all the legal paperwork involved in
renting a home. And although sifting through all that legalese
isn’t fun for anyone, it is important. Rental property owners and
tenants each have specific legal rights and responsibilities that are
outlined in these documents, and being aware of what you’re agreeing
to-and being sure that your tenants know what they’re agreeing to is
Be sure that your tenant understands that, when he/she signs
your lease or rental agreement, he/she is entering into a business
contract that has significant rights and responsibilities for both
parties. Before your tenant signs the document, carefully and
methodically review each clause of the rental agreement or lease.
Certain clauses in the lease or rental agreement are so
important that you should have the tenant specifically initial them to
indicate that he/she has read these points and understands his/her
rights and responsibilities in relation to them. Fore example-the
clause concerning the need for the tenant to obtain his/her own
renter’s insurance policy to protect his/her property and cover him/her
for liability claims should be initialed by the tenant.
Also have the new tenant initial that he/she has received the
keys for the rental property and acknowledge that you had the locks
rekeyed or changed since the last tenant vacated.
Be sure to have the tenant review and sign any other addenda before taking possession of the rental unit.
This web page was updated on 09/01/2013.