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Lease Agreements
So hubby and I have decided, for various reasons, to rent out our townhome in Colorado Springs while we are living in Japan, at least until the market hopefully goes up enough to sell it and at minimum break even.
We have been looking at lease agreements online, but are wondering if anyone here has any good lease agreements.
Not looking for much in particular, just getting a general feel and idea for lease agreements.
We know for sure it would be a 1-year lease, with in-home checkups every 3-4 months by the agent we hire to oversee the house while we are in Japan. There will also be a part in there for a $150 deductible if something breaks. I have fixed everything, and I mean EVERYTHING that needs fixing in this house, down to changing out lightbulbs and door handles.
So does anyone out there have examples of good rental leases? :)
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Re: Lease Agreements
^^^ one of the complicating factors in regard to leases is the differences in various state laws regarding renter's rights etc. Where Colorado is concerned, the potential for 'mediation' to be invoked by an unhappy tenant could pose a serious problem for a landlord who is 4000 miles away ( i.e. landlord doesn't show for the mediation = default victory for the tenant ). This leads to a potential necessity of employing more than an 'inspection agent' but a 'property manager' to whom you can grant de-facto power of attorney regarding the managed property. Most national realty companies offer this 'property management' service, but it obviously isn't free. And since Colorado absolutely forbids any form of 'self-help' on the part of the landlord ( i.e. locking out, shutting off utilities etc. ), failure to provide a local 'property manager' with power of attorney to address 'mediated' or other tenant disputes potentially leaves you vulnerable to a long term 'freeloading' tenant unless and until you personally return to the USA to legally deal with said tenant. The local branches of those national realty companies will also have 'sample leases' tailored to what state and local laws will actually allow a landlord to enforce via a contractual lease agreement.
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Re: Lease Agreements
I would look up the Tenant Handbook for your state to see various aspects from the tenant's point of view, and then just look up a general lease agreement (or hell, ask for a lease agreement from another house for rent that's similar to yours in the area and just change the details.)
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Re: Lease Agreements
I sent you a pm. I will give you a pa lease but as Mel suggested have it reviewed for state compliance..
I suggest you make sure to factor a minimum of 40% over costs (meaning 40% of final rent) to cover management, maintenance and vacancy. This does not include profit. So, if your rent is 1000, 400 is this pad, meaning everything else must be under 600
Make sure you have a trusted and reliable manager who is legally authorized by you and allowed in your state to handle things.
Consider selling the home to an llc or trust for liability protection (slip n fall)
Consider a rent to own or lease option, so repairs aren't your problem
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Re: Lease Agreements
We are giving my sister a power of attorney to be our property manager. If she decided later she doesn't want to do it, we have two property management companies as back-up.
We've factored in repairs, etc, into the rent. There is an HOA for our housing community which will take care of a lot of things.
We have the property listed as a rental, rent-to-own, or sell. We are working with a licensed realtor for this.
Just looking for some good leases. We didn't make the choice to rent or lease lightly, believe me. I did not want to do this, living so far away. But the market really is leaving us no choice. :(
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Re: Lease Agreements
Also check with your insurance company. Normal homeowners insurance will not cover if the property is a rental. Additional insurance (for additional money) is needed.
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Re: Lease Agreements
The check-ups and deductibles are fairly common for rent-by-owners, not so much for apartments.
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Re: Lease Agreements
The realtor that you have it listed with should have those kinds of documents.
Also law firms that handle evictions for you often have these forms. It is really worth the expense of having a lawyer handle an eviction, especially if your sister doesn't want to or doesn't know how to do it. Here is one link I found http://www.htspc.com/
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Re: Lease Agreements
And don't waitt if rent is late to file eviction. My lease says its due on the 1st, grace period to the 3rd, I'm in court on the 4th. If they pay, ok (they reimburse for all costs). But NEVER WAIT.