Lease Agreements

As a responsible landlord, of course you want to know you have a secure lease agreement in place for your American rental property.

Lease agreements will  work for houses to rent, apartments to rent and rooms to rent. (Click here for immediate access)

Compliant Lease Agreement Forms

Here, you can get immediate access to compliant, easy to use, Lease agreements for any state in America.  These forms can be instantly downloaded and printed. (Click here for immediate access )

Protect your business

Protect yourself and your business by using legally binding lease contracts for all your rental properties. (Click here for immediate access)

Sub Lease protection for Tenants / Renters

If you are a tenant / renter and you want to sublease all, or part of the property you are renting, look no further for a properly drafted, legally binding sublease agreement. (Click here for immediate access)

Commercial Lease Agreements

If you area landlord with Commercial Real Estate and you want to rent it out,  make sure you have a Commercial Lease Agreement in place that protects you from unscrupulous tenants. (Click here for immediate access)

Eviction should be done Legally

If you have to evict a tenant, make sure you use a proper Eviction Notice, requesting the tenant vacates the property, delivering control of the property back to you, and explaining the reason for eviction in plain English as there has been a breach of the Lease Agreement.

This type of properly worded Eviction Notice is available if you click here.

• The ostrich knows there is a problem to be addressed regarding the insurance needs for his (or her) property rental business, but the ostrich promptly buries its head in the sand … hoping the problem will go away.
• The naked tortoise is obviously vulnerable to many risks and will be “shell shocked” should anything happen to his (or her) property rental business.

(A)   Landlords and Insurance Companies

As the property is being rented, insurance companies have differing viewpoints as to when a tenant is acceptable and the insurance policy can go “live”.

Therefore it is important to check the following points are mentioned when in discussion with the Insurance company being considered for provision of the insurance cover(s) being requested:

(1)    Confirm that a proper rental agreement is in force (for example a short assured tenancy agreement).. often a copy will be requested by the insurance company.

(2)    Confirm that the gas and electrical systems are checked once a year

(3)    Confirm that all furnishings that you provide meet minimum requirements

(4)    Houses in Multiple Occupation (HMO) require that you have meet with the local authority and have implemented all their additional safety requirements

(B)   Tenant Types

Insurance companies find the following types of tenant as most acceptable as long as a proper tenancy agreement is in place:

• Employed
• Professional
• Retired
• Unemployed receiving housing benefits
• Students.

Please note Insurance companies are most reluctant to provide insurance cover for buildings being used as houses of multiple occupation (HMOs)  and buildings housing Asylum seekers.

(C)   Pearls of Wisdom

While the whole world struggles to contend with the effects of the recession that has hit us all in some way, it is sensible, and prudent for landlords, experienced or completely new, to have insurance safeguards in place to cover against a variety of potential risks,  known as perils.

The Perils of insurance Policies

• fire,
• lightning,
• aircraft,
• explosion,
• earthquake,
• storm,
• flood,
• escape of water or oil,
• riot,
• malicious damage,
• theft or attempted theft,
• falling trees and branches and aerials,
• subsidence,
• heave,
• landslip,
• collision,
• accidental damage to underground services,
• professional fees,
• demolition and site clearance costs
• public liability

(C)   Insuring your rental property

First of all do not rely on a normal residential household insurance policy to be adequate for the building insurance needs of a rental property.

At the very least, you must let the insurer know the property is a rental property, if you do not do this and later on you make a claim, you will find yourself whistling in the dark and your pockets will be empty!

(D)   Types of Insurance Policy to consider

Types of Insurance cover that a landlord should consider to protect the rental property, to protect the tenant and to protect the landlord!

• Landlords Building Insurance
• Landlord Contents Insurance
• Landlord Liability Insurance
• Landlords Legal Expenses Insurance
• Landlords Rent Guarantee Insurance
• Landlords Emergency Insurance
• Landlords Loss of Rent Cover
• Landlords Unoccupied Property Insurance
• Landlords Alternative Accommodation Insurance

(1)  Building Insurance for Landlords

With building insurance, it is important to give the insurance company an accurate re-building cost for the rental property.

The best way to obtain this figure is to speak to the surveyor who surveyed your property, or to check with your insurer as to their estimation of the rebuild cost for a property like your rental property.

The cost of being under insured

If your property is under insured (perhaps because you have not updated your rebuild cost in line with the increases in costs for site clearance, repair, renovation and rebuilding of damaged property) you are at risk of being in a position of being under insured and eligible only for a portion of any loss incurred.

At the time you may feel the cost of full insurance was too much to bear,  and your head goes into the sand,  only to find in the event of making a claim,  that your saving on monthly premium has turned into a huge expense!

Keeping your mortgage lender happy

The rental property that you buy may have been bought with the use of mortgage funds from a lender…. If this is the case, before the funds will be released by your lawyer, you must have a suitable building insurance policy set up with the lenders interest noted on the buildings insurance policy document.

(2)  Contents Insurance for Landlords

This type of policy is to protect the items the landlord has left in the property for the use of the tenant / renter.

If the property is “unfurnished”, normally the landlord leaves items in the kitchen such as a fridge, a freezer, and a washing machine for normal domestic use.

The tenant / renter will supply their own contents, and as already covered in my article “Renters in America want the Best Umbrellas“, it is up to the tenant / renter to arrange their own contents insurance.

Obviously if the property is let as fully furnished, then the landlord will arrange the necessary cover to protect all furnishings within the rental property.

This type of cover includes Indemnity cover for all items listed on the policy.

Please note here that if a tenant is injured due to one of your listed items, you normally do not have contents liability cover on the policy, therefore if a claim is made you will be potentially liable to pay for the damages claimed (see next section Landlord Liability Insurance).

On the day a tenant/renter moves into a property they must check and sign an inventory which confirms what items are in the property and what condition these items are in. This document can then be used a s a reference in the future when the landlord or their agent carries out a regular property inspection.

(3)  Landlord Liability Insurance

This type of insurance cover protects the landlord against claims being made in the event of the tenant / renter or a visitor to the property injuring themselves, and it is proven to be due to your building, or the contents you have left in the property, as being the cause of injury.

(4)  Landlords Legal Expenses Insurance

This type of insurance cover gives the landlord immediate access to legal experts who can put into action claims against the tenant / renter relating to:

• Unpaid rent and the costs for its recovery
• Damages to the property by the tenant/renter
• Costs of getting the tenant/renter evicted as a result of a breach of the lease agreement

The cost of legal action for any of the above areas is charged in addition to the money being claimed by the landlord.

The cost of legal action can be substantial, and is charged to the tenant/renter.

(5)  Landlords Rent Guarantee Insurance

The landlord can have a policy in place which will pay a replacement income to the landlord if the tenant/renter fails to pay rent

This type of insurance is becoming more significant as landlords are relying more and more on rental income as being an important part of their monthly pay.

It is now becoming more common that tenants/ renters are facing the threat of redundancy and not being able to pay their rent, therefore this type of insurance helps to protect the landlord from having periods of no rent.

To be able to have this type of cover, you will have to have had a reference check carried out on the tenant using an acceptable Credit Referencing Agency, and depending on the insurance company used, there are often additional requirements to be met.

(6)  Landlords Emergency Insurance

This type of insurance is essential if the landlord does not have quick access to a variety of trades people who can quickly respond to requests for repair work to be carried out.

This type of insurance covers the following trades:

• Electrical :  Emergency repairs to electrical systems,
• Plumbing: Heating or hot water supply problems and drainage problems,
• Property Repair: Security of the property and glazing repair work.

Normally this type of cover is available 7 days a week and at any time day or night.

This gives you, the landlord, and your tenant / renter “peace of mind”

(7)  Landlords Loss of Rent Cover

If an incident has occurred and there is an justifiable insurance claim resulting in you, the landlord, being unable to rent out the property, a Loss of Rent Policy will cover you up to about 20% of the rebuild cost of the building.

(8)  Landlords Unoccupied Property Insurance

This type of insurance requires you to be certain of the meaning of any “small print” in the policy wording.

If the property is empty for more than 14 days, then the cover is sometimes reduced to FLEE cover (Fire, Lightning, Earthquake, and Explosion). Some policies keep you on full cover for 90 days… so check the “small print”

(9)  Landlords Alternative Accommodation Insurance

Should you make a claim for an insured loss, and your property is uninhabitable, you could be held responsible for providing alternative accommodation. If the cost of this alternative accommodation is more than the monthly rent being paid by the tenant / renter, then this will cover the excess amount.

The above is a summary of what types of insurance policies landlords should be thinking about for their property rental business.

Cost is a factor which prevents people taking out insurances,  hoever,  it is certainly worthwhile looking at this article again and deciding which types of policy are most important to you and your property rental business.

Insurance for your renters and their personal possessions.

Firstly let me ask this question……

Would you buy an umbrella if it didn’t keep you dry? … I wouldn’t!

We all know that insurance is a good idea, because it gives you peace of mind.

The people who rent from you,  and live in your rental property,  deserve to have the opportunity presented to them of being able to obtain the insurance they need.

They deserve the chance to have proper insurance cover, ensuring they are completely covered (and kept dry).

What is the reason for renters insurance cover?

Quite simply put, renters with the proper cover in place are provided with protection for both their personal well being, and their financial well-being.

Without warning events happen totally outwith your control.
In the blink of an eye your life can change so dramatically. What you once thought was safe and secure … suddenly is gone.

Renters personal property may be worth more than they realize

Renters Insurance must contain sufficient benefits so as to provide a completely tailored policy.
This then will ensure that the particular potential insurance needs of every renter is taken care of.

Easy to use and quick decisions maketh the Company!

For quick answers to the type of cover most suited to a renters circumstances and budget, an insurance company should have access to the technology that will give new clients immediate access to a no obligation, easy to use renters Insurance Quote System.

After a few clicks of your keyboard, it should be possible to see just how affordable rates are……
for example complete cover can start from as little as little as $16/month for $15,000 worth of coverage.

Renters don’t need Insurance! .. and it’s never going to rain!

Many people who rent think they don’t need renter’s insurance.

The truth is that many of the daily concerns renters face are no different from those confronting the average homeowner.
A renter is still at risk of losing all their possessions to fire, burglary, theft, storms, water damage, and other unexpected perils.
As a landlord, or real estate owner, the chances are that your own property insurance policy will most likely not protect a renter in the event of them losing all their possessions.

Renters in America need the best umbrellas!

Renters deserve to have access to a company that can offer a comprehensive Renters Insurance package for anyone who rents a home. This can be a house or an apartment.

What are the 3 main problems long associated with US Homeowners Insurance?

• High fixed costs
• Limited distribution
• Minimal technological innovation

What should the American Home Insurance business provide?

Expert catastrophe management systems… in other words, consumers want access to

• Industry leading technology
• Quality Insurance products
• Outstanding customer service
• Low premiums
• Nationwide coverage

In a stroke of a pen renters can open their umbrellas!

The service and cover a renter needs can be found through a company called Homesite Insurance, and their Renter’s Insurance policies.

Get a Renters Insurance Quote and Purchase a Policy Online in Minutes

Their policies are designed to
• protect renter’s personal possessions
• protect against any personal liability
• provide renters with assistance if the home they are renting is damaged due to a loss.
• Homesite renter’s insurance policies are based on the ISO HO-04® and provide coverage for personal property.

Ok.. Who are Homesite?

Homesite is a company that was founded in 1997, and focuses exclusively on two specific markets:
• Homeowners insurance
• Renters insurance

Are they stable?

Solid financial stability and extensive management experience provide the foundation for Homesite’s comprehensive coverage and exceptional service.
The equity financing for Homesite was arranged by Morgan Stanley Capital Partners, the private equity group of Morgan Stanley, the global financial services firm.

Are Homesite acceptable to lenders?

Homesite has an A’ (A Prime) Unsurpassed Financial stability rating from Demotech, a firm whose rating is accepted by mortgage companies and acceptable for use by Fannie Mae and Freddie Mac.

You can lead a horse to water.. and you can make it drink!

At the very least, and as a responsible landlord, you should be offering all your renters the chance to consider taking out a renter’s insurance policy.
You could make the insurance policy payment each month a condition of their lease, as it is in their own interest to protect their personal possessions from all the hazards associated with owning a whole variety of “things” which form each person’s personal possessions list.

Cost is always a factor, and renters will have to weigh up the cost of having the insurance and peace of mind it gives them, compared to not having the insurance and facing complete loss should an insurable event occur ( like fire damage, theft of items or storm damage).

When the rain starts it’s always good to know you can get complete shelter under a good umbrella!

Get a Free Renters Insurance Quote,  and surprise yourself at the low cost!

Your lawyer will make sure it is understandable, lawful and contains the correct terms and conditions.

This can save so many complications in the future.

This article is for both landlords and tenants to read.

It does not cover every aspect of a rental agreement,  however,  it does give important “pointers” in a number of key areas.  The areas covered in this article include:

Read then sign  ..  USA Renting  ..  Rental Agreement choices  ..  Missed rental payments ..  Tenant living at the property  ..  Tenant not living at the property  ..  Effect of unpaid monthly rental payments  ..  Deposit / Bond monies  ..  Utility providers  ..  Pets  ..  Guests

(1) Read then sign

It is always best practice to ask the tenants to read each page of the contract and sign each page, thereby confirming they have read and understood all the terms and conditions contained within the lease contract.

(2) USA renting .. Interesting point to remember

If you are renting in the USA,  it is a legal requirement to make sure that the tenant is made aware of any lead based paint in your property ( for buildings constructed before 1978 ) and they must sign a “disclaimer” which confirms they understand the fact that lead based paint is in the property and they are comfortable with this.

(3) Rental Agreement choices

Normally owners have a choice between two types of rental agreements when renting out their property

(a) The Rental agreement

(b) The Lease Contract

(a) The Rental agreement

You will find that with this type of agreement, there is not a length of residence requirement, as the agreement runs for only one month at a time.

At the end of every month, changes to the rental agreement can be requested to be made by either the tenant or the rental property owner.

• One of the main reasons for a change in the rental agreement is the owner wishing to increase the rent.
• Another common reason for wanting to change the rental agreement is a request by the tenant to leave the property.

All changes to the Rental Agreement require a notice period of 30 days.

Due to the short term nature of this type of agreement, it is best used for a property where it is difficult to find a long term tenant, for students or for people who travel a lot with their jobs and require only short term rentals.

(b) The Lease  contract

This is a much more specific type of contract and specifies a set time period for the contract to run and should detail the following information:

It should indicate a specific period of time for the lease.

Normally the initial period of a lease is 6 months, with the option to renew after this period of time.

Some people want more secure timelines, and, if the landlord agrees, they can have a 12 month lease.

Whatever time frame is decided upon, from the outset, until the lease expires,  both parties must adhere to all the terms and conditions contained within the lease rental contract.

During the tem of the lease, the terms and conditions cannot be changed.

A 6 or 12 month (or even longer timeline) lease gives both the owner and the tenant a stable situation, and peace of mind.

If a mortgage is in place with the property,  a long term lease helps provide the owner with the security of knowing that there will be rental income each month for the agreed period of time.

(4) Missed rental payments

It is always necessary to point out to tenant the consequences of not paying their monthly rental payments during agreed time frame of the lease contract.

(5) Tenant living at the property

When a tenant is living in the property and not paying rent, the owner/landlord is entitled to get the tenant evicted, and then purse the tenant through the courts for unpaid rental payments plus all legal expenses incurred.

The legal costs can be quite substantial in addition to the missed rental payments.

(6) Tenant not living at the property

In a situation where a tenant has moved elsewhere before the end of the lease contract, the tenant is still liable for the monthly rental payments. Failure to fulfil the payment terms contained in the contract will lead to legal action, as described above.

(7) Effect of unpaid monthly rental payments

Should eviction and court action take place, the tenant will be faced with detrimental entries on his/her credit file,   thereby affecting all types of future financial transactions.

So, the moral of the story is for tenants not to miss their rental payments.

If their financial circumstances change, it is always best for the tenant to approach the landlord/owner and explain the situation.

“A problem shared is a problem halved”.. and some kind of compromise may be possible.

(8) Deposit / Bond monies

On the day the lease contract is signed the landlord will expect to be paid 1 months rent plus a deposit (sometimes called a Bond) . This Deposit / Bond is to be no more than month’s rent and should be acknowledged immediately by the tenant being given a receipt. The receipt should clearly state the amount paid and the date the Deposit / Bond was paid.

In the USA, the Deposit / Bond money must be lodged with the Office of Rental Bonds. If the Deposit / Bond money has not been lodged within 2 weeks by the landlord, with the names of everyone who has contributed to the bond; then the tenant can obtain an order from the residential tenancy tribunal which will force the landlord to pay the bond to the Office of Rental Bonds.

(9) Utility providers

Normally the landlord will have the property with a particular utility company for your heat and power and telephone needs.

If you know of less expensive or more efficient utility companies, tell the landlord, and request a change.

It takes a matter of minutes to change to a different utility company,  and doing this can save you a considerable amount of money over the term of your lease contract.

If you think about it,  you are paying these bills, so it makes sense to find the best deal whilst you live in the rental property.

(10) Pets

If you have a pet, or pets, it is always most prudent to check with the landlord at the outset of the rental property lease, whither or not pets are allowed.

(11) Guests

This may seem strange, but if you are expecting a friend is going to be staying a long time at the property, and they are not on the lease, it is always a good idea to tell the landlord beforehand and make sure he is okay with this.

…………………………………………….. end of the article ………………………………………………….

The next article will look at a successful Real Estate Entrepreneur and what he can offer my readers!