As Charlotte property managers, we meet with each new tenant and review the rental lease packet (lease, maintenance addendum, move-in inspection form, and, if applicable, the pet addendum) with them before we both sign it. We even send the lease packet via email to the tenants a week before move-in so they can review it and ask any questions prior to our meeting (before they potentially sign their lives away!).
This brings up the million dollar questions-
1. Is this largely a
waste of time?
2. Does anyone really
read through up to 13 pages of legalese gibberish?
3. Is it necessary to
send it to them for early review and then go through it in person?
Answers:
1. No… it only feels like it sometimes…
2. Some actually do read
all of it and are prepared with questions (10% - 20%)
3. Definitely!
Why “Definitely!”?
I like sending the lease to the tenants for early review. In the United States , ignorance is no
excuse for breaking the law. Providing a
clear, reasonable path for tenants to digest, question, and understand the
expectations of their lease agreement is a good thing. This shifts the onus on knowing the lease
from reasonable negligence (“I saw the lease for the first time when we sat
down to get the house keys! If I didn’t
sign it, I wouldn’t have a place to live!”) to passive acceptance (“Hmmm… It
was provided to me, but I chose not to read it over…”).
In terms of reviewing the lease in person with a new tenant, I
don’t think it is necessary to go over it point-by-point. Most of the things in the lease govern what
would happen in worst-case scenarios; being able to answer any questions the
tenants have about obscure items in the lease should suffice. However, the following three things that make
for a good tenant should be spelled out (and if the tenant screening is done
correctly, we’ve already checked on these during the application process):
1. Good tenants pay in
full and on-time: this is why we do
credit checks (do they pay other people on time?), landlord checks (did they
pay their previous landlords?), and employment and income checks (can they
afford the place?)
2. Good tenants maintain
the house: this is why we do landlord checks (did they keep and leave their
prior place in good shape?) and include the maintenance addendum (the things
they need to do to keep the house up- change air filters, mow the lawn, etc.)
3. Good tenants get
along with their neighbors and society at large: this is why we do criminal
background checks, landlord checks (did you have any issues during their rental
period?), and pet addendums (if your pet does things we don’t like, we can
legally ask you to remove it from the home within 48 hours)
If you can narrow the focus to the lease signing (and tenant
screening) to these 3 points, you should be in for an enjoyable tenancy!
Brett Furniss is President
& Owner of BDF Realty (Charlotte Residential Property
Management), the trusted real estate advisor for Charlotte
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