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|Using a good lease agreement is an important factor in being a
successful landlord, on par with doing adequate tenant screening and
making careful selection. A large percentage of landlords fail to use
adequate lease agreements and this fact results in unnecessary disputes
and other problems for them.
Leases should always be in writing and should include enough detail as to minimize the risk of misunderstanding. Leases should not include any illegal or unenforceable clauses. Landlords should utilize supplemental documents of co-signer/guarantor agreements, rules & regulations, and move-in/out checklists.
The lease agreement should be adequately detailed and cover all issues of importance to the particular property. It must include tools for enforcing timely payment of rent and provide for proper management of the property,
Existing lease agreements can be of importance when considering purchase of an income property. For a number of reasons they are of particular importance for commercial properties.
A landlord should know and thoroughly understand all terms and conditions of the lease agreement used and the document should be continually improved as deficiencies are noticed and as new problems are encountered.
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