Is It Time to Update Your Rental Agreement? 3 Signs That it is Time to Review Your Lease
All around the country, spring is known as a transitional season for both real estate investors and tenants alike. The real estate market tends to pick up in March and continues to rise throughout the subsequent months, resulting in a greater number of real estate transactions, and an increased number of tenants who are looking for places to rent.
In the spring time, college students are packing up for the summer, causing many lease terms to come to an end, it is common for property managers to take advantage these new found vacancies, and warmer weather to renovate and update their properties, This is also the time of year when many landlords and property managers take some time to review the terms of their rental agreements while “in between” tenants. By taking some time to review, and update your contract can help to protect you against the liabilities that can come with an outdated lease.
Many novice property managers or landlords only think to review their lease when a new tenant moves in, however, there are also a variety of other situations where it is important to review your rental paperwork.
You are Allowing Your Tenant to Sublease Your Property
When it comes to a tenant subletting your property, it is important to remember that not only does the tenant need your permission to sublet, but it is critical to specify in the rental agreement that you are consenting to the subletting arrangement. If your tenant is assigning all of their lease rights over to a third party, it is crucial that there is a written record of you granting your permission in order for them to legally do so. It is crucial that landlords, real estate investors and property managers a like completely understand that changes to the master lease cannot be made if it is a fixed term and it is being transferred to an assignee.
Changing Lease Terms
In order to properly amend lease terms – including fixed or automatic renewal, you will need to change the rental terms in your lease before a new tenant moves in. It is best to state clear rental terms as this will prevents your tenant from skipping town on account of you having no record of a fixed date, or because you had no written proof of this agreement. If you wish to change terms during a lease, you must get the approval of the tenant before doing so.
Tenant-Landlord Laws
Regardless of what has led you to where you are now, whether you have gotten yourself into trouble by not adhering to legal regulations, or you noticed your methods were either more strict or casual than practical it is absolutely necessary to confirm that your lease is legally binding by regularly reviewing the tenant-landlord laws within your state/region’s laws.
In between renovations, upgrades and new tenants, you should always ensure that your lease reflects your current rental situation. It is nobody’s responsibility but yours to keep up with the most current laws, as well as any other changes that could impact your investment property.