A Guide To Essential Lease Rules
As landlords welcome new tenants into their units, it’s crucial to set boundaries and rules so that your unit stays in good shape and your other tenants are happy, too. If you choose not to write out the specifics of your expectations for your tenant, all bets are off, and your tenant could potentially wreak havoc on your apartment and your other renters. By laying out lease and rental house rules and their consequences when broken, then having your tenant sign to agree to the terms, you can ensure that your tenant will behave in your unit.
What Lease Rules Should Be in Your Rental Agreement?
It’s good to create boundaries for your tenants when they’re preparing to rent a unit from you, but what specific standards should you set in your lease to protect your property (and your business)? There are many rules to consider, but a few are standard in the rental industry, and you should consider these rules carefully for every lease (although you should also ensure that specific needs related to your property are met by including custom house rules). Let’s dive into a list of ten essential lease policies to include in your rental agreements.
1. Paying Rent on Time
As a landlord, your number one priority is receiving rent payments on time. Tenants paying their rent each month is what keeps your business running, after all. When managing properties, you have the added control over how your tenants pay and when. Make sure to include your parameters in your lease. Specify what day rent is due (usually the first of each month) and the consequences if rent isn’t paid on time — do you offer a grace period when personal issues arise, and for how long? Do you charge a late fee? How much? After how many days?
You can also select your preferred method of rent payment to best fit your needs, like ACH payments if you’d rather be paid digitally or checks if you favor traditional payment. Details like instructions for online payment or a required postmark date on a check should be included in the lease, as well as the amount of any security deposit you charge.
2. Pet Policy
Pet policies are a rule that you have total control over. It’s up to you whether Timmy the Turtle or Duke the Dog are allowed onto the premises of your rental property (though service and emotional support animals are a required exception). If you do choose to allow pets, set standards for what you expect, like the number of pets, breed or weight restrictions, and any extra pet fees you’ll expect on top of rent.
No matter your decision, your policy on pets should be included in your lease terms so you don’t end up with unwanted animals in your units who may cause excessive noise or damage to the property.
3. Subletting
Subletting can come with pros and cons, but you should always include in your lease whether subletting is allowed. On one hand, it can guarantee paid rent, even when your tenant is traveling or moving for an extended period, but on the other, it takes away a level of control over the rental process. If you do decide to allow subletting, add the expectation to your lease and include a rule that involves you in the subletting process so you can approve the new tenant before they move into your current tenant’s unit.
4. Renewing a Lease
When writing a lease agreement, it’s important to include your process for lease renewal. Typically, a landlord will send the tenant renewal terms 90 days before the original lease is set to end. The tenant then has ample time to respond, either with an agreement to the renewal terms or with their intent to move out. In your lease, specify when renewal terms will be sent to the tenant and how long they have to respond (always before the original lease’s end date).
5. Breaking a Lease
Though not ideal, a tenant may sometimes want to break a lease, and you should plan ahead for the situation in your lease so you and your tenants know the corresponding procedures. Different situations call for different rules, like what the consequences are for unpaid rent, excessive noise, a hidden pet or roommate, or simply moving out early. Decide when an eviction is necessary or how much notice a tenant needs to give before leaving (but, always consult your state and local tenant-landlord laws to ensure these policies are compliant with local regulations).
6. Renters Insurance
Requiring renter’s insurance is extremely common but isn’t always included in lease rules. It’s generally a good idea to have your tenants purchase a policy, though. Renter’s insurance not only benefits your tenants since their belongings will be protected but will benefit you, because responsibility for your tenant’s items is given to the insurance company so you don’t get angry calls from a tenant about belongings you’re not liable for.
You don’t have to add renter’s insurance as a house rule, but letting the insurance company handle claims in the case of damage to your tenant’s belongings is a weight off of your shoulders that you should consider.
7. Maintenance Requests
A good rule to include on your lease is information about how to handle maintenance concerns. You should dictate which maintenance issues should be covered by the tenant and which you should be alerted about. You should also explain how or where maintenance requests should be reported as well as who to call when a maintenance emergency arises so that the problem can be addressed promptly.
A good way to keep maintenance requests in order is through Innago. We offer a maintenance management tool to keep tickets organized and allow status updates as the problems are solved so you never have to worry about an apartment fix.
8. Alterations to Unit
Many tenants, especially those planning on living in your unit long-term, will want to add a personal touch to their space, which often means hanging photos and paintings or painting walls. Most landlords allow wall decorations that require nails in the walls, but the amount of change allowed in the units is up to you.
If you choose to allow tenants to paint rooms of a property, it’s a good idea to approve the color before it’s on the walls. Some landlords even elect to create a list of pre-approved colors that tenants can pick from. Whatever you decide to allow in your units is up to you, but make sure to make your rules clear for alterations and for how the apartment should be left. Usually, this looks like holes being filled and walls painted back to their original color.
9. Illegal Substances
Obviously, illegal substances should have no place on your property, but some tenants will bring substances anyway. It’s crucial to emphasize in your lease that the consequences for having illegal substances in the unit can be staggering, including eviction if caught. “Getting caught” doesn’t only have to be by police, either. If you inspect the apartment and find illegal substances, or if a neighbor approaches you to tell you about it, the tenant can still face consequences.
10. Lease Violations
Every house rule will have a different consequence, but it’s helpful to include a general rule about the repercussions of multiple or serious infractions of the lease. Of course, if a tenant’s rent is a day later than your agreed-upon due date, the answer isn’t eviction. But what if their rent is late, they’ve gotten a multitude of noise complaints, and they’ve been hiding a pet for the last six months? Reiterate in your lease that lease violations can lead to serious consequences, up to and including an eviction if necessary. Detail the extent of the consequences in your lease agreement.
11. Airbnb and Vacation House Rules
If you own a vacation rental or an Airbnb, you know how important it is to clearly list out vacation rental house rules so your property stays in good shape for every guest. Vacation rental rules are especially important since you’ll have high turnover and many different guests throughout the year.
It’s a good idea to write down a list to give to your guests with your expectations to eliminate any confusion (and to protect yourself later if someone causes damage and claims they weren’t aware of the rules). You should consider vacation house rental rules regarding parties, noise curfew, rearranging furniture, illegal substances on the property, lost keys, etc. Address each of these topics in your vacation rental agreement so that essential house rules and expectations are clearly defined for all parties.
Can a Landlord Change Rules in Mid Lease?
The above rules are a foundation for things you should consider for your leases, but can a landlord change rules in mid lease? The short answer is no. According to the American Apartment Owner’s Association, changes can be made to property or house rules, like best practices in common areas or where to drop your trash, but big changes that affect your tenant’s daily life or break the conditions of your original rental agreement, like deciding overnight to charge $500 extra for rent each month, cannot be required without a lease amendment. To make an amendment to an active lease, you would need to write up a document to modify the terms of the lease and bring it to your tenant to agree to and sign — the amendment only becomes legally binding with the tenant’s signature.
Conclusion
Not all lease rules will apply to your situation depending on the type of housing (like a rule about common spaces if there aren’t any on your property). Consider what you value in a tenant and what rules you expect them to follow, and don’t underestimate the power of seeking an attorney to confirm that your lease terms are fair. Whether you’re writing vacation house rules, college apartment rules, or single-family home rules, this list will be helpful in building a foundation for a respectful, well-maintained tenancy and smooth property management.
