Essential Lease Agreement Clauses Overview

Aug 9, 2024

Top 5 Lease Agreement Clauses for Property Management Companies (Part 2)

Presented by Mark Cunningham, Grace Property Management

Introduction

  • Follow-up to a previous video on top 5 lease agreement clauses.
  • Focus on additional crucial lease clauses for property management.

1. Access to Property

  • Importance of access clause in lease agreements.
  • Example clause: "Agents may enter property for any inspection purposes with a 24-hour notice to tenant."
  • Ensure reasonable notice is clearly defined.

2. When Rent is Considered Late

  • Importance of specific deadlines for late rent.
  • Example clause: Rent is late if not received on or before 12:00 PM (noon) on the third day of the month.
  • Benefits: Clear cutoff time allows for efficient processing of late notices.

3. Utility Transfers

  • Challenges of transferring utilities for new tenants.
  • Example clause: Failure to transfer utilities within three days of the lease start date results in a charge of X dollars per bill.
  • Aims to ensure timely transfer of utilities.

4. Multiple Residents (Joint and Several Liability Clause)

  • Importance of holding all roommates jointly and severally liable.
  • Example clause: Each resident is jointly and severally liable for all lease contract obligations.
  • Ensures legal ability to communicate with one tenant as representative of all.

5. Damage Reimbursements

  • Procedure for charging tenants for property damage.
  • Example clause: Within 30 days of notice, tenant must reimburse for loss, damage, repair, or service calls caused by improper use or negligence.
  • Allows property management to bill tenants for damages and ensures reimbursement within 30 days.

Current Events and Announcements

  • "Pulling Back the Curtain" event in Atlanta, January 2019.
    • One-day session with optional second day.
    • Small, intimate event.
  • Individual one-on-one coaching opportunity opening up next month.

Conclusion

  • Review and update lease agreements to ensure they include essential clauses.
  • Aim for a strong, healthy relationship with tenants.