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Lesson 4
Forms & Agreements Landlords and property managers must utilize a large number and variety of forms and agreements. The first line of defense against bad tenants is having an adequate application form. An adequate form is one that requires the applicant to provide information that can be used to verify his identity, obtain a credit report, verify employment, contact previous landlords, and do a criminal background check. And, the application should contain a clause specifically stating that the applicant authorizes you to do all these things. The application should also warn that failure to provide all items of information being requested (unless not applicable) is grounds for not considering the application. We suggest that the following information be requested on an application:
Several sample applications are available on the RHOL Forms Web It is also a good idea to provide an information sheet attached to the application form that explains the procedures related to your processing of the application. Included might be (1) that you will perform credit/criminal checks, (2) the amount of non-refundable fees to be charged for processing the application, (3) the income and/or credit score that is required, (4) that the successful applicant must pay the security deposit and first month rent by cash, money order, or cashier's check and within a certain time period after notification of acceptance, (5) that pets are or are not allowed and, if allowed, any restrictions and/or pet deposit, and (6) the size of deposits that the applicants should expect may be required by utilities. Leases Contrary to popular opinion,
there is no legal difference between a Lease and a Rental Agreement. We
won't attempt to cover all aspects of all types of leases here, as the subject
of Leases could be an e-course in itself. The subject of Leases must be
divided into the categories of Residential and Commercial because the two types
are significantly different in many respects. Commercial could be further
into several sub-types, e.g., office, retail, and industrial.
Leases also often have the following special clauses:
Residential leases usually have the following clauses that are usually not part of a commercial lease:
Commercial leases usually have the following clauses that are usually not part of a residential lease:
In addition, commercial leases often include the following subsidiary documents because the tenants are often corporations or other limited liability entities:
These items should also be of concern for a residential lease in the rare case where the lessee is a limited liability entity. Checklists A checklist should be used in selecting a tenant from among the applicants. Having a written procedure both insures that items are not forgotten and provides protection against charges of discrimination because the same procedures are applied to all applicants. A checklist should always be used at both move-in and move-out. Their use is mandatory for residential rentals in a number of states. The RHOL Forms Web has several examples of Checklists, but, if you are willing to take time to do the job right, we highly recommend the use of a form that separately covers various aspects of each room and other areas in detail, such as the one named Super Checklist. Whichever version you decide to use, it is recommended that the list include the following:
If the unit is furnished, as vacation and other short-term rentals usually are, the checklist must include a detailed inventory of all furniture, small appliances, tableware, linens, etc. Letters Landlords and property managers
have need of a variety of letters. By letters, we mean notices given to
tenants for information purposes rather than to initiate some legal action.
Although it is not expected that these documents will end up in Court,
they occasionally do, so care should be taken in their drafting and delivery.
Items in this category include the following:
Examples of these letters are available on the RHOL Forms Web Legal Notices Under the category of Legal Notices, we include those documents that are used to initiate a legal action or process that might ultimately move into Court. Included in this category are:
In most cases, the initial notice to pay rent or quit (3 to 10-day notice) can be generic like the ones on our Forms Web. However, if the Court provides this form, it is recommended that you use it. Court Forms Court Forms are obviously those documents that are submitted to a Court to initiate or continue a legal action. Included in this category are:
While we provide samples of some of these forms on Web site, we recommend that, whenever possible, you use a form provided by your local Court for eviction lawsuits. Judges like to see evictions filed on their Court forms so that they do not have to read every word for statute compliance or legal accuracy. When you use the form they provide, the judge only has to glance at the form to see that the appropriate boxes are checked and then read what is entered on the blank lines. The summons and complaint absolutely MUST comply with your states court rules. Even if not absolutely mandatory that the Courts forms be used, you should always use their forms because:
Miscellaneous There are also numerous forms related to bookkeeping or general record keeping. Bookkeeping and accounting are covered in Lesson 2. General record keeping forms might include:
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/Rental
Agreements
