Landlord Tip- Rental Agreements

Let us start with the basics. What is a Rental Agreement? A Rental Agreement is a binding contract between a Landlord and Tenant. At minimum, the Rental Agreement identifies the parties, the property, the term of the rental and the amount of the rent.

One of the best ways to protect yourself as a Landlord is to have a well written Rental Agreement. But many Landlords still use a basic Agreement, and do not update their Rental Agreement as Tenant/Landlord laws change. 

Here are our tips to creating a strong Rental Agreement, to protect your investment property.

Written Agreement: This sounds like a no brainer, but put your Rental Agreement in writing. Some Landlords still allow a tenant to move in with an oral agreement. An oral agreement can be binding for a tenancy less than 12-months, but terms can be hard to prove without written documentation. 

Terms: Ensure that your Rental Agreement clearly outlines the terms of tenancy. Some terms to consider are Late Payments, Security Deposit, Subletting, Pet Policy, Maintenance, Utilities, Parking and Access to Premises.

Addendums: In addition to the Rental Agreement, you want to make sure you have additional addendums to protect your investment property. Certain addendums, such as the Lead Based Paint Disclosure, Bed Bug Addendum and Flood Disclosure, are required by law. Additional addendums you may need to consider are a Pet Addendum/Service Animal Addendum, Pool Addendum, Mold Addendum and Satellite Dish Addendum.

Property Rules: Every property can have differing community rules. It is a good idea to have a Rules and Regulations Addendum outlining the specific property guidelines. This addendum can cover items such as laundry room hours, smoking policy, noise disturbances, criminal activity, and storage policies. 

Rent Control: California introduced rent control state-wide on January 1, 2020 and effective July 1, 2020 Landlords are required to include an addendum in the Rental Agreement, outlining California Rent Control and Just Cause Eviction. Failure to properly notify your Tenant that a property qualifies as being exempt from Rent Control can result in your property adopting rent control terms.

Whether you are a first-time landlord looking for assistance, or an experienced investor looking to improve your contracts, California Oaks has Property Management Services tailored to assist you. Contact our office today for more information!