Quick Guide in Making a Basic Lease Agreement

House for rent

Property managers provide a basic lease agreement whenever there’s an unexpected tenancy. Since the preparation time for the upcoming tenancy is short, property managers needs to make a quick decisions and documents.

However, even if you’re only providing a basic agreement, it should contain important information. Do you know what information it should include? In this blog post, I’ll talk about a guide in making a lease agreement.

What to Know about a Lease Agreement

Signing the lease

It’s your responsibility as a property manager to provide an agreement to your tenant. That’s why you need to know how to make the best agreement for the tenancy. Before we go into that part, let’s take a look at the definition of a lease agreement first.

What is a lease agreement? A lease agreement is a contract between you and your tenant for using a property. This document contains the necessary information about both parties and the property. Before the tenancy begins, you and your tenant must sign a lease agreement. Once signed, the agreement will prove that both parties have agreed on a set of terms.

With that, you must create a physical lease agreement and give your tenant a copy. If either party refuses to have a written lease agreement, they are still responsible for their obligations. However, you need to be careful in dealing with tenants who refuse to have a written agreement. A verbal tenancy agreement will lead to several problems once a misunderstanding occurs. That’s why it’s advisable to provide even a basic agreement that contains the following information:

  • The full names and contact addresses of you and your tenant (include email address and mobile telephone number).
  • The address of the property that is being rented.
  • The date of the tenancy begins and the agreement is signed.
  • Addresses for service for both the landlord and the tenant.
  • The rent amount and regularity of payments.
  • The place or bank account number where the rent is to be paid.
  • Any fees (for a letting agent or solicitor) to be paid (if applicable).
  • A list of any chattels (like furniture, curtains and other fittings) provided by you.

If the tenancy is a fixed-term, include the termination date. There are other clauses and terms you can add to make it the best agreement for the upcoming tenancy.

If you are on the other end of the agreement and your credit history is being dug into you may want to consider credit repair services to both remove incorrect and outdated negative items on your credit reports and to increase your overall credit score to a point that landlords and property managers will be more comfortable renting property to you.

Once you’re done with the terms, the next thing is to check the spelling and grammar. A lease with poor grammar, bad punctuation, and misspelled words can cause for misunderstandings. Aside from that, having an error in the lease agreement shows a lack of professionalism. This could result in bad impressions and it could drive away potential tenants.

A property manager needs to consult a rental lawyer before finalizing the lease agreement. The rental lawyers can improve the agreement to make it suitable for the upcoming tenancy. The lease agreement must be free from errors; it’ll be a legal document once it’s signed by both parties.

Another reason for consulting a lawyer is to make sure the agreement will give you adequate protection if any problems arise. The agreement could protect you or the tenant if ever your misunderstanding is brought into court.

A tenant could still lease a property without an agreement. However, a verbal agreement may lead to some problems in the future. That’s why it’s suitable to provide even a basic lease agreement to your tenant and consult a lawyer before finalizing your lease agreement.

 

Improving Profitability of Commercial Real Estate

Commercial Real Estate

Do you want to earn more profit from your rental property business?

The rent collected from your tenants of a commercial real estate business can be the source of your income. If you’re not strategically sufficient, you’ll be stuck with a “good enough” profit.

To get the best from your commercial property, you should make it profitable. Adding various amenities and giving incentives to your tenants would help you achieve this. You can also increase rent from time to time, but there are also other ways to earn more profit in your business.

A commercial real estate is also known as a commercial property, investment, or income property. It refers to a buildings or land that is intentionally made to generate income. The generated profit can be either from capital gain or rental income.

Commercial properties are designed especially for commercial businesses. These properties are to be rented, and used for business operations. The property owners gain profit from rent. And the commercial tenants earn profit from their business or clients. Here are tips for landlords and property managers to be advantageous in increasing rent.

Choose an In-Demand and Convenient Location

When buying a property, always choose places that are located in more desirable areas. Commercial business owners will pay more if the property is in a “hot” location for their business. Tenants often choose rental properties that are built near their clients.

Buy a property in an area that’s currently being developed. This time, you can get a better deal on the purchase price compared when it’s fully-developed.

Set the Profile of Your Target Tenants

It is important for the property managers of to set their target tenant profile first. Having a specific target market can help you plan your location beforehand.

Targeting young professionals requires your property to be in an area with good transport links. This means that your commercial property should be near in the decent bars and restaurants. But, if you’re targeting a family market, choose areas with green spaces and good schools.

 

Provide Your Tenants’ Needs or Wants

Providing your tenant’s needs and wants is a sure way to attract the right clients at your named price. Try adding modern convenience to your commercial property. Most tenants often choose places where they can enjoy lots of amenities.

Consider adapting “Build to Rent schemes.” By doing this, you offered your tenants with luxuries from WiFi to wine fridges. In fact, this is currently trending to rental properties.

Regularly Evaluate Whether You Should Increase Rent

Always check the average rate of commercial property rent in your area. Decide if you think about increasing the rent in your property. Never hesitate to increase your rent if it’s necessary. Your rent should reflect your area’s improvements as long as you’re reasonable in setting higher rents. Just make sure not set it too high or too frequently you’ll end up losing tenants. As much as possible, property managers should build good relationships with their tenants.

A good relationship with your tenants could also benefit you in advertising your property in the long run. When tenants are satisfied with your property management, they’ll tell this experience to their friends and relatives.

Reward Tenant Incentives

To attract more tenants, tell people that you give incentives and perks to your tenants. By doing this, it can make your rental units stand out. People always love the idea of receiving something for free.

An effective property manager must monitor everything in the property. You should have a bird’s eye view of your units at all times. Doing this will help you track your rental units and lease agreements. It will also increase your property’s security.

A commercial real estate is specifically made to earn profits either from capital gain or rental income. Property owners gain profit from rent while commercial tenants earn profit from the business or clients.

Managing a commercial property needs you to ensure you’re earning more through increasing rent. However, a property manager can’t just increase the rent. The rent increase should be reasonable to avoid losing tenants.