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Tags: finance, leasing, lease agreement
 A couple of years ago, you’ve acquired a house and lot a few blocks from your home. The said property is one of your biggest investments so far. You have the intention of giving it to your only child when the right time comes. For the mean time, you’re thinking of making a profit out of the property.
Leasing would be your best option. You already contacted some friends to advertise the lease. In that way, the invested money can be recovered. You may not be able to get even with getting the total amount, the monthly rental revenue can assist you with your finances. Then expect to receive lots of inquiries about the house.
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Of the many applicants, choose the prospective lessee whom you can trust. It is always advantageous if you’re comfortable with the people staying in your property. A very important thing to do is to draft a lease agreement. The said document will state all the terms of the rent and the related rules and regulations in using the property.
The agreement will reflect your conditions as a lessor. If the lessee will agree, then the deal will be closed. In writing a good lease agreement, you should know first the laws on leases. Every state has different laws regarding property management. You should as well do a research on the topic.
It’s to your advantage anyway; you’ll know all the rights and privileges of being a lessor. The statute will put limitations on your agreement. The law protects the side of the lessee too. Not all benefits should be on your part. You’ll know for a fact the terms which you can include in the agreement.
Do make sure the document can be read and understood clearly. It is better to have it in print form. Using your own handwriting can sometimes be confusing. Some people can’t understand your text. Make it a point to use simple language- slang words are a no no. The condition of the property should be stated too.
Descriptions should be specific; it will depend on the present condition of the said property. The terms regarding the furniture and fixtures, if there are any, should also be incorporated. Maintenance can be an issue too. Its either your obligation or you can pass it to the lessee- the option is yours.
You can’t avoid that some are pet lovers. If you can’t stand animals in your land, tell them frankly. Your beloved garden is at stake- some pets do enjoy destroying some plants in within the area. Be concise with your terms- write them down. Your policies regarding the monthly payment are essential.
You and the lessee should come up with this understanding. State the deposit that you require. The date of payment should be evidently stated to prevent misunderstanding between the parties involved. The do’s and don’ts on how to use some amenities must be acknowledged by the lessee. In case of breach of agreement, you have all the rights to let them vacate the house.
Having idle properties can be very beneficial. You can generate extra cash by lease or better yet make leasing your business. Steady income will flow to you every month without too much effort on your part.
About the author
The author of this article Rick Goldfeller is a successful underground Financial Analyst who has been advising and coaching individuals for many years. Rick recently published a book on how to manage your money and attract Wealth and Financial Freedom. More info on his Finance Planning course is available HERE.
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