Hello World! Welcome Friends! Landlords normally tend to have tenants in unique situations that require some flexibility in lease terms in the ever-changing world of property management. From military personnel protected by the SCRA eviction provisions to professionals on temporary assignments, these special circumstances demand a tailored approach to leasing.
This article aims to help landlords build lease customizations to address these special tenant needs while preserving rental investments.
Tenant Understanding
Before you create a specifically tailored lease agreement, you should know what your tenants actually require. Permanent Change of Station (PCS) orders commonly require military personnel to relocate frequently.
Others will be away for longer time periods for work, sabbatical leave, or family care. Determine what prospective tenants will need in terms of lease terms and then engage them in an open conversation about their unique circumstances.
Flexible Durations
Allowing flexible lease terms is one of the simplest ways to accommodate tenants with special circumstances. For maximum flexibility, go with the standard 12-month lease, although doing so year-round can be a little awkward. Offer month-to-month leases for tenants who know they will need to be relocating soon. Academic year leases abound in college towns.
Shorter lease terms may help cause turnover, just as they may assist landlords to adjust rent prices more often to follow market rates.
Early Termination
A well-defined early termination clause in your lease agreement helps the tenant in case the tenant might have to move due to an emergency. In other words, the lease agreement would be terminated before the agreed term.
The clause needed should specify the notice period required, the associated fees, and conditions where such fees may be waived. If you are a military tenant, it is imperative to include a military clause that complies with the SCRA so that the tenant can terminate the lease without penalty if he or she receives deployment or PCS orders.
Subletting Provisions
Subletting, or the lease assignment, can be a very beneficial accommodation for tenants who need to be gone for a while to move out of a unit. But you have to control who occupies your property.
To proceed, consider including clauses allowing subletting or assignment only with the Landlord’s approval and stipulating criteria for potential subtenants and the original tenant’s continual responsibilities.
Payment Flexibility
More importantly, flexible rent payment plans can be provided to tenants with irregular income or temporary financial difficulties.
It would be smart to allow split payments, accept alternative payment methods, or graciously give you a small period of time to pay past due with no penalties. You also want to ensure that you define these terms very clearly in your lease agreement so there are no grounds for reasons later.
Deposit Alternatives
If you have many tenants who might have trouble with large upfront costs, consider alternatives to the traditional security deposit.
Installing more access to your property for quality tenants may include surety bonds, where tenants pay a nonrefundable fee to a third-party company that guarantees the deposit amount to the landlord, or installment plans that allow tenants to pay the security deposit in multiple payments throughout the renting period.
Absence Maintenance
For people absent for a long time on a property, include clauses regarding maintenance in the absence. They require you to be notified by tenants if they are planning an extended absence, what responsibilities the tenants must maintain during those periods, and your rights as to when you can enter or inspect the property.
Eviction Protection
Eviction protection is important for military tenants. Under the SCRA, active-duty service members are protected against eviction or foreclosure.
Military tenants or their dependents cannot be evicted from their primary residence for failure to pay rent unless by court order. To comply with these protections and stay out of legal water, you must verify the military status of the tenant before undertaking any eviction and seek legal counsel if eviction is necessary.
Legal Compliance
When customizing lease terms, it is important to ensure that everything meets local, state, and federal laws. That includes state-specific regulations concerning lease phrases, tenant rights, and native ordinances that can affect your lease phrases. Local real estate attorney consultations will help you make your customized lease agreements legally sound and enforceable.
Conclusion
Keep a delicate balance by adapting lease terms to accommodate the special needs of bond tenants while protecting the value of your rental investment. Landlords can offer unique rental situations while still attracting and retaining quality tenants by offering flexible lease durations, early termination clauses, and alternative payment methods.
To successfully manage this special circumstance, clear communication must be used, well-defined lease terms must be understood, and relevant laws must be known. Customization is important, but it is also important to be consistent and ensure all changes adhere to legal constraints. Landlords can become more profitable if they adapt to tenant needs without creating a lasting negative relationship.
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