Real Estate

The Landlord and Tenant Lease Signing Guide

This article is a step-by-step guide to the landlord-tenant signing process and how to do it correctly. This guide will guide you step by step through the entire process.

One of the biggest mistakes owners make is speeding up the process. They give the tenant a lease to sign, collect their money and hand over the keys. They ask “Do you have any questions?” The tenant responds with a “No”, that the landlord is out the door. This is a big mistake!

Operating like this guarantees failure. Why? Because you have not explained in detail what the responsibilities of the tenants are and what you expect of them. They will assume that they can operate as they did with the previous owners. That nothing has changed!

So what is the correct way to go through the landlord-tenant lease signing process?

Step 1: Let the tenant know that this process takes a minimum of two hours before they come in and that everyone who will be living in the rental property must be there at the signing of the lease.

Step 2: At the rental property, provide a copy of the lease to all adults who will be living in the home.

Step 3: Read the entire lease to tenants line by line. Make sure they understand each section. Have them initial each page and sign the last page of the lease. Emphasize rental due dates and late fees if they are not paid.

Also emphasize their maintenance responsibilities and what is expected of them. Let them know that they will be charged for any property damage. Show them where to send the rent payment and how to contact the property management.

Step 4: Give a copy of the move-in inspection form to the tenant and review it line by line as they walk through the house. Document the agreed-upon condition of each item on the form and ask them to sign it. Take pictures of the entire home during your move-in inspection.

Step 5: Show tenants where all the emergency shutoff valves for water and gas are and how they work.

Step 6: Show tenants how to change smoke alarm batteries.

Step 7: Show tenants how to reset GFI outlets in bathrooms and kitchen if they trip over. Explain to them, if the GFI trips, they could lose power in various areas of the house. These should be the first areas they go to if they lose power in one part of the house.

Step 8: Show tenants how to change the boiler filter. This is very important and one of your monthly responsibilities in a home.

Step 9: Show tenants where the main electrical panel is and how to turn off the power to the house.

Step 10: Emphasize to tenants that food or other foreign objects should never go down the sink drains. They need to go to the garbage.

Step 11: Emphasize to tenants that feminine products and other foreign objects should never go to the bathrooms. Only human waste should go to the toilets!

Step 12: Show tenants how to use the thermostat. Let them know that the heating and cooling system should be turned off when changing the furnace filter and mowing near the outdoor air conditioning unit.

The last steps are to collect all money owed, which should be in the form of a cashier’s check or money order. And give them a receipt for the money received. Now you can give them the keys to the house, but have them sign a key receipt form. Listed here are how many keys they received and the replacement cost. Before leaving home, check all forms for signatures.

Ask them if they have any questions, if not, congratulate them on their new home.

By following this tenant and lease signing process, you will have a lot less hassle and headaches.

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