Do you ever think of renting out a place that has furnishings in it? If so, welcome to our in-depth guide, where we discuss how crucial lease agreements are for safeguarding your assets and facilitating a smooth leasing process. Offering furnished rentals can have a lot of advantages, like increased income potential and a wider range of potential tenants, but it can also come with increased risks for landlords, such as potential wear and tear or misuse that may not be a concern with non-provided leases.
Landlords must have a strong, comprehensive lease agreement in place to successfully manage these risks. You will improve your position if there are any disputes by including specific clauses that cover tenant obligations, security deposit protection, and duty for furniture maintenance.
So, in addition to basic lease agreement terms, what should you know about renting out your property that is already furnished?
A lease agreement with all the specifics covered is your best friend when renting out equipped apartments. You may establish clear expectations, reduce risks, and build a strong basis for a successful landlord-tenant relationship by paying close attention to specific property descriptions, inventory lists, and furniture maintenance obligations.
Alongside the detailed property description, it’s essential to maintain a comprehensive inventory list. Imagine listing each item meticulously, from the brand and model of the sofa to the condition of the coffee table, plus the approximate price of this piece (even better if you can prove the latter documentarily). This inventory list serves as a valuable reference point, allowing you to assess the condition of the furniture and hold tenants responsible for any damages beyond normal wear and tear.
Multiple benefits result from including details like the type, style, condition, manufacturer, model, and market price of each item in your property description and inventory list:
Setting the tone for a healthy and courteous landlord-tenant relationship lies in clearly established tenant obligations for furniture care and maintenance. Specific requirements for routine cleaning, repairs, and replacement of damaged furniture should be spelled out and distinguished in your lease agreement. You may specify, for example, that the tenant is in charge of dusting and cleaning the furniture regularly, including wiping down surfaces and vacuuming upholstery to maintain them immaculate. If any spills or stains happen, they should be cleaned up at once to avoid lasting harm.
In addition to basic maintenance, it’s important to discuss any specific maintenance obligations with your tenants. Consider a leather sofa that needs to be regularly conditioned to avoid drying out and cracking. For your protection as a landlord, it would be beneficial to provide explicit instructions on how to handle this sofa’s issue (either in the main body of the leasing agreement or as an attachment) and require your tenants to abide by these guidelines. You may ask for payment for the sofa’s repair in the event of any damage.
Tenants should be made aware of their obligation to report any leaks or damaged fixtures right away in an emergency event, such as a plumbing issue. For instance, tenants should contact you immediately if a toilet keeps running or a faucet handle becomes loose so that you may make the necessary repairs to save on future damage. Insist that you, as a landlord, should be informed as soon as possible to deal with the situation before it gets worse.
At the start of a lease, tenants must pay a sum of money known as a security deposit, which serves as a safety net for landlords. During the term of the lease, it serves as insurance against possible losses, excessive wear and tear, and unpaid rent. The need for a security deposit is further underscored in the context of furnished rentals, where priceless possessions like furniture and amenities are offered.
The security deposit deductions that landlords are permitted to make are determined by two factors:
An important thing to remember! The state law will take precedence over the lease if it says one thing and the lease says another. Therefore it’s crucial to consult with an experienced real estate lawyer near you.
In most cases, landlords are permitted to deduct the cost of repairs, painting, cleaning, and item removal or disposal from the security deposit of a renter. In addition, a security deposit may be used by landlords to reimburse past-due rent or utility costs.
Let’s explore what the key points to do by yourself or with your lawyer concerning security deposits are:
A professional and detailed lease agreement is absolutely crucial when renting a property, especially in the case of furnished rentals. Here’s why it’s so important:
Don’t rely on chance to protect your furnished rental property. To safeguard your valuables and guarantee a satisfying renting experience, take preemptive measures. You may reduce risks, protect your priceless furnishings, and lay the groundwork for a strong landlord-tenant relationship by investing in a professional lease agreement customized to your unique needs.
Author Bio
Karyna Pukaniuk is the Head of Legal at Lawrina. Experienced Tax and Corporate Lawyer, team leader, and legaltech pro. Led and backed the smooth operation of the legal team and accompanied several different projects simultaneously. Worked closely with department’s leads and shareholders and advised them through all legal, regulatory, and risk management matters. Supervised multi-million dollar M&A deals and actively participated in the company’s product development.
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