Have you gone over your lease agreement lately? You might think that this contract you have has all the details listed down, but are your terms perfectly reasonable?

This agreement is an essential part of the relationship between landlords and tenants as it is binding. Both parties should uphold what is stipulated to avoid any legal issues. Before signing, the potential tenant should thoroughly read the terms and conditions. They have the option to reject the contract if they identify some red flags. But, what are those red flags?

Before you go any further, I suggest you grab a copy of your lease agreement and check if you have those possibly unfair terms that might cause your tenants to complain or question you.

• The landlord can gain access to the property at any time

A landlord that can come over anytime he wants? Put yourself in the tenant’s shoes for a moment. Would you want someone who is not even close to you to just have complete access to your home?

Even though technically, the landlord does have some rights as he is the property owner, you still have to respect your tenant’s privacy. There should be a valid reason for your visitations, the tenants should be notified ahead of time and it should be done during reasonable hours. Except, of course, for emergencies.

• Overcharging of late fees

This is something you should watch out for. Late fees are normal and necessary when it comes to these kinds of business. If you would not impose late fees, your tenants will pay whenever they want and most probably, it would be later than you would expect. Your rental units could become a financial burden to you instead of an income-generating business.

However, the late fees stipulated in your lease agreement should coincide with the current state laws in your area. For example, a landlord in Texas can charge a late fee of 10-12% depending on the number of units he has in a property. In comparison, a late fee charged by a landlord in Los Angeles should only be around 5% of the rent the tenant is paying. Familiarize yourself with the law because your tenants will probably do the same.

• The landlord is allowed to make changes as he pleases

A landlord is not allowed to change rules mid-lease especially if this will affect the tenant’s finances and their day to day lives.

For example, the lease agreement states that you will allow a four-day grace period before charging the late fee. A landlord should not change this just because he changed his mind. A change in the terms should be included as an addendum in which both parties should agree and sign.

• Any liability for any existing damages in the property will be under the tenant

Renting out a property is a step by step process. Before you create a property listing at Padleads, you should have already done a thorough inspection and should have repaired any damages. This is to ensure that your unit is livable before you syndicate your listing to well-known rental sites.

If there are damages, it will not be the tenant’s responsibility to have it fixed before they move in. It is the landlord’s.

• The security deposit will be used for the maintenance of the property

The tenants may question you on this if the terms regarding the security deposit are unclear and unspecified.

Normally, a security deposit will only be used if damages beyond normal wear and tear will occur inside the property. If at the end of the lease, no damages have occurred, the landlord will return the security deposit to the tenant. Your contract should have specific details on what kind of maintenance or repair the security deposit should cover.

We all know that we should minimize our liabilities at all costs but not at the expense of our tenants. A landlord should be fair in constructing a lease contract because you might get into legal battles with your tenants and that will cause a bigger problem that could have been avoided in the first place. If these red flags continue to be in your contract, you might lose potential tenants and lose the profit that goes with it.