The longer you own it, the more you will work to create the perfect lease/rental agreement. Landlords learn in school of hard knocks that some tenants are certified troublemakers and we do everything we can to protect ourselves with a carefully structured restrictive lease.

That’s just plain good business… but be careful not to include any provisions in your lease that may not be legal. For example…

It would be illegal to include a provision that the resident agrees not to include their lease (the lease for their property) in their bankruptcy filing…should their bankruptcy be necessary.

Bankruptcy laws are federal… tenancy law is state law.

Anyone can file for bankruptcy and invoke all the protections afforded by the US Bankruptcy Code… including not making rent payments… at least temporarily.

Here’s another caution…

It would be illegal for your lease to require residents to be responsible for any injuries they sustain during the term of the lease. The law can legally hold owners liable for damages caused by negligence. A landlord can’t hire that.

How about the repairs…

The same would apply to the requirement that the tenant be responsible for all necessary repairs. In all states, landlords are required by law to make certain repairs to maintain the property and keep it livable.

Does your lease contain an attorney fee clause?…

Requiring a tenant to pay all of the landlord’s legal fees and costs, regardless of the outcome of a court case, would also be a prohibited contract.

Most good leases have stood the test of time and will help you avoid legal trouble. Just don’t ask tenants to sign it until you have fully read and understand every line of the lease you are using.

You will find the lease we use here…

http://digbig.com/4ckcd