Why Landlords Should Sign Rental Lease Agreements

As the property owner, landlords bear the ultimate responsibility for the property and any issues that may arise during the tenancy. By signing the lease agreement, landlords acknowledge their responsibility and agree to the terms outlined in the lease. This includes maintaining the property, dealing with repairs and maintenance, and ensuring tenants can peacefully enjoy the property.

When Property Managers Can Sign Residential Lease Agreements

In some cases, it may be appropriate for a property management firm to sign a lease agreement on the landlord’s behalf. For example, what if the landlord is out of the country and unable to sign the lease in person? In such cases, the landlord can authorize the property management firm to sign on their behalf. Additionally, if the landlord is not fluent in the language of the lease agreement, they may ask their property management firm to sign on their behalf. This could help ensure the agreement is translated and understood correctly.

Using Automation Tools for Rental Lease Signatures

Technology developments have made it easier for landlords and property managers to manage lease agreements and electronic signatures. Cloud web applications like PropHub.com can help streamline the process and ensure all parties are on the same page, regardless of who actually signs the lease agreement. With PropHub, you can easily manage lease agreements, e-signatures, and other rental management tasks. This helps makes your job as a landlord or property manager much easier.

Conclusion

Ultimately, it’s up to the individual landlord or property management firm to decide who should be selected for residential lease agreement signatures. However, it’s generally best for landlords to sign the lease themselves. In certain scenarios, such as when the landlord is out of the country or not fluent in the language of the lease, a property management firm may sign on the landlord’s behalf. With improved software tools, landlords and property managers can simplify the decision-making and execution of rental lease agreements.

Whether you are a management firm or a DIY landlord, be sure to sign up free today on PropHub. Our simple yet powerful property management tools, including electronic leases and digital signatures, are sure to please.

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Security Deposit

As a private renter, you’ll be required to pay a security deposit. A security deposit protects the landlord from not being able to recover from property damage and unpaid rent. It is paid before you move in and depending on the state of the property at the end of the tenancy and it you’re up to date on rent, you might receive some, all, or none of your security deposit back.

A security deposit is a separate cost from your monthly rental payment. The security deposit amount is determined by your landlord but is typically equivalent to one or two months of rent. So it’s very important to budget that into your costs!

Depending on your credit history, your security deposit may be more or less expensive. Some landlords may even ask for a few months’ rental payment upfront for additional protection. One way around this is getting a guarantor or co-signer, like a parent with strong credit, on your rental lease agreement.

Pet Fees

Another thing to factor into your housing costs are pet fees. A lot of private rentals don’t allow pets generally, due to concerns around damage and smell. However, some landlords do accept pets and may request a fee. This fee can range from as low as $50 to as high as $500 or more, depending on your location and your pet’s size.

Furnishings

Many people can forget about how expensive furnishing a place can be. As you’re moving into a college rental, you’ll most likely have some existing furnishings already provided, but in some cases you may not. According to the National Retail Federation, dorm and apartment furnishing are among the top three spending categories anticipated for the back-to-college season, at $9.7 billion in expected sales.

Furniture costs are highly variable depending on where you live, whether you stick to essential furnishings or add decorative items, and if you choose to shop for new or used furniture.

Is this your first time renting on your own? Read of our previous article: How to Be A Good Tenant

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What are your goals?

Your goals and time frame are going to play a huge role in when you should expand your property portfolio. If you want to achieve financial freedom in the near future then you should start expanding your property portfolio right away. But if you have a longer time frame of 10 or 20 years then obviously you don’t need to expand your portfolio as quickly.

Your goals and how long you want to take to get there is going to largely determine when you want to expand your portfolio and how much risk you want to take.

What is your risk appetite?

Thinking about your risk appetite is an important step in your investment journey. You’d have to consider how risk-averse you are and factor that into your overall decision.

Your risk profile will affect when you expand your portfolio because you may be more risk averse or at a point in your life where you can’t afford to take risk. That then is going to effect when you choose to expand your portfolio because you may not want your loan to value ratio to blow out of control.

Can you afford to finance a new property?

It may seem self-explanatory, but it’s good to consider if you even have enough of a positive cash flow to finance the purchase of a new property. If not, where can you get the funds from? Can you partner up with someone in a joint venture or borrow the money from close family and friends that you trust?

Will banks be willing to lend to you?

If your cash flow is in a good place, it’s time to start considering your borrowing power. Start working on your credit if it’s not good enough and begin to build a strong case for borrowing to finance the remaining amounts of your next purchase.

What is your exit strategy if there is a market downturn?

If you are investing in a positive cash flow property that produces income then chances are you can probably bide your time if the property market goes down.

But if you are hoping for an increase in the market because you want to sell your property in one or two years then that could put you in a difficult situation where you may not be able to afford your property and it’s losing you money.

Setting the right price for your rental property can be a bit confusing. Read our previous blog post: Pricing Your Rental Correctly

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Here’s our guide on how to price your rental correctly.

Look at your local market

Before pricing your rental, it’s important to have a thorough look into what other landlords locally are charging. 

The average price can vary greatly, depending on states and cities. As an example, rental properties are likely to be at a premium in places like L.A and New York City, whereas smaller towns with less economic growth and higher paying job opportunities, maybe less desirable to prospective tenants which pushes down the price.

Consider the seasons, they matter

In addition to looking at local competitors, considering the seasons is also a very important factor. Seasons are important as they tend to reflect demand for rentals in your designated area. As an example, if you’re based in a neighborhood that is mostly made up of homes for sale, then this can give you more room to upcharge your rent due to limited options for tenants. However, if your property is heavily surrounded by rental properties, you’ll need to set a more competitive rent price to avoid being overlooked by good tenants. 

Consider your property amenities

Make sure you showcase your most favorable amenities within your rental listing and factor them into pricing your rental.

For example, if you find a comparable property that’s similar in size to yours but it lacks an important feature or amenity, such as a parking space, then you may be able to justify a higher price.

Are you constantly burning out because of stress and running your rental business? Read our previous blog post: Keeping work-life balance as a landlord

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