What are Best Practices for Residential Landlord Lease Drafting?

When drafting your lease for a rental property, it is essential to follow some tips to ensure your rights are protected.

As a landlord, one of the best ways to protect your rights and best interests is to have a properly drafted lease agreement. Having a strong lease in place can help you avoid repetitive questions, as your tenants can simply turn to the lease agreement to get the answers they need. Additionally, having a lease in place can provide the necessary protection if you ever have to resolve a dispute in court. Otherwise, it may be just your word against that of your tenant.

Make Sure You Understand the Law

Every state has its own laws that pertain to managing property, as well as the rights of tenants and landlords. For example, Colorado has a warranty of habitability law that requires landlords to ensure their premises are habitable for any tenant. You should also provide confirmation to potential tenants that the property is in good condition and is not damaged or experiencing other issues.

Use Clear Language

Using ambiguous language will not help you resolve disputes. Poorly written agreements that contain vague language and confusing terms are open to misinterpretation. When including provisions in your agreement, use terminology that is easy to understand and fully explain anything that may be misunderstood.

Include Your Pet Policy

Many landlords in Colorado include an absolute prohibition on pets, meaning pets are not allowed in rental units. However, some landlords also allow pets but put restrictions on them. For example, you may allow only small pets. In these instances, it is critical that you outline the exact weights and measurements you will allow. Additionally, while you can raise rent for pets, known as pet rent, it cannot exceed $35 per month or 1.5 percent of the monthly rent, whichever is greater.

Payment of Rent and Security Deposits

Of course, you should also include the amount of rent the tenant must pay each month, as well as any security deposit you are seeking. You should also stipulate how the security deposit will be used. For example, if you are using a security deposit to cover damage to the rental unit, you should clearly outline what you consider as ‘damage.’ Likewise, you should also outline the legal recourse you will take if rent is late and what exactly is considered late.

Restrictions on Activity

Consider if you want to restrict your tenant’s activity in any way. For example, if you or someone else lives next door to your tenant, you may not want them playing loud music late at night. Within the lease, stipulate this provision and the exact times it is prohibited for them to play loud music, such as between the hours of 11:00 pm and 9:00 am.

There are many best practices to follow when drafting your lease. Following these tips will ensure your rights and best interests are protected, particularly if a dispute between you and your tenant ever arises.