Real Estate Rental Agreements, Leases And Roomates

More property owners today are renting out a portion of their property to help make ends meet. Unfortunately, many of these arrangements just don’t work out the way the owner had intended.

 

If you’re a property owner and want to supplement your income by having a roommate or a paying renter, there are many steps you should take beforehand. Of course, you want to know everything you can about the person who will become your renter including references from past landlords, their income stability and other compatibility areas. A roommate who turns out to be a party animal when you’re looking for peace and quiet isn’t going to make a lasting relationship.

 

You’ll need to decide how to base your rent. You may want to charge a flat monthly rent, or a monthly rent rate plus division of utilities and other household costs. A flat rate is easier, but you should consider your renter could run up exorbitant heating costs.

 

You should also consider having a real estate attorney draw up a renter’s agreement or lease. Your attorney can determine whether a lease or agreement is best suited for your needs. There are other areas the attorney can help protect you such as writing in a mediation clause. If a major dispute occurs, mediation (third-party person) could save you thousands of dollars later.  

 

A one-size-fits-all online form is generally not the best protection for a landlord. These generic forms are often not written per state laws, contain clauses that aren’t legal in your state and omit important information for your protection.

 

A Renter’s Lease will give a tenant the right to live in a property for a fixed period of time, generally 6 months or a year. As long as the tenant pays their rent and complies with the provisions written in the lease, the landlord can’t raise the rent or change any terms of the lease, unless the tenant agrees. When a lease expires, it is not automatically renewed.

 

A Renter’s Agreement is usually written for shorter periods of time, typically 30 days. The landlord can change the terms, such as raising the rent with written notice. A renter’s agreement is automatically renewed at the end of each period, unless the landlord ends the agreement with a written notice.

 

Your experienced attorney can help you determine rental deposits and other fees such as cleaning and needed repairs that result from more than normal use. Many states have set amounts of security deposits a landlord can charge, and deadlines for returning security deposits. Colorado does not have statutory limits on the amount a landlord can charge.

 

When you have a well-written lease or agreement, you lower your chances of facing legal issues later. Our experienced real estate attorneys in Denver can help you with writing a lease or agreement or review an existing lease or agreement for any errors, omissions or additions that should be included.