Self-registering operators are not lawyers, and leases are full of unusual and often archaic technical language or „legalese“. Many leases contain long, confusing paragraphs designed to cover all eventualities under the sun. If you can`t expect an operator to understand all the legal effects of a lease, can you expect employees and tenants to do so? Does your tenant have to pay the monthly gas bill? Will you cover the cost of garbage collection? The lease agreement should clearly state who should pay for which utility companies. By entering into a tenancy agreement that compiles the terms of payment, the rules that tenants must follow and the consequences of a tenant breach of contract, you help ensure that your first attempt to own a homeowner is smooth. If you are an owner in Pennsylvania, you must also use a state-approved Plain Language Lease to remain in compliance with national law. Although this possibility is mentioned in the lease, it is buried in a type of seven lines, eight points, of sales of a piece called „default“ on page three. Maybe the tenant really tried to read and understand the agreement when it was signed… until his eyes are stained glass and the manager has not been able to explain all the terms in the first 10 overloaded paragraphs, let alone the terms in question. If so, revising your lease using the simple language can offer many advantages. For example, an easy-to-understand chord requires less time to explain it at the beginning. First, it`s likely that your employees spend less valuable time tracking customers after mistakes and that recurring questions arise.
This allows them to work on more important tasks. Many self-help operators pride themselves on first-class customer service. The provision of an easy-to-understand lease is clearly part of this trend. When was the last time you checked your lease? You may have read it correctly when your lawyer originally wrote it. Maybe that was years ago. Perhaps you check regularly to make sure that you have not neglected significant changes in trade laws in your state (including your state`s pawnbrokers act) or updates to modern business practices. Some operators may never have read their leases and have full confidence in their lawyer to cover what is needed. And that`s where the friction lies, because employees and customers are the people who work with leases on a daily basis. It is therefore important that the documents they use are written in such a way that they all understand. The tenancy agreement must also include the amount of the deposit and the circumstances in which it is returned to the tenants. If you do not leave the accommodation in good condition, the deposit will generally not be refunded.
Note the day of each month when the rent is due and the payment must be sent. If you intend to collect late charges for late rents, the agreement should specify this. For example: „If the tenant rents more than 5 days after the due date, an additional $50 is charged.“ The life of an owner is not always easy. If you`re worried about creating a lease that protects your investment, The Diversified Real Estate Investors Group (DIG) can help. Plain language does not require an operator to make the lease „stupid.“ On the contrary, use it to communicate clearly, confidently and effectively the terms of the agreement to the most important people: your employees and your customers. When everyone understands what they are signing, there are fewer questions about the nature of the relationship they enter.