Know Your Lease Form
I can’t believe the number of different lease forms that are available both online and in office supply stores. If you are going to own rental property, get to know the local laws and how they affect the form that you choose. Most of the forms that I see do not make provisions for State or Local statues, rules or ordinances, and this can be catastrophic if you have to evict a tenant.
I just had an owner hire us to take over his portfolio after managing it himself for years. The lease form he used allowed him to refund the security deposit within 30 days of the tenant’s vacancy. No problem??? WRONG!!! In Arizona, the statutes require that the deposit be refunded or accounted for within 14 business days, the penalty is THREE TIMES the deposit in your former tenant’s pocket regardless of damages, unpaid rents or other allowable deductions. NO questions, NO excuses. This is a simple, but costly mistake thanks to a generic “off the rack” form.
Get your forms checked by a licensed Broker or attorney to insure they will do what you need, when you need it!