You’ve purchased your first Raleigh investment property.
You’re ready to embark on a journey as a landlord. There are many things you’ll need to consider.
The first thing you’ll want to pay close attention to is the property lease agreement.
It’s vitally important to ensure your lease clearly and legally outlines key requirements and restrictions of your tenant. A properly written and executed lease is essential protection if things don’t work out as planned and will keep you from running afoul of North Carolina tenant law.
As an experienced property manager with specialized knowledge of the Raleigh area, Oak City Properties can help you with your lease. We ensure your lease properly covers the important clauses listed below. We can also review other details specific to your property.
Basic Information
It might seem obvious, but the lease should include legal names and addresses of the landlord and the tenants. It should include the property address and pertinent details about the property. These might include assigned parking spaces, mailboxes, or external storage closets.
Occupancy Restrictions
Federal law requires landlords to allow two persons per bedroom in most cases. Local ordinances and state landlord & tenant laws may dictate the number of occupants for safety reasons. And in neighborhoods, HOA’s may have restrictions and neighbors may not appreciate parking or noise problems that come from an undue number of occupants. A property management company experienced in Raleigh real estate law can help determine and outline the maximum number of occupants allowed in your rental.
Security Deposit
Security deposits protect you against damage to your property. Under North Carolina law, a landlord may collect up to two months rent. Outline the amount of the security deposit, conditions required for its return, and time frame for return. Include a tenant/landlord checklist at move-in and complete a walk-through of the property together so there are no disputes at move-out regarding new damage vs. old.
Expectations for Maintenance of the Premises
As a landlord, you’re legally entitled to make any rules you want regarding maintenance/use of the property, as long as they aren’t discriminatory, retaliatory, or in violation of state or federal law. Not sure if you can prohibit your tenants from parking on the lawn? A property management company can tell you whether this restriction can be included in the lease.
Pets
Will you allow pets? Restrict pets to certain breeds? Require a separate pet deposit? Absolutely not allow pets and want to be able to evict a tenant for breaching this aspect of the lease? Include this in the agreement. Also make sure you stay in compliance with the ADA rules for Service Animals.
Rules of Tenancy Termination
Clearly state requirements of a tenant, and of you, if either party wants to terminate the lease. If you need to evict a tenant for non-compliance with the lease agreement, be sure to outline any associated fees, and procedures for vacating the property and disposal of personal items left in the unit.
As with many other aspects of managing investment property, the rental lease is an area where Oak City Properties is extremely knowledgeable. We can help you construct a lease that will protect the landlord and will be in full compliance with both North Carolina and federal tenant laws. Contact us to learn how our property management services will help make your investment property venture most successful.