|
|
|
Questions Every Renter Should Ask Before Signing Any Rental Agreement - 2007-08-25 |
Last week we looked at questions a homeowner should ask of every prospective renter. So it's only fair that we turn the tables this week, and list critical questions that every renter should ask before they sign anything:
* Can I get a copy of the lease agreement before I am asked to sign it?
The reality is that most renters sign the lease presented to them, believing that most agreements are "standard" in nature and have similar provisions. In fact, lease agreements can and do vary dramatically in their requirements and terms.
The smart renter will take the time to read each paragraph, or at least ask about any condition that doesn't seem to make sense. In the best of circumstances, you would consult your attorney before signing, so as to get a clear understanding of all the terms of the agreement.
* What is the term of this lease, and is there a provision for automatic renewal at the end of the term?
For your protection, every rental agreement should be in writing, so that you have a permanent record of the agreement. Most often, the term of the lease will be one year, but shorter or longer terms are an option.
The primary purpose of the lease is to identify how much rent you will have to pay for a specific period of time, but many leases have provisions for automatic renewal. Some offer automatic renewal for another full term, typically six or twelve months, while others may include a provision for automatic rent increase of a certain amount or percentage.
The most commonly seen provision says that if the tenant continues to occupy the premises after the termination date, the lease renews on a month-to-month basis, with a continuation of all the terms and conditions in the original agreement.
* How much is the monthly rent, what day is it due, and how must I pay it?
Some leases offer a discount for on-time payment, while others include monetary penalties for payment after the due date. Rent is most often due on the first day of the month, but can be set for any date the parties agree upon.
Some landlords require that rent be paid in cash or money order only, while others prefer checks. In addition, many management companies supply envelopes for rent payments and request that the rent be mailed to their offices. This policy would require you to mail the rent several days early to allow for delivery. Interestingly, most managers have been slow to accept rental payments through electronic means such as bank draft or credit card, although that may change with time.
* What happens if I need to break the lease before the termination date?
It's a fact that things happen in people's lives, and a situation may arise causing you to need to move. If that happens, what are the consequences?
In the best lease agreements, a clear path is spelled out for concluding the agreement prior to its originally planned date, as well as the financial consequences for taking this action. One popular lease requires at least sixty days notice of the new termination date plus payment of an "early termination fee." That fee is equal to one months rent. Then standard move-out requirements apply.
* How much is the security deposit, and how do I get my deposit back?
The security deposit is intended to secure your performance under the terms and conditions of the written agreement. Primarily, the landlord expects you to pay the rent on time, and return the property at the conclusion of the lease in a clean, ready-to-rent condition, with normal wear and tear excepted.
So if you pay the rent and return the property without damages, you should be entitled to a complete refund of your security deposit. Georgia law requires that you be presented a complete list of existing damages at the time of your move-in as well as a move-out list of damages when you depart, but landlords with ten or fewer units are exempt from this requirement.
Because the return of your security deposit is such a frequent point of contention, I recommend that you require a written move-in inspection before you pay any security deposit, and that you and the landlord sign that document as proof of the property's condition at the time you moved in. A dozen digital photos would also add to your documentation, and might serve to refresh everyone's memory one year from today.
* What is "normal wear and tear?"
Unfortunately, this is almost impossible to define, but let's give it a try. "Normal" is the amount of wear and tear that a reasonable person would expect to occur from the responsible occupancy of the property over a specific period of time. So, for example, light scuff marks on walls and floors are normal after a year, but burn marks on the carpet are not. Light soiling of carpets is normal, but holes in screens or broken windows are not. Ultimately, if you and the landlord can not agree as to what is normal wear and tear, you can take the landlord to court and let a judge make the final decision.
NEXT WEEK: More questions every renter should ask.
|
|
Upcoming Events
John Adams Presents
LANDLORD SURVIVAL TRAINING
with John Adams
Tuesday, February 28th
Being a landlord can be a rewarding experience. It can also be a difficult one if you don't have the knowledge and understanding of what the process requires.
Few schools offer degrees in property management, so most landlords learn "on-the-job" through acquired knowledge and on-the-job experience, essentially re-inventing the wheel. This is an expensive and depressing way to learn anything.
Whether you're a full-time landlord or just getting ready to purchase your first rental property, whether you are a licensed Georgia real estate professional or an accidental landlord, this seminar will help you improve your property's value, increase your cash flow and decrease your expenses, from attracting (and retaining) good tenants to maintaining your property to understanding your rights and obligations under the law.
For more details and to register click HERE
PROPERTY TAX REDUCTION WORKSHOP
with John Adams
Tuesday, March 27th
One of the significant annual expenses faced by any Georgia property owner is ad valorem property tax. Depending on where you live, it can be as high as three percent of the property's fair market value, and it must be paid year after year after year.
As a result, efforts to minimize this expense are not only worthwhile, they are encouraged by Georgia law. The phrase "ad valorem" means that each property is taxed based only on its value, and no one is required to pay a penny more than the minimum the law demands.
At the Property Tax Reduction Workshop, real estate expert John Adams will review the system he has used for over thirty years to reduce valuations and assessments in Georgia counties and municipalities, saving himself literally hundreds of thousands of dollars over the years.
In this 3 hour information packed seminar, John will teach you how to:
1. Understand the legal process of Property Tax Assessment
2. Meet the newly uniform Tax Deadlines
3. File your own Property Tax Return with a realistic valuation
4. Document your PT-50R with facts to support your case
5. Proactively meet with your Appraiser to reach an agreement
6. Protest your Notice of Assessment in an Intelligent manner
7. Give the Assessor an Opportunity to Save Face
8. Appeal to your Board of Equalization, in person or by mail
9. Make Your Case to the BOE
10. Take Your Case to Superior Court if necessary
If you are not doing all these steps now, you are likely costing yourself hundreds or thousands of dollars a year. If you own just one house, you could easily save over a thousand dollars over the next three years. If you own properties valued collectively over a million dollars, you are literally throwing away your profits year after year.
For more details and to register click HERE
|
Resources