KriyaGo - Blog #tenant management

7 Clauses You Must Have In Your Lease Agreement

Tue, 11 Jan 2022 12:37:03 -0500

If you're planning to lease out your property, you may have to consider getting a lease agreement prepared before looking for tenants. Lease agreements are written documents to safeguard your property from damages or any legal issues with the Tenant. All the clauses mentioned in this agreement should be crystal clear and easily understood by potential tenants to avoid confusion.

Every lease agreement will be different depending on several factors such as property type, area, state laws, and more. However, some clauses are common in all the lease agreements that are a must-have. Let's take a look at each of them here.

7 Must-have clauses in your lease agreement 

Preparing a lease agreement can be a daunting task, but here are the seven clauses that you must have in your contract before leasing your property to tenants. Knowing what to include can ease the process and cut down the time required to write your agreement. Here are the seven clauses to include in your contract.

1. Security deposit terms

As the name hints, security deposits are promises made by the tenants to keep your property secure and cover-up for damages done by the tenants. As a property owner, it's important to add this clause in your lease agreement to reduce your liability in case of any events. Here are some of the things to add to this section:

The exact amount that should be deposited. 
The interest rate and the way you store the deposit
Add how you return the deposit amount

You should also specify the reasons in case of deducting the amount

2. Maintenance and repair clause

Maintaining your properties is crucial, and it's an ongoing process. As a landlord, you will be responsible for recurring maintenance such as gardening and plumbing. Specify that in your lease agreement and also the steps to place maintenance requests when the need arises.

Adding this to your lease agreement can reduce the chances of huge damages to your property and ensure all the maintenance requests are placed and inspected on time. Ensure you mention every detail clearly in legal jargon and simple words so that it's easily understood by the tenants to avoid misunderstanding.

3. Rent payment clause

It is a must-have in any lease agreement. You should add the entire lease amount along with the rent charges every month and the due date in your contract. 

The Tenant agrees to deposit $xxxx as security and agrees to pay $10,000 rent to be paid like $833 per month due on the 5th of each month. A grace period of 5 days is allowed, but payment after the 10th of each month will result in additional charges, and the Tenant must pay $30 as an extra for every late payment. Upon signing this agreement, the Tenant agrees to comply with these terms.

4. Duration of the lease

Having a well-worded written document and getting it signed is one of the most crucial steps before leasing your property to tenants. You need to specify the duration of the lease along with the due date. It's also important to add the notice period. It goes something like the example below:

"The lease on the property begins on March 10, 2021, and ends on March 31, 2022."

5. Renewal clauses and other responsibilities

One of the must-haves in your lease agreements is the lease renewal clause. It's important mainly because if the tenants choose to stay after the set period, it's important that they notify you regarding the same.

If they decide to leave the property, tenants should inform you a month or two in advance, so it's easy for you to fill the vacancy during the time. Specify the renewal terms, and for new lease agreements, KriyaGo can help you do just that. We help you automatically renew lease agreements to ease the process. 

6. Restriction and breakage clauses

You need to write whether pets are allowed or not and regarding any such restrictions in this step. Some landlords have a strict no pet policy, conditions on excessive noise in and around the property, and many more. If there are any such restrictions, you need to add them to your lease agreement as it prevents covering up damages done by pets.

It also prevents disturbing the neighborhood with loud noises or pet litter on your property. You should also include breakage clauses in the agreement to avoid paying more for damages done by the tenants on your property. It clears any misunderstanding by having a legal written document signed by both parties. 

7. Termination clauses

As the property owner, you have the right to terminate the Tenant during the term. In case of any damages or misconduct, you can notify your Tenant to leave your property, so it's always better to have an agreement signed. Termination clauses specify certain conditions under which the Tenant can be terminated.

Finally, make sure all your property and tenant details are mentioned and that the Tenant has read the whole agreement before proceeding to the next step. It’s important that you do a thorough background check and Here's an example of what can be written at the end of your lease agreement:

By signing this, the Tenant agrees to have fully read, understood, and adhere to the terms and conditions mentioned in this lease agreement.

Create your Lease Agreement with KriyaGo

If you're having difficulty creating a lease agreement or lease abstraction for your real estate business, let KriyaGo do it for you! We can also customize property management software for your business, prepare lease abstractions, back-office accounting, and a lot more.

Our team of experts will help you find the best solution for your property business and ensure a smooth flow of processes, right from hiring tenants to creating automatic lease agreements for you. To know more about it, talk to our team of experts today!

References

10 Ways You Can Make Your Work Simpler with Real Estate Integration

Tue, 05 Oct 2021 12:04:18 -0400

Modern-day property management software has made real estate processes easier. With several options, real estate companies struggle to make the right technology choices. Proper planning of business goals can help you define your technological needs. If you want to automate several processes, then one of the best options is software integration.

Integrated software is cost-effective and has the benefits of multiple software in a single platform. Through the right strategy, you can use integrated software to simplify real estate activities. Here are some of the best ways you can use software integrations to manage your work.

1. Better data flow

Data synchronization is one of the most important outcomes of real estate software integration. Real estate processes are interdependent and benefit from smoother data exchange. For example, if you use a separate CRM software, then your sales software cannot target the relevant leads due to the lack of data. Instead of manually entering data from one software to another, you can opt for integration.

Unlike individual platforms, using integrated software requires you to enter the data only once. All property management processes can function through this single database. Whether it is CRM or accounting, all systems can exchange data among one another.

2. Improve data quality

Software integration reduces repetitive tasks such as entering the same data in different platforms. Such data entries can duplicate and make the whole system inefficient. Eliminating redundant tasks not only saves you time but also impacts the data quality. Why does this matter? According to SiriusDecisions, organizations can get up to 70% more revenue with better data quality.

Reducing duplicate data, organizing the information, and cleansing the data regularly are some steps you can take for high data quality. All of this can be easily achieved by integrating your real estate software.

3. Reduce cost and investment

Varying business needs drive property managers to invest in multiple similar software. While the tools, as a whole, can meet the business requirements, most of them also have several features which go unused. Real estate integrations allow you to spend on only those features required for your business.

Another way you can reduce technological costs is by integrating old and new software. Most platforms release updated versions with new features. Discarding the old one and moving all the data to the new software can be expensive and time-consuming. Instead, you can integrate both of them for easier data transfer and also get a smoother transition.

4. Improve security and compliance

Repeated data transfers using internal or external agencies pose a threat to data security. Most of your software contains financial information, documents, and other sensitive data. Risks with data transfer involve accidentally sharing access credentials and data deletion.

Integrating software eliminates unnecessary data transfers. As the data is stored in only one place, it is also easier to back up and restore whenever required.

5. Better tenant management

Accessing all tenant information in a single place makes tenant management more effective. If your rent payment details are saved in one platform and maintenance details in another, then managing tenant information becomes difficult. By integrating tenant portals and accounting software, you can save all tenant information in a single database.

Doing so makes it easier to keep track of rent payments, maintenance requests, and other information. It is also easier for your tenants to access all their data in a single place.

6. Improve lead generation

This is one of the most important goals of every organization. According to IDG Enterprise, 68% of marketers find generating high-quality leads a challenge. While most organizations manage to find relevant leads, they fail to keep them interested because of inefficient follow-up processes.

To effectively nurture leads, you need to have the right information on each prospect. Collecting data for lead follow-ups can be tedious if you do not use integrated software. If you have a single database storing all prospect information, then you can nurture them better through strategies like email and content marketing.

7. Accurate data analysis

Data analysis is the future of the real estate industry. It can help make better investments, improve tenant satisfaction, and generate higher revenue. A report by Deloitte has emphasized the value of data analysis and urged real estate services to “evolve from building and systems management to integrated management of spaces.”

Data isn’t useful if it is scattered across various platforms. Data collection for accurate predictions can be achieved through integrated systems. Changing the way you manage and store data can have a huge impact on the predictive power of your business.

8. Customize automation

Off-shelf real estate software is designed keeping in mind the broad requirements of companies. If you want something specific, then customizing your software is an excellent option. But, instead of building new features suitable for your business, you can utilize existing features from different software.

This makes customization easier while allowing you to design software based on your requirements.

9. Manage portfolio

Managing your real estate portfolio is important if you want to market yourself better. Having an organized portfolio creates a better impression on your client and also makes it easier for you to communicate. Integrating software lets you display all your products and services in a single place. This is a hassle-free approach to brand marketing and visibility.

10. Optimize communication

Finding it difficult to send the right information to your tenants or clients? Try integrating software to manage data easily. For example, by integrating tenant portals with your payment software, you can easily send rent invoices and receipts to your tenants. Similarly, tenants will also find it easier to send you information through a single platform.

Make the most out of real estate integration through KriyaGo

KriyaGo understands the many benefits of integrating real estate software. Whether you want to upgrade your software or just add new features, we have solutions to suit your requirements. Our experts work with platforms like Yardi, Procore, and SAP Concur and offer unique insights for software integration. We support you throughout the integration process with data integration, training, and more.

To start with real estate integration, reach out to KriyaGo!