Help Me With Sign Michigan Banking Residential Lease Agreement

Help me with industry sign banking michigan residential lease agreement

welcome to this edition of the Michigan landlords show where we'll be discussing how to draft our residential lease agreement what closes are mandatory and water recommend hi I'm David hello I'm Tony guida City Michigan and I'm Jeff Howe I'm a local real estate investor in the state of Michigan and this is the Michigan landlord show make sure you subscribe to our channel right now so you don't miss the next episode click the bell icon so you get notifications when our next video will post also please write a comment below to let us know how we're doing it and if you have any topics that you would like us to tackle please comment below as well so we're going to begin by explaining what a lease actually is well at least is simply a written or an oral agreement that defines the relationship between the landlord and the tenant so in your drunken stupor don't tell your friends that you lease your home to them for $500 you might just be bound by it unlike many commercial leases residential leases generally are not the product of arm length negotiation and often are not negotiable at all we're here again please they're also subject to statutory regulation which means know the regulations so you don't mess out a lease needs to be organized and understandable don't use big words if the lease agreement is clear and understandable the courts will enforce it but if it's complicated and confusing the courts may not necessarily enforce the contract so don't be using words like prime aphasia or court reserved I have no clue what that means anyways so now for at least to be felt it must include at a minimum these four items the names of the tenants in the landlord an adequate description of the premises including the address in the unit number for example a 4 foot by 6 foot by 10 foot cardboard box located at the corner of i-96 and Woodward does the trick no really jeff has a vacancy there so if you're interested you know give them give them a call or two to the text okay so now getting back to the four items also included is the length of the lease and the amount of the rental payment of course these mandatory items could be accomplished in one paragraph but most landlord want to cover much more than merely the party's rental amounts in the length of the term so Dave what else do you recommend putting the lease well you want to identify the premises like we talked about before but you may also want to include a description of the parking whether or not it's provided and is it on the street is there a driveway are there assigned parking spaces which is common in a multi-family going also trashing the we'll identify whether or not there's a dumpster on site that the tenants to use or whether or not there's trash cans that they're supposed to take down to the curb you don't want the trash piling up outside your back door so please spell it out in your lease agreement what exactly the tenants to do with trash parking of boats and recreational vehicles specified in your lease whether or not they are allowed or if they are disallowed I have a great idea you know what I'm gonna allow my tenants to park their boat at the premise as long as I get to use it who pays for what clearly defined the utilities that the landlord is responsible for versus with a tenant is responsible for it and if there's if the unit is furnished yes or no identify that if grandma's old couch is in the property you want to identify that in the condition that it's in also and your lease you should identify who the tenants are on the lease and limit the number of tenants rent for perdy there's only supposed to be three people oh did I save for let's talk about lease terms and possession in more detail as we mentioned earlier you have to include the lease term in your lease agreement it's mandatory so specifies the lease runs from X date to X date in addition to specifying the lease terms it's also a good idea to include a cause which states that possession will be provided only after the first month rent and security deposit have been paid you should also include a clause which states that if none of the tenants takes possession on the day that's identified in the lease with no written notice of the landlord prior to or a different date that the property is considered abandoned and the premises can be relent now we're going to talk about the most favorite part Ranjin payment collection clauses I would include language that states tenants shall pay landlord rent of X amount for the specified term plus all the rents to become due under this under this lease rent shall be paid in consecutive monthly installments of X due on the first of each month beginning with the second month as the first month is collected before moving that's a month Oh sounds like a lawyer wrote that if you ever turned that as more than a month-to-month you haven't established a fixed amount for the entire term month installments are just that equal installments on a total obligation land is traditionally collected monthly but nothing prevents a different schedule such as quarterly or even annually I have one tenant that pays rental amount all up front so that's annual it's a great thing for him and I you may also want to include the manner in which payments to be are to be received whether it's gonna be paid via money order a cheque electronic payments or what about Bitcoin you could accept Bitcoin if you want to accept the currency that's not backed by any bank that's cool with you well I would also highly recommend you include a clause which states that rent is paid only when it's actually received by the landlord if you do not include this what you do is you fall back to the mailbox rule now the bail box rule says that a payment is made when it is placed in the mailbox by a tenant not necessarily when the landlord receives it matter how long it takes or if the landlord every season you may also want to include language in here which addresses dishonored shacks requiring electronic or certified funds if a tenant has a bounced check you want to also specify the notice and rental payments and how they are to be made you can specify an email address for notices and a website where rental payments can be made however unless there is an electronic notice Clause provided in your lease all communications must be made in a method specified by law generally first-class mail for example a lawyer may serve a demand for possession electronically but only if the tenant specifically consents to it in writing in the Lee subunit okay you want to state how application of payments are made for example money received by landlord from tenants shall be applied to tenants account as follows one to satisfy unpaid late fees just under check fees and to other fees owed by the tenant two to make it's a repair cost chargeable back to the tenant three to legal fees and court fees legally chargeable to tenants including cost incurred prior to curing in default prior to curing a default for two outstanding utility bills that are the responsibility of the tenants 5 2 charges fines and assessments against landlords caused by the tenant and 6 file into the rental amount I would also include restrictive language in at least that says for example the tenant can't add to his memo line on his check that this is to be applied to rent only that would be the tenant altering the terms of the lease agreement unilaterally which he cannot do on his own you'll also want to adjust late fees in your lease I'm a big fan of 8 these are quite a bit of extra income from them so for example you can have a clause that states a late fee of $50 for each monthly rent installment not fully paid within 10 days of its due date will be assessed to a tenant late fees shall be paid by the due date of the next regularly scheduled rental installment this will also put you in the best position under the summary proceedings Act and to make claims against security deposit if that arises laughter you don't have to raise your voice I can give you half you also want to address default and remedies in your leaves you want to state the tenants non-compliance with any covenant of this lease is a default landlord may have all relatives legally permitted including termination of this lease and declare over many rental installments immediately due and Owens you should also include that the landlord may terminate this lease on 24 hours written notice if the tenant a member of the tenants household or any other person under the tenants control unlawfully manufacturers delivers or possesses any sort of controlled substance now you need to make a formal place report in order for you to exercise this right and again it doesn't apply if you are the one smoking with your tenant property sometimes that does happen it does Michigan law prohibits you from South health this means you can now typically go and remove the tenant take doors off or anything like that with a victim the tenant so any language in at least authorizing this will not be enforceable and please do not get physical with your tenants that's a big no-no you should also specify utilities in your lease you Tonys can be paid by the landlord and included in the rent what are they can be paid by the tenant and it could be their obligation either way just make sure you specify for example you could have a clause in that states for the entire term tenant shall place utilities for the premises into their name maintain uninterrupted services and time you pay all utility bills if utilities service is separately meter to the premises and the tenants are to pay for the cleanest method for handling payment is to have the tenants put the service in their own names a landlord boss avoids estimating utility charges to figure them into the red or the middleman process of passing the charges back attendance by invoice you may also want to include in your lease some motivating tactics to make sure that payments are made timely the lease provision excluding the first month's rent but reinstating it if the tenant leaves or is he victim before the exploration of the lease is that a penalty provision and does not violate the law but might just motivate your tenant into paying timely and not being evicted or violating any the terms of the lease Bay Lord may terminate the lease because the tenants are chronically late with rent payments but you will want to be clear in your lease as to what constitutes a chronic late payment you might want to state something such as three late payments in a row constitutes a chronic late payment and is a violation of the lease and is grounds for termination you will also want to specify the security deposit amount included clause that tenants shall pay a security deposit of X amount before receiving possession of the premises any amount of the deposit that is returned shall be returned to the check payable back to the tenant now we're going to do a video entirely focusing on security deposits in the future just for now know that you need to include this language in your lease and most most landlords really screw up the security deposit so make sure you don't miss that episode I'll let you know the communication is fast and easy so you should include language in your lease allowing for electronic communication yeah I now have this so I can email notices to quit so much easier you must awesome you may also want to collect non-refundable preparation fees if you do you need to specify this in your lease for example tender shall pay a non-refundable preparation fee of X before receiving possession of the premises this can be used for background checks and credit checks as well as clean or or pet pees by including this clause you do bring greater attention to the condition of the unit at moving that would be experienced in its absence so having this clause may be a good thing or may be a bad thing but if you do include it make sure you have a nice place to run a little bit of an insect problem which is automatically used to [Music] another thing don't use the elevator that's a deathtrap now this is the place that I was telling you about it's real up got just one window face on a brick wall you still ready so blind me damn saying what they did to that dome you should also include a clause regarding keys a landlord may retain the key to the premises throughout the lease the attendants shall not change any live without landlords prior written consent okay doesn't work what the doesn't work you also want to specify when as a landlord you may enter the property landlord or its agents may enter the premises in an emergency situation or the performing pair's maintenance code inspections appraisals insurance inspections other purposes reasonably related to the operation of the building and to show the premises for sale or lease as well are you doing yeah just stopping by just wanna check up on everything in order to protect your investment you will also want to include a maintenance and repair clause an example closet be the tenant still maintain the premises in a neat clean and orderly manner the lease should specify how to notify landlord if repairs are needed yeah don't text me a 2 am that the faucet is leaking I'm not putting that in my lease and you can't text me 2 a.m. in the morning you would also want a full harmless clause in your lease where the tenant agrees for themselves for their heirs for the personal representatives to hold the Landlord harmless for all damages and liabilities that are a result of the tenants negligence or legal use of the property landlords this Clause covers harass and make sure you have it in there hey guys thanks for watching today's show I hope you learned all you need to know about drafting the leases if you do have questions please comment below or feel free to contact Dave or I our contact information is on our channel description now make sure you subscribe to the channel right now so you don't miss the next episode click the bell icon so you get the notifications win the next video Coast also please write a comment below let us know how we're doing and if you have any topics you'd like us to tackle for the next episode see you in the next episode cool I'll be good