Unlock the Power of Digital Signature Legitimateness for Commercial Lease Agreement in Canada

How to eSign a document: digital signature legitimateness for Commercial Lease Agreement in Canada

- Finding a tenant can sometimes be a tough task. There could be weeks of searching, interviewing, and screening, just to find a tenant interested in their rental property. But once that tenant has been found, it's like a dream come true for the landlord. (chuckling) Yeah, because from this point, only one thing remains, the lease agreement. (upbeat music) (screen whooshes) (bell chimes) The complete lease agreement writing and signing process. (upbeat music) The lease agreement is essentially the document, or set of documents that will dictate the tenant's stay at the property. This document governs all aspects of the agreement between the landlord and the tenant. However, the entire process can be a bit long and confusing. For this reason, we have compiled the entire process into one convenient guide. By the end of this video, you will know everything about the lease signing process, including some tips to help you along the way. Speaking of tips, we have an entire blog post dedicated to the clauses that every landlord should include to protect themselves in a lease. Be sure to check that out. There's a link in the description right there. You can do that before or after you hit that like and subscribe button. (bell dings) So let's get started. Let's go over what the lease agreement is, and what it governs. So what does the lease agreement do? (upbeat music) Lease agreements, in their simplest form, are contracts that are agreed upon by both the tenant, and the landlord. These contracts are signed before the tenant moves into the property, and basically outline everything that both parties will be responsible for, throughout the entirety of the rental lease. Some of the things that are included in the lease agreement, include appointment of property manager, manager's responsibilities and obligations, compensations, lease term length, monthly rent amount, security deposit, and so much more. So let's go over some of the steps that most landlords, and property managers, should take before drafting the lease. Steps before signing the lease agreement. Decide on the kind of lease. The first thing that should be considered by the landlord, is the kind of lease that will be agreed upon. Since the lease is a legally binding contract, it is important to seriously consider the best way to have it. In some cases, having a verbal agreement with the tenant, serves as a binding, month-to-month tenancy. However, this is a very risky method, as there is not much proof of an agreement between the two parties. Even if it is a relative, or a friend, staying in the property for a few months, a written rental agreement, is always a good idea. A written, signed lease agreement, holds up far better than any verbal contract, and it serves as a better guarantee, that the landlord will receive every rent payment. Also, a written agreement is far more useful if something goes wrong with the tenant, and they need to leave the property. Thoroughly screen the tenant. One of the most important things to do before drafting or signing the lease, is to make sure that you have found the best tenant. The best way to do this, is by thoroughly screening potential tenants, and conducting a background check. If the tenant is not properly screened, or a background check isn't conducted, the landlord runs the risk of renting out to a troublesome tenant. This could bring countless problems to the landlord. That can cost way more than the cost of a background check, which is, like, $40.00. These tenants can even cause a loss of rental income, or worse, a lawsuit. A thorough background check and screening, also serves as a sign of whether or not the tenant will make timely payments. The reason for this, is that the screening reveals the payment history of the tenant. The landlord can also see if the tenant has been evicted before, or if they've had problems in the past. Along with this, most screening services, generate a credit report that contains all of the tenant's credit history in one place. This is a huge step in the approval process, as landlords typically won't rent to tenants with low credit scores. (upbeat music) Have the property prepared. Another thing that is extremely important before signing the lease, is to be sure that the property is up to date on any maintenance, and all major repairs have been done to it. This step is far easier, when you're dealing with an apartment lease, as there are not as many things to do, in terms of maintenance. The reason for having the property prepared, is so that the prospective tenant can see what the property is like, before signing the lease. If the tenant decides to take a tour of their dream apartment, and finds some flaws in it, they may decide to find another place to live. For this reason, it is absolutely essential, that the property be in its best shape before the tenant sees it. Now that you have some of these important things covered, it is time to get to the lease. Since there are so many things to add to a lease, we have covered everything in its own section. What to include in a lease? A lease agreement is typically around five to 10 pages, front and back, packed with information. If it sounds like a lot of information, that's because, it really is. It is also very important to abide by all state, and local laws in your area. If you wanna find out about all these laws, visit Doorloop's laws page, all right? There's a link in the description, right here, with tons of free resources for you. Okay, next, let's go over some of the most important points that should be included in your lease agreement. Names of tenants and occupants. One of the most important things to include in a lease agreement, is the name of the tenants, and occupants that will be residing there. That means that every adult person should sign the lease, or rental agreement. Although this may sound strange, it serves as, kind of, insurance for the landlord. And also, make sure that you write their names exactly as they appear on their IDs. Some people have more than one middle name, more than one last name, so, keep that in mind. Signing a lease, means that you're legally obligated to live up to the lease terms, including rent payments, and late rent fees. So if every adult in the property signs the lease, and the main tenant fails to pay rent, the landlord can, legally, pursue the other tenants to pay any late fees, or overdue rent. The agreement should also include some sort of clause, that states that only the tenants included in the agreement, may reside there. There can also be a set number of days, that someone else may reside in the property. Property details. (upbeat music) The lease agreement should also include a thorough description of their rental property itself. This means, the address, parking spots, and storage areas. The address should also include anything, like the building number, or the unit number. Also, if there is a sign, parking, this is where that will be explained and specified. Term length and rental price. (upbeat music) Since these are typically some of the most important aspects of a lease agreement, the first thing that should be mentioned, is the length of the lease. Rental agreements are typically month-to-month, and last until the landlord, or the tenant, terminates them. However, a lease is typically a year. So, it is important to specify how the length of the lease term works. Next, all the information about the rent should be included. It should include details, regarding any late fees, payment methods, grace periods, or any other fees. Also include information on the security deposit, which is typically, the amount of the first month's rent. Maintenance requests. Similar to having a way to pay rent, a tenant should also have a way to submit maintenance requests. There should be a requirement, that the tenant must alert the landlord of any defective, or dangerous situations. The lease should also explain that the tenant has a responsibility to maintain clean premises, and pay for any excessive damage. Any other rules or policies. In this section, the landlord should add any other rules or policies that they would wish to enforce. This could be anything that the landlord would like prohibited from the property, like pets, or smoking. The consequences of violating these rules should also be included, alongside this. Contact information. Lastly, it is important that the landlord provides the best ways to be contacted by the tenants. Although text messages and emails may be sufficient for certain discussions, written methods may be better in front of a judge. All right, so at this point, you have found the perfect tenant, prepared the property, and written the lease agreement. Now, it is time for the easy part, putting both signatures, on the dotted line. Hey, and remember, always let the tenants sign first, as you don't want to be stuck with vacant property. Happy renting. (upbeat music) (screen whooshes) (bell chimes)