Many people in New Jersey rent houses, portions of houses converted into apartments or even rooms to others to supplement their income. Some Bergen County residents may even be able to turn rentals into their full-time job.
That said, individual landlords will often lack the streamlined processes and massive resources of apartment complexes and other big real estate conglomerates. They must mind their expenses and conserve the resources they have.
One area they should not cut corners on, though, is their lease agreements. Leases spell out the rights and responsibilities of a landlord and tenant and explain what will happen if one side does not perform or there if is some dispute or problem.
Without a well-written lease, landlords expose themselves to significant legal risk that, if realized, can both financially cripple them and ruin their reputations. Even when renting to a friend or relative, a New Jersey landlord should still have a valid written lease in place.
On a related note, it is not advisable for a landlord simply to rely on a form lease or even a lease provided by a friend or fellow landlord without having it reviewed by their attorney.
Many times, a form agreement will not meet a landlord’s specific needs or fully account for their situation. In some cases, the form lease may not even meet minimum requirements under New Jersey law.
What should I include in my lease agreement?
At the most basic level, a lease agreement needs to describe what property is being rented, state how much rent is and when it is due and provide the term of the lease. There may be some other terms state or local law require.
Beyond that, basically any item that might be grounds for a dispute ought to be brought up in a lease. Items can include who is responsible for what repairs, who pays what utility bills, how much renter’s insurance the tenant will carry and rules and restrictions like pets or smoking policies. The lease should thoroughly address security deposits as well as late fees or other monetary penalties.
A good lease will also explain how the lease can be terminated and what will happen in the event either side defaults on their obligations.
A landlord should make sure they understand their options and alternatives with respect to their lease and be sure they have chosen a strategy that is in their best interest.