Assured Management is an industry leader in property management serving the West side of Denver Metro Area.
Your lease agreement is the most important document that you’ll sign with your tenant. It’s meant to protect you and your property, and it’s also something that the tenant can use to answer questions during the tenancy. It’s important that you use a lease which is enforceable in Colorado and compliant with all federal, state, and local laws. We don’t recommend that you simply download a sample lease from any website you find on the internet. Get a professional lease from a professional property manager or a real estate attorney.
Every lease will vary depending on the property that’s being rented and the people who are involved. However, there are a few things that you absolutely need to include in your lease agreement.
Contact and Identifying Information
Every lease should include the names of the landlord and the tenant. You’ll want to provide the property address as well, with a description of what the property looks like. For example, you’ll state that it’s a single-family home with two stories or a unit in a fourplex with private parking. List the names and ages of all occupants as well, even if they aren’t old enough to sign the lease. If there are pets, describe the pets and include a copy of your pet policy so the tenants have something in writing regarding responsibilities and expectations.
Lease and Renewal Terms
The lease agreement must include the effective date of the lease and the day that it ends. Most leases are one-year in length, but yours could be 18 months or six months. In addition to the lease term, your agreement should also reference the procedures that each party must follow when the lease is ending. The tenant will have to notify the landlord within 30 or 60 days of their intention to move out, for example. Or, the landlord will have to offer a lease renewal 30 days in advance of the lease ending. Or, the lease could convert to a month-to-month agreement at the end of the term.
Rent and Security Deposit Payments
Note the amount of security deposit that the tenants paid, and specify when it will be returned. Colorado law requires that you return the deposit within 30 days of the tenants moving out, unless your lease specifies otherwise. The maximum amount of time you’ll have is 60 days.
You need to stipulate how much rent is due every month, how it should be paid, and when it’s due. If there’s a grace period, make sure your lease reflects that. If you’re implementing late fees once the rent payment is late, your lease agreement must include that information as well as any other consequences to late or unpaid rent.
Additional Rules and Responsibilities
Beyond the required information, your lease should include everything you want the tenant to know about the expectations you have while they’re living in your property. Many landlords have non-smoking homes, which means tenants are not permitted to smoke anything inside the property. You might want to include limits to how long guests can stay in the property and the number of cars that can be parked in the driveway. Make sure you’re detailed and you cover everything because this is the first place you and your tenants will go if there’s ever a dispute.
We write and negotiate leases for our rental property owners every day. If you have any questions, please contact us at Assured Management. We’d love to be your Lakewood property management resource.