Strong Lease
DenCO Property Management & Sales (DenCO) is a locally owned and operated property management company that has been doing business in Denver since 1990. Our residential lease agreement and all our addenda come from a 20-year effort reviewed periodically by attorneys to ensure it complies with current Colorado real estate rental laws. Our rental agreement template is straightforward but adaptable to the specific needs of each property. We add addenda on a need basis.
The lease lists the responsibilities of the tenant and the property management company during the rental agreement term. It behooves the property manager to go over the terms and conditions of the lease with the tenant before it is signed. Doing so sets a foundation for a successful rental experience. Below is critical information needed for a strong lease agreement.
All the Renters’ Names – Listing and requiring the signatures of all individuals turns the occupants into official tenants. The occupancy clause shows the maximum number of renters allow to live on the property. The contract should state how many guests are allowed in the rented property and their length of stay.
Term of Residency – Typically, rental leases run for 12 months with the agreement’s start date, lease term, and expiration date clearly stated. The tenants must give advanced notice to the property manager if they decide to renew or vacate the property.
All Fees and Payments – To avoid misunderstandings over fees, the lease agreement should clearly state the deposit and all payments associated with the rental. Be clear about the following:
- The exact amount of the security deposit.
- Who is responsible for paying water, gas, and electric utilities.
- Who is to pay for lawn service and snow removal.
- How does a tenant pay their rent, and what is the due date?
- State any rental payment late penalties.
- The number of days the tenant can expect the return of the security deposit minus any deductions for property damage or unpaid rent.
- Security deposit payment method.
Rental Property Maintenance – According to Colorado law, tenants can expect the roof, heating and cooling systems, plumbing, and appliances to be in good working order when they move in. Proper maintenance is good business since quick repairs keep tenants happy. Contented renters tend to stay in well-maintained rentals.
Avoiding Potential Pitfalls – Spelling out all renter expectations about property upkeep, minor repairs, battery, and filter replacements, and other responsibilities goes a long way to preventing future problems. It also gives property managers a legally binding document when they ask the renters to vacate the premises. Renters understand that we deduct all property damage repairs costs from their security deposit.
Bi-Annual Inspections – All rental leases should include a bi-annual inspection clause because they allow landlords to catch issues early and prevent any problems from getting out of hand. Inspections also confirm that the renters are following the terms of the lease.
Pets and Smoking – Property management companies who allow pets should include a pet addendum in their lease and require every tenant to sign it. The supplement clearly states the rental’s pet policy and all responsibilities expected of the pet owner. From 20 years of experience, DenCO believes a strong lease should not allow smoking in the home. Any pet or smoking addenda violation will be considered a breach of the residential lease agreement.
DenCO sends all new tenants a welcome letter summarizing all lease terms and setting leaseholder behavior expectations, which they must sign. We sometimes add owner instructions into the rental lease agreement on how to care for particular items in the home or meet HOA requirements. We follow up with a move-in letter and welcome basket. The move-in letter reminds tenants of their responsibilities.
Bottom Line
DenCO believes it is best to be proactive by having tenants sign strong lease agreements. A well-managed property raises the rental’s value and improves the enjoyment of the home, encouraging tenants to stay longer.
Rental property investors who want to use a strong lease should call DenCO at 303-722-9688 or fill out the property management request form on the contact us page.
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