As a landlord, your lease agreement with your renters is legally binding. That is, if you have a lease that’s legal according to your state and local laws and is specific to your property. Purchasing a standard lease and filling it out doesn’t always protect you and your tenants throughout the lease term. 

Your lease should include more than the names of both parties, the length of the lease, and the deposit and rent information. Landlords in Maryland can save time and money by addressing these five common mistakes with their rental lease agreements.

1. Not Knowing Local Laws

Each state has its own laws regarding rental properties. For example, some states limit the amount you can charge for the security deposit while others don’t. Some areas also have different requirements for what an up-to-code rental property looks like.

Standard lease forms don’t always reflect these variances in rental laws. Using one of these documents as your lease could lead to disputes between you and your tenants or may not make the lease legally binding.

Drafting a lease specific to your property that reflects your lease terms can help ensure you have a binding agreement to protect both you and your tenants throughout the lease term.

2. Failing to Include Landlord and Tenant Responsibilities

One of the purposes of a lease is to detail the responsibilities of both tenant and landlord. Never assume that tenants understand their responsibilities. Everything should be in writing to be enforceable.

For instance, tenants are typically responsible for changing lightbulbs and air filters, disposing of trash and recycling, and taking preventative measures to keep appliances functioning. Your lease agreement should also detail who is responsible for exterior maintenance.

Not including these responsibilities can lead to disputes and make it difficult to enforce the lease under your terms.

3. Overlooking a Cosigning Clause

If you’re a Maryland landlord with a rental property in an area where young people or students who may not have a lot of credit or references are part of your tenant pool, you might consider having a clause in your lease that requires a cosigner.

Overlooking a cosigning clause could put you more at risk to have a renter who may not be able to pay the full amount of rent as a student or people who damage the property and then disappear when you attempt to hold them liable.

With a cosigner, you can help protect yourself and ensure another party agrees to be responsible if a tenant is not able to pay the rent. If you do decide to include this clause in your lease, be sure to screen the cosigner just as you would your tenant.

4. Not Requiring Renters to Get Insurance

Requiring renters to have renter’s insurance should always be a part of your lease. Renter’s insurance helps reduce your risk as a landlord and provides coverage for your tenant’s items in the event of a disaster such as a fire or flood.

Renter’s insurance is affordable and even provides coverage in the event that someone is injured on the property, which can reduce your liability as a landlord. Failing to include a clause in your lease requiring tenants to have renter’s insurance is a mistake that can cost you time and money should an accident or disaster happen.

5. Neglecting to Include a Clause About Joint Liability 

If you allow numerous tenants to rent your property in a roommate situation, you should always include a clause in your lease regarding joint liability. The clause should state that each party is liable for the rent amount, meaning if one person is unable to pay, the others still have to pay enough to meet the full amount of rent.

Ensuring your tenants are clear on their joint liability when entering into a lease together can help protect you in the event that one person disappears, cannot pay the rent, or otherwise violates the lease terms so you can move forward with legal action against all parties.

Make Your Lease Enforceable

You don’t have to figure out all the details of your lease on your own. Working with experienced property management professionals can ensure your lease is enforceable in Maryland. Contact our team at FAS Management today to get started drafting your lease agreement at (202) 337-5080.