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Where To Find A GREAT Tenant Rental Lease Agreement That May Surprise You | Mentorship Monday - YouTube
Channel: Derosa Group
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What is going on YouTube and our聽
community? This is Matt Faircloth.聽聽
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Welcome to our Mentorship Monday program. My聽
co-host Justin Fraser. Come on in, Justin.
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How's it going, Matt?
I'm great, man. How are you? And Justin,聽聽
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who we got today? Who's on Mentorship Monday?
Oh, today, I got to bring on my man, Paul. Paul,聽聽
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how are you today?
Are you guys good?
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Thanks for joining us today, Paul.
Paul, tell us your Mentorship Monday question.聽聽
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We'll see if Justin and I can help you out.
I've been a basement apartment owner for 15 years.聽聽
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I've owned three different houses with apartments,聽
so that's about as far as I want to go, but I've聽聽
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never really been happy with the leases that聽
I've had. I've kind of got them from friends,聽聽
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sometimes I got them from eviction attorneys.聽
They're a little bit too long for me. They'll be聽聽
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12 or 15 pages and just a lot. So, I'm kind聽
of wondering where you can get some good聽聽
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documents, more than just a lease, different聽
types of documents to going to use. And聽聽
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just somebody that's not too sophisticated,聽
where you can get that stuff pretty easily.
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Absolutely. Okay, great point, because a聽
good lease is something that's got ironclad,聽聽
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that's got you protected, but more importantly,聽
above everything is also legal, right? In聽聽
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the state that you're in. I could give you my聽
Pennsylvania lease, but there could be language聽聽
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in there that's not legal in Utah or wherever it聽
is you're landlording, so it's important to go聽聽
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state-by-state for when you pick up leases. Here聽
are a few places to go to get really good leases.聽聽
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Let's say leasing document could be the rental聽
application and all the way down in the list,聽聽
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and pet fee addendums, and all that other stuff,聽
right? So, here's a few ideas. I'll tell you what.聽聽
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I'm going to go back and forth with Justin, okay?聽
Justin, you ready? I'm going to name a place that聽聽
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Paul can go, to get a lease and you're going聽
to name one, then I'm going to name one, and聽聽
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whoever has to say, "I don't know first."聽
Loses, right? Okay. Are you game? Right.
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Cool.
Okay, cool. All right,聽聽
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I'm going to go easy. I'm going to say you could聽
go to a local real estate investor friend of yours聽聽
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that you happen to know that owns in the state聽
that you're in. That is a place that you could go聽聽
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to, a local other investor. That's a good place to聽
get a lease. Somebody who's got a reasonable size聽聽
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of unit, somebody who has stuff similar to what聽
you have, because the leases that an apartment聽聽
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building operator may have might not be applicable聽
or may have stuff in them that doesn't matter聽聽
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for a single-family homeowner or more importantly,聽
a single-family home lease might say things like,聽聽
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"Mr. Tenant, you're supposed to cut the grass."聽
Whereas the apartment building lease isn't going聽聽
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to say that. So fellow landlords-
I like the idea.
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That's a great one.
That is my first place.
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That's not the best one,聽
but that's a great one.
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That's why I wanted to go first, so I could get聽
the low-hanging fruit. There it is. All right,聽聽
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what's the best one, Justin? What you got?
The best one, I will say, is on BiggerPockets.聽聽
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And BiggerPockets... You don't like it?
No, I was going to go there. That was my ace聽聽
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in the hole.
Oh, man.
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I did not think you would think of that.
I'm a pro member, man. Listen,聽聽
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I don't know, I don't get compensated at all聽
by BiggerPockets for any of this, but listen,聽聽
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when I went to get a lease, I bought Brandon聽
Turner's Book on Managing Rental Property,聽聽
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and in the back of that book, it's a聽
nice, big, yellow book, and in the back,聽聽
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there's 50 different addendums, right?聽
The pet fee addendum, they have the lease,聽聽
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they have all this. And when that book came out,聽
there was a whole bunch of disclaimers saying,聽聽
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"This is just a generic lease, it's not specific聽
for your state." And so I had to take that and聽聽
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still go to an attorney and say, "Hey, does聽
this match our state?" And truth be told,聽聽
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I kind of brushed it off and just used聽
what I used, and that's fine, but now-
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Lalalalala.
Yeah. All my tenants have聽聽
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moved on. We're all good. Now, what they have,聽
which is great, they have state-by-state legal聽聽
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documents on BiggerPockets. And so I think聽
you just have to be a pro member to get it,聽聽
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or if you're not a pro member, I think they聽
charge you a 100 bucks or something like that.
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For 390 bucks a year for BiggerPockets pro聽
membership, you get access to all those leases聽聽
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for every state in the union, they got it.
Exactly.
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That was going to be my second source.
All right.
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Great one, Justin. All right-
What does it cost to be a pro member?
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390 a year.
390?
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Yeah. And between you and me, because I used to聽
teach their webinars, so I happen to know this,聽聽
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if you watch one of their webinars,聽
they'll give you a coupon code discount聽聽
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for a pro membership. So, they do webinars聽
once a week. David Green teaches some,聽聽
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Brandon Turner teaches some and that.聽
So, sign up for a webinar, you'll get聽聽
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great couple of hour worth of education for free,聽
and then as a thank you for being on that webinar,聽聽
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they're going to give you a coupon code for聽
upgrading to pro. And I think it's 20% off.聽聽
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So its worth takes 70 bucks-
That's a good deal.
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Yeah.
70 bucks off and聽聽
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you get an hour worth of free education too, so聽
I'd do the webinar. And the webinars are live聽聽
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too. So if you have questions, you can type,聽
"Hey, Brandon, what did you mean when you said聽聽
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da da da?" Absolutely, [inaudible 00:05:06] the聽
webinar. Now, but I'm not done yet, Justin-
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No, I get it. In the spirit of let's say that聽
Paul doesn't want to pay for BiggerPockets,聽聽
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or doesn't like Brandon's lease, or whatever.
Doesn't have real estate other buddies and doesn't聽聽
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want to pay the 390 bucks for BiggerPockets.
Sure, you've got other option.
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Justin, I got one more, the National Association聽
of Realtors and the real estate professionals.聽聽
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Any realtor in your state will have a Utah聽
Association of Realtors, a lease contract,聽聽
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and I'd be willing to bet 10 cents. Those are the聽
leases. The bigger pockets are using too, shhh.
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Actually, I don't know if it's the case or not.
Don't say, " I don't know." I don't know. You know聽聽
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what, I don't know that, but I know those are very聽
easy to get. And so, if I were BiggerPockets that聽聽
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I was to go give a bunch of leases to people that聽
have been vetted by attorneys already, and I've聽聽
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already that I know were already legit. I'd go get聽
the national spreadsheet [crosstalk 00:06:04]
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I think they... Because I'll say this the聽
reason I don't think that is because when聽聽
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I got that original version that was like聽
in the book printed. And then later on,聽聽
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when I went back and got the Jersey聽
version, they were actually very close,聽聽
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same sort of format. And it wasn't a totally聽
different lease. It was they tweaked some words聽聽
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here or there to make it or added an addendum聽
that made sense for Jersey. So I do think that-
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Okay.
Anyway, that's besides the point,聽聽
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but that [crosstalk 00:06:33].
Good idea. Good idea.
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If I use the one from Brandon Turner's book,聽
you're going to get a lot of troubles-
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No. [crosstalk 00:06:35]
Generic ones.
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Here's the thing. [crosstalk 00:06:38] He's got a聽
disclaimer in the book. There's a disclaimer there聽聽
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that says, wait, it might say something I'm giving聽
you this to you for educational purposes only.聽聽
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And if you... But BiggerPockets is going to give聽
you a Utah based lease for pro membership. But I聽聽
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would say contact the local real estate agent and聽
say, "Hey, I'll bet you that you've got yourself,聽聽
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a Utah association of realtors lease contract."
Okay. I'll give that one a shot too.
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What's that?
Yes.
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I'll give that one a shot too.
Okay. All right. That's mine,聽聽
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Justin. Back to you. What do you got?
All right. When you bought your house,聽聽
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you might've used a real estate attorney, or if聽
you're a landlord, you might have an eviction聽聽
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attorney or someone that you might be able-
Good point.
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...To call. Your attorney probably has聽
a lease or a very good lead on a lease聽聽
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that they can use or defend against in Utah.
No, he got one already from an eviction attorney,聽聽
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which I'm not surprised that eviction attorney聽
dropped the nine-inch lease on you or something聽聽
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like that, that was too big.
I like the simpler one, if-
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Sounds like something the attorney聽
would do. Okay. I got another one.
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[crosstalk 00:07:47] But do you think as聽
someone is realistic or their unrealistic?
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With that?
You think a five or聽聽
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six page lease is realistic or is that-?
Yes. That's it. It shouldn't be more than聽聽
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that. Because I'll tell you, you roll in聽
front of a judge with a 30-page lease on聽聽
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a residential contract. They're going to throw聽
your lease out of the court. They're going to be,聽聽
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this is ridiculous. You can't expect a layman's聽
person that doesn't know real estate to sign a聽聽
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30-page contract. A lease should聽
be four to six pages, I think.
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Oh, perfect. That's what I'm looking for. Okay.
Yeah. I think that's right. Anything shorter as聽聽
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well is not going to cover-
You want what's called a plain聽聽
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language lease. That's what it's called. And it聽
is these as a legal term for something that's not聽聽
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legal terms, right. Now, I got one for you.聽
Justin, thought I was dry. I'm not, Justin you聽聽
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better have another one in your pocket because聽
I got more. Here's another place you can go.聽聽
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Your local Real Estate Association, your聽
local REA, because what town you live,聽聽
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Warren? You live in Utah, right?
Well, between Salt Lake and Provo.
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Okay. Salt Lake, I'm sure, has a RE Association.聽
Provo is a growing real estate community,聽聽
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is a growing community. I know people that聽
are doing real estate deals in Provo. So聽聽
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like Neil Bob was doing some stuff in Provo.聽
So I bet there's real estate that REA groups聽聽
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in both of those areas. I would contact or聽
join or go to whatever those RE Associations聽聽
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and reach out to the head of that REA. And I'll聽
bet you that they even... They either have a lease聽聽
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package that they will sell you, or there'll聽
be nice and just give you their lease too. And聽聽
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that it kind is correlated to my other, go to聽
other landlord buddies. But those are organized聽聽
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landlord groups you might not be affiliated聽
with now. So I would go to them and ask them聽聽
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for a copy of all their lease documents. And聽
by the way, you and I keep saying the lease,聽聽
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but those organizations will only give you聽
a long list of lease documents. All right,聽聽
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Justin, Pow, back at you. What do you got?
All right. I mean I got one I don't love. We're聽聽
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getting lower on list [crosstalk 00:09:51]
Is Justin scraping? His scraping the bottom聽聽
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of the barrel, man. I'm not sure if I聽
got another one in my pocket or not.
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All right. So you could go to a website like聽
LegalZoom or Rocket Lawyer and get a lease.聽聽
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They will send you a lease for, I think it's...聽
You can make a free account. I'm not sure exactly.聽聽
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I've seen ads for like 19 bucks a month聽
or something. So you go, you make your聽聽
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monthly account, you download the聽
lease, and you cancel your account,聽聽
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and then you've got the lease. I'd聽
be, one, I'd be concerned about,聽聽
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how pertinent is it to Utah itself? And two, it's聽
something that you just downloaded offline. So聽聽
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I would want to vet it and make sure that聽
you're comfortable with it. I think all the聽聽
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other options, something that other landlords聽
are using or the real estate agents with a group聽聽
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are using are all really great ideas because you聽
know that someone is using it, and chances are,聽聽
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it's been tested by an eviction attorney. So聽
that's probably my least favorite option, but聽聽
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in the spirit of trying to not let Matt win,聽
that is something I had to come up with.
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It's a good one. Here's where I'm at, Justin.聽
I'm going to call it a tie because I was聽聽
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going to start scrapping and repeating聽
myself too and everything like that. So,聽聽
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but I throw out a few other ones that are聽
probably was going to reach to. That word is good,聽聽
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but I wanted to start throwing out bad advice just聽
to beat Justin, which I wouldn't stoop so low,聽聽
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but, I'd love to beat Justin, but I don't聽
want to give you bad advice to do it.
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Very good.
So few more ideas that are pretty good,聽聽
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but not the best. Call local property manager.聽
They're going to be, screw you, why don't you聽聽
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just hire my company? But if they're willing聽
to give you the lease, that then you could do聽聽
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that [Crosstalk 00:11:24]. But you only got three聽
units you could probably keep that going yourself,聽聽
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[crosstalk 00:11:26] a PM. But a local PM may be聽
willing to share their lease with you. I doubt聽聽
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that they would, but they may be willing to do聽
that. And that's another one that I was going聽聽
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to throw out as a possibility as well. But those聽
are some good ideas. And the other one was, I was聽聽
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going to say, was go to state of Utah's Housing聽
Authority. Every... There is a housing authority聽聽
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website out there. Even the section 8 office may聽
have a lease copy that section 8 automatic... Not聽聽
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that you're leasing the section 8, but any lease聽
it's okay for section 8. It's also going to be聽聽
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okay and legal in the state too.
Yeah.
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Sure.
So tons of good ideas,聽聽
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Paul. Great think, man.
I think it was a tie.
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I thought I was [inaudible 00:12:06]. I don't like聽
you now. It's a little healthy competition does聽聽
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always helps everybody. Right?
Yeah.
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So, well, good stuff, Paul, thank you. And聽
that, so we appreciate you being on the show,聽聽
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man. I did... we had to have given聽
you enough here, right? That's you,聽聽
[742]
you've got all these different ideas.聽
Your head must be spinning now, right?
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Yeah. I watched a lot of your stuff聽
though on YouTube, I appreciate it.
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You're welcome.
That's great.
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Even if-
You're welcome.
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Even if it's from New Jersey.
I know, it's New Jersey, Pennsylvania advice.
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Thank you again, guys. Appreciate it.
[crosstalk 00:12:40] Thank you for joining聽聽
[761]
us on Mentorship Monday, ma'am. Good Mentorship聽
Monday, man. We had some good ones lately.
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