10 Rental Documents to Keep on File

Why Record Keeping for Landlords is Important

There are many reasons independent landlords should keep thorough, detailed records. Staying organized and keeping strategic files can help landlords:

• Better protect against potentially devastating lawsuits
• Contend with tax responsibilities
• Promote transparency with tenants

Protection for Landlords Against Potential Litigation

DISCLAIMER: Please be mindful that we do not intend this below information to be complete or as legal advice (and you should not treat it as complete or legal advice). Before following any of these tips, please consult your legal counsel for guidance based on federal, state and/or local laws, and to assist with any questions to determine how these tips may be conducted or impact you.

Even if your tenant screening process goes smoothly, you may find yourself in a dispute with a tenant who seemed like a great fit. According to Realtor.com, the most common reasons tenants sue their landlord include:

• Discrimination, such as violations of the Federal Fair Housing Act.
• Violating a tenant’s right to privacy: When you lease your property, you can’t enter the unit whenever you please. Except in an emergency, you’re typically required to provide advance notice before showing up. Urgent entry situations and notice timeframes should be explicitly stated in your lease. Note that, these housing laws often vary by state, according to the U.S. Department of Housing and Urban Development.
• Wrongly using or withholding a security deposit: If a tenant moves out, take pictures of any damage you notice beyond normal wear and tear. Only a small population of landlords report returning a security deposit in full, so it’s likely you may need to keep a portion of the deposit to cover repair costs.
  
  If repairs are required, you may need to provide your former tenant with an itemized receipt of expenses—including the billable labor and raw materials used—and return the remaining amount within a specified time frame or risk a lawsuit. 

• The apartment is uninhabitable: Tenants have the right to a livable space, through the implied warranty of habitability. You have a responsibility to provide some necessities such as heat, water, sturdy floors, structurally intact walls, strong roof, or absence of significant danger (e.g. from lead, asbestos, mold, etc). If you fail to keep the property in a habitable condition, you might get sued.

• Injuries that occur in the rental unit. If a tenant is injured due to a landlord’s negligence, they may have a case. In your rental agreement, spell out what maintenance you’re accountable for and which repairs fall on the tenant.

In addition to the above considerations, a few additional watch outs include:

• Charging excessive late fees: According to legal site NOLO, there are laws that govern the limit on late rent fees, which vary by state. Make sure your lease outlines when a fee will be assessed and exactly how much your tenant will pay.

• Using generic or outdated lease agreements: If you don't update your lease regularly, it might contain outdated and potentially outlawed terms. For example, on changing eviction laws. 

Documentation for Potential Legal Action

Landlord forms and rental documents can also provide evidence if you ever need to take action against a tenant. Here are some common situations where landlords might take tenants to court:

• Unpaid rent: 84% of landlords agree that a tenant’s failure to pay is their top concern. If you’re struggling with a tenant who hasn’t paid, you may have to send a form notifying the tenant to pay rent or quit the lease. If that does not work, you may be able to file an eviction and sue for rent owed.
• Damage to the property: Your rental document should state you have the right to deduct expenses from the security deposit to repair property damage. If the deposit is insufficient to cover all costs, you may be able to collect the rest through court action.
• Recover money due to an early move-out: Tenant turnover and rental vacancies can land a serious blow on your income—especially if a tenant moves out abruptly or violates their lease. In some cases, you may be able to recover lost rent in court.

How to Create a Rental Application:

There are several different ways to put together a rental application and ensure you’re asking the right questions.

• Refer to your local real estate association
• Create your own, following trusted guidance
• Find and adapt a rental application from the Internet

Whatever method you choose, it’s a good idea to run your application by an attorney specializing in rental law before putting it in front of potential tenants.

3. Lease or Rental Agreement Documents

A lease or rental agreement certifies a tenant can occupy a property for a specified period of time. It also defines the rights and responsibilities of both landlord and tenant. As noted earlier, the lease can be your ally if it comes to future disputes.

The exact rental terms may vary, but should generally include the following:

• Your role, duty, and rights as a landlord
• Tenant’s responsibilities and rights
• Dates and terms of the lease
• Protection of property and tenant accountability
• Payment terms, including when rent is due and how to pay
• Outline of the eviction process

Many landlords are concerned with two potentially bad outcomes: 1) tenant payment problems and, 2) a potential eviction . Writing a detailed lease is essential, as it’s proof of the signed agreement you made with the tenant and will be useful if you ever have to go to court over a dispute.

4. Rental Pet Policy Forms

If your rental property is pet-friendly, have a documented pet policy on file. Tenants should sign this landlord document, which may include the need for an additional pet deposit, pet rent, cleaning, or expected pet owner responsibilities.

5. Welcome Letter for New Tenants

A welcome letter is a friendly greeting for your tenant that also provides helpful information. It may explain details such as:

• How to set up utilities
• How to get renter’s insurance
• How to pick up keys
• How to use laundry unit/room

They may be simple, but welcome letters ease the transition for your tenant and benefit your landlord-tenant relationship. Like any landlord documents, it's important to consider rental regulations in your area to make sure the letter is appropriate. If you're looking for a reference the housing site Zillow has a detailed guide to create a welcome letter.

6. Tenant Move-In Checklists

A move-in checklist helps you keep track of the condition of your property and holds your tenants accountable for any damage that occurs while residing there. Without the checklist, it’ll be your word against theirs post move-out.

This rental document also provides peace of mind for tenants, as it assures you won’t charge for pre-existing damages. Go over the checklist with your tenants at move-in and again at move-out. This will help determine if the tenant has damaged your property beyond normal wear and tear.

7. Lease Renewal Paperwork

Lease renewals can help landlords save time and money and offer many benefits, including:

• Eliminating the cost of finding new tenants
• Helping reduce the risk of vacancy
• Helping reduce the risk of an incompatible tenant moving in
• Retaining a tenant that’s already familiar with lease terms

Be proactive with your renewals and ask your tenant 90 days in advance whether they wish to renew the lease. There are many sample renewal applications available online that you can use as a starting point.

8. Move-Out Letter

If your tenant plans to vacate the property, you’ll want to send a move-out letter before the lease ends. This landlord document sets expectations, such as a tenant’s responsibilities before vacating the property and how you’ll return the security deposit.

On average, one month of vacancy may cost a landlord $1,750, but time wasted due to cleaning, overstays, or missing keys can lead to greater loss. Keeping good documentation can help reduce vacancy and ease the stress of turnover.

Create a move out letter that includes at least the following:

• Cleaning requirements and expectations
• Date and extent of your final rental inspection
• Security deposit deductions
• How and where to return any keys
• Important reminders
• Request for a forwarding address

9. Tenant Move-Out Checklist

A tenant move-out checklist spells out a tenant’s responsibility when vacating your rental property. Consider attaching this checklist to the lease agreement, so your tenant understands their responsibilities right from the start.

A move-out checklist is mutually beneficial. For landlords, the rental space is left in better condition. For tenants, there's a better chance of getting the full security deposit back.

10. Communication with Tenants

Within your rental documents file, keep track of all correspondence with tenants from the moment they apply until after they move out. This may include:

• Email chains
• Text message screenshots
• Dated notes from telephone/in-person conversations

Should you ever need to contest a conversation, having detailed records could help protect you.

How Landlords Should Store Important Documents

One of the most important tips for new landlords is to keep digital records. Scan your rental documents and save the files on cloud storage so that your forms stay organized. It’s wise to keep hard copies in something like a fire-retardant safe deposit box, as well.

Then, when you no longer need the documents, it’s essential to dispose of them in the proper way. Guidance from the Federal Trade Commission states that any documents containing protected consumer information cannot just be thrown out––they must be destroyed completely. 

How Quality Documentation and SmartMove Can Help Protect Your Rental Investment

There’s no sugarcoating it. Being an independent landlord isn’t always a picnic. If you don’t protect your investment with proper documentation and tenant screening, you could be left with nothing but crumbs. SmartMove provides fast, online tenant screening reports that give landlords crucial tenant background data, right on the spot.

Unfortunately, all the documentation in the world can’t protect you from a destructive, ill-fitting tenant. You need to do your best to choose top tenants from the start. Criminal record checks zip through millions of crime records from state and local agencies, searching for a potential match to your applicant. Meanwhile, past eviction reports may help discover if there are any eviction-related court proceedings potentially connected to your potential tenant.

Get the financial data you need to back up your gut instinct. Help verify your applicant income and financial track record with a tenant credit check and Income Insights. Plus, included with every SmartMove screening package, a ResidentScore helps predict future evictions 15% better than a traditional credit score alone.

Easy, online screening means landlord background check documentation is accessible and conveniently stored. Fast, reports mean you may be able to screen tenants and sign the lease on the same day.

Choose feast over famine. Screen with SmartMove and help protect yourself from the start.

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