Change of Terms
I remember the first time I heard the statement “The only thing in life that is constant is change” it was quite an epiphany for me. After all, in many cases, we would all love to keep things the way they are and in managing rental properties it is no different.
We all know that changes will also come along when it comes to our rental properties… changing of Tenants (typically in a roommate situation), extending the lease, allowing a pet and requiring a pet deposit or changing the amount of rent (typically along with the extension of the lease.) What about taking care of the legal side of these changes? Do you have to completely re-write the lease and all the documents that go with it (gee, I hope not!)? Well, the answer is NO! In fact, we strongly recommend that all of the original documents stay just exactly as they were when they were first executed. Changing everything only increases your chance of making an error or an omission… there are simply too many little check boxes and blanks to fill in to hope to get them all exactly as they were on the original. So what to do? We have found a document that makes dealing with all of these changes literally a “piece of cake” and it is a “Change of Terms”.
The Change of Terms actually relies on and embraces the original lease documents and it’s language is very simple. The Change of Terms state: “All terms and conditions of the lease for the property: 123 Change Street, Beautiful California, (your property’s address), Dated January 1, 2020 (original date of your lease document)remain unchanged except for the following: (this is where you spell out the change): The term of the lease has been extended until December 31, 2022, and the rent amount effective January 1, 2021 will be $2,050.00 per month.” Everyone signs and dates and life is great!
In summary: Change is nothing to be feared with your rental property. With the “Change of Terms” you can deal with the change handily and focus your efforts on something more productive like… looking for that next property!
As always, thank you for reading!
Pat & Kris
We have produced a short video on the subject of using the Change of Terms. CLICK HERE to see it.
If this tip has been helpful to you, please visit our website at: ManageToMakeMoney.com where you will find the “Change of Terms” I spoke of as well as many more tools, tips and techniques for managing your rental property profitably.