What is RentDirect with Lease Collection?
Most rental homeowners want to get paid much faster, avoid waiting on tenant rent payments to process, stop worrying if tenant will pay rent or not and much more. This is usually the downside of the rental property business although renting properties have many benefits. As professional industry experienced property managers, we’ve successfully managed the day to day operations of our clients properties and discovered many of the frustrations some homeowners experience which are sometime unavoidable as rent payments aren’t always guaranteed to be on time from some tenants. As a solution, The Lease Collection has recently launched a new program that offers our clients, investors & residential homeowners with qualifying rental properties the opportunity to rent directly to our experienced management company.
Make life easier
Slash payment processing time and get your rent payment on or before the 5th of each month.
Reduce the amount of time you spend waiting for tenants to make rent payments. We will enforce the lease terms with subtenants and handle all the legwork.
Avoid late payments
Funds are automatically transferred via Direct Deposit from our company bank account to yours
How does it work?
The Lease Collection is now partnering with residential homeowners, investors, developers and existing clients with qualified residential rental properties and offering them the opportunity to establish or renew their lease agreement and sign a Consent to Sublease Agreement that allows The Lease Collection and their experienced property management team the option to sublease their rental properties. The Lease Collection will then become a sub-landlord and rent out a portion (or all) of the property to a select tenants, known as the subtenant. Homeowners Can Now Get Paid Much Faster and On-Time!
In this agreement, The Lease Collection retains all obligations to the landlord in addition to being liable for damages or lease violations caused by the subtenant. Landlords will receive a FREE CMA (Competitive Market Analysis) Report, negotiate fair market rent price with The Lease Collection and get paid via direct deposit every month from The Lease Collection. Forgoing, The Lease Collection will continue to maintain the responsibility to collects rent from the subtenant and manage the landlords rental property.
Who is the landlord?
The landlord is the person who owns the rental property and who the sub-landlord is renting property from.
Who is the sub-landlord ?
The sub-landlord (or the original tenant) will be The Lease Collection professional property management which is the entity who entered into a lease with the landlord, and who is now leasing all or part of the landlord’s property to the subtenant.
Who is the subtenant ?
The subtenant or sublessee is the person who is entering into a lease to rent some or all of the landlord’s property from the sub-landlord.
What is an original or master lease?
The original lease, also known as the master lease, is the Residential Lease Agreement that the sub-landlord (the original tenant) entered into with the landlord.
Do I need to provide the subtenant with a copy of the original lease?
Yes, the subtenant is entitled to a copy of the original lease along with a copy of the Residential Sublease Agreement. The sub-landlord can include a copy of the original lease with the sublease agreement or can deliver a copy directly to the subtenant.
Does the subtenant need to follow the terms of the original Residential Lease Agreement?
Yes, the subtenant is responsible for following all of the terms and conditions set out in the original lease.
This means that they must follow rules for smoking on the property or in the suite, pets, guests, and anything else listed as a term or condition in the master lease.
Can the original landlord terminate the Residential Sublease Agreement?
Similar to how the original landlord can terminate the master lease if the original tenant doesn’t follow the responsibilities listed in it, the original landlord can also terminate the sublease if the subtenant does not follow the responsibilities set out in the master lease.
What are the Qualifications?
1.) The Lease Collection agent specialist must conduct an in-person property visit.
2.) Homeowners will be provided with a FREE CMA (Comparable Market Analysis) Report for review.
3.) The Lease Collection agent specialist will take into consideration each rental property location, condition, size, square footage, price etc. which rent payments will be negotiated based on fair market rent and/or FREE CMA Report.
4.) If the rental property qualifies, Landlord and The Lease Collection must establish a Lease Agreement with Consent to Sublease Contract.
5.) Must be a residential property located in Washington Metro Area (DC, MD and/or VA)
6.) If property is currently occupied, The Lease Collection will request to review current leaseholders personal and financial records for final decision. Existing tenant must have a consecutive payment history of 120+ days or more.
Will you require a damage/security deposit?
A damage deposit is a sum of money paid by the subtenant to the sub-landlord as collateral to cover any potential damages that the subtenant may make to the rental property. The Lease Collection requires subtenant to provide the sub-landlord with the damage deposit at the start of the sublease term. The sub-landlord holds the damage deposit for the term of the sublease to help ensure that the subtenant does not default on the terms of the Residential Sublease Agreement or otherwise damage the property.
Should the subtenant damage the property (“normal wear and tear” excluded), the sub-landlord is entitled to recover the repair cost from the damage deposit. At the end of the sublease term, the subtenant will receive the deposit back minus any deductions for repairs.
How much is the damage deposit?
Damage deposits are usually equivalent to the value of one month’s rent. The maximum amount a damage deposit can be is usually governed by each jurisdiction’s legislation.
Is the subtenant required to have insurance?
The Lease Collection requires all tenants to have and maintain a minimum of $100,000 in renters insurance. All tenants are requires to complete a rental application and undergo a full background and credit screening upon being qualified to rent properties managed by The Lease Collection.
To learn more, find out if your property qualifies or request to sign up, call and ask to speak with one of our agent representative today