Renting Out a Property
The most important part of renting out a property is to establish a good lease.
The lease is the legally binding agreement between the renter and the tenant and gives the tenant the right to occupy the renter’s property.
Once a lease is established, the tenant is legally obligated to pay and the renter is legally obligated to allow the tenant to stay as long as the payments are being made.
Lease terms need to include the name of the tenants, the address of the property, contact information for both parties, amount of the rent, how often its paid and when.
And other details like the security deposit and amount of notice required to terminate the lease.
The lease should also determine the responsibilities of the renter and tenant including who is going to take care of maintenance and repair of the property.
A security deposit is essential for anyone renting out a property.
A security deposit can help cover the costs of damage caused by a tenant.
It can also be used to cover unpaid rent or cleaning costs.
Some states have certain requirements regarding security deposits such as any security deposit received being placed in a special bank account or even the obligation to pay an interest rate on security deposits received.
A security deposit should never be overlooked, should always be collected up front and should have terms outlined in the lease.
If a tenant refuses to pay, you will need to take legal action against them in the form of an eviction.
An eviction is a legal proceeding that is able to remove a tenant from a property if they meet certain criteria.
You can’t evict a tenant for no reason during a lease.
They must not be paying, have violated the lease in some way or refuse to leave at the end of the lease.
Finally, this is definitely one of the worst parts of renting out a property.