The thought of a troublesome tenant is something that can scare any property owner. Some states that are considered tenant friendly like California or Arizona, and that makes it much more difficult for property owners to deal with unreasonable tenants. One of the best ways to curb an incident from a tenant, like lack of rent, or damage to the property, is to protect themselves through clearly defined lease terms. More often than not a lease is put together by a landlord or real estate professional, and the basic rental forms are used. These forms can be added to, so that there are additional regulations and stipulations present.
Some Tips for the Lease
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One the biggest complaints by a property owner is that tenants are always late with the rent. Placing specific wording in the lease to affect of:
1. Eviction processes will begin on the first day after the grace period that rent has not been received. This is a great motivator to keep tenants on time.
2. Tenant shall pay (choose a percentage) of the total monthly rent in late fees after the grace period has ended for that month. This will remind them that the payment will begin to grow if not paid on time.
As a property owner, it is vital to not only protect yourself, but also to protect the investment interest. Rentals today are, more often than not, homes that could not sell, and owners could not afford to remain in the home. In fact, more homeowners are renting while they themselves rent out their own homes to tenants.
Constructing a Good Contract
If there is a stipulation listed within a lease agreement, and the tenants/renters agree and sign that agreement, then all that is listed within becomes binding. This is a great way to ensure that tenants will not take advantage of the property owner.