There are over 43 million households that rent in the United States. Unfortunately, not all of those are 5-star tenants who end up upholding their end of the agreement. As a property owner, you need a lease agreement to protect you from those who end up breaking their terms.
Simply having a thorough rent agreement isn't enough to protect you though. You have to follow through and carry out the ever-so-tricky lease enforcement. Read on to learn how you should approach enforcing your lease terms!
Set Up a Thorough Lease Agreement
The foundation of a successful tenant/landlord relationship is a thorough lease agreement. It also ensures that you have maximized your protection against any issues that may arise.
These are just a few things that you need to cover in your terms:
- Rent rate, collection dates, late fees, "grace" periods, additional rent
- Utilities or other things the tenant is responsible for
- Quiet times, maintenance schedules, etc
- Damage or destruction and alterations to the property
- Penalties for breaking any of the lease terms
This is just a peek at what you'll need to cover. It's best to have a lawyer or property management company help you craft the best lease agreement. If the tenant did not sign on a subject then you can't be fully protected.
There are several things that you can do to reduce violations. This includes an appropriate rent agreement, tenant screening, walking through the property before move-in with the tenant, talking through the lease agreement, property evaluations, and more.
It's important to have a clear line of communication with the tenant. From the very start of your relationship, you should have a known method of contacting each other whether by email or phone. It's always best to have everything in writing though.
When there are violations, be sure to notify the tenant as soon as possible. In certain instances, you need to give them a chance to resolve the issue.
As previously mentioned, it's important to get everything in writing. This will help you create a paper trail in the case of any legal troubles. Keeping the appropriate records keeps you and your tenants honest. This will also help you create a timeline for violations, late fees, conversations, etc.
Rules Apply to Everyone
Remember that you are the boss and you need to enforce the rules to everyone. Treating all of your tenants the same is the only way to create a fair and professional business. Don't let people walk all over you either.
Hire a Property Management Company
Handling lease compliance can be very difficult. Many factors go into leases and people's personal lives. Hiring a property management company can save you stress and deliver you the best protection.
Protecting Your Investment with Lease Enforcement
Protecting your property and investment should be a top priority. The lease is there to lay out the rules but you must follow through with penalties when someone violates their terms. While lease enforcement isn't easy, it's necessary.
Are you looking to protect your investment and save yourself the stress? Contact us today to learn about our property management services.