In all the excitement of becoming a landlord, don’t forget some important tips that are shared below. You want to make sure you keep a good history with your rental property.
Best Approach To Rent Collection
There are many requirements for a legally-binding rental agreement between landlord and tenant. You, or the property management company you hire, must name the unit, the amount that constitutes the rent and other utilities every month, the term of the rent, the name of the tenant, number of people allowed to live in the unit, as well as some language that says the tenant is renting the unit from the landlord and managed by the landlord or Real Estate LLCs. Many tenants assume they have paid the last month rent along with the first month when it is actually the security deposit that they have paid. Ensure that they understand the consequences of breaking the agreement. Even if the tenant is a relative or colleague, treat the agreement exactly as you would with a stranger. Additionally, you want to specify the means to collect the rent, whether the tenant is to pay by cash, check or credit card. Usually, rent collection is better handled through a management company. Any delay in paying the rent may incur late fees as well. All this information should be clearly specified in the signing agreement.