If you are thinking about buying a rental property or if you already have one, you may have to deal with some tenant issues. Hopefully you will find ideal tenants the always pay the rent on time and never complain, but in case that does not happen it’s best to be prepared. We have put together some tips regarding some of the issues that may come up if you are a landlord.
Breaking Lease agreements
Usually, tenants are provided with a lease document stating all the relevant rules. Landlords should provide new residents with written rules to avoid problems regarding tenants moving out or abandoning the property without prior notice. Most lease agreements come with termination statements which demand early notification when someone needs to move out. If one fails to honor the terms written, landlords have the right to take the matter to court, especially if debts exist or there are massive damages caused by the tenant
Repair and disturbance issues
Sometimes minor repairs need to be done and the responsibility mostly falls on the landlord to handle these. However, repair costs will vary as tenants can sometimes be responsible for excessive damages caused intentionally or unintentionally.
Property owners should have clients sign a violation policy where terms and conditions minimize disturbances. For instance, you can have an agreement preventing loud noises or parties.
Landlords must issue eviction notices before demanding residents move out. There is a process involved with evicting a tenant. You also need to give them the appropriate time to move out. Your realtor can let you know where to find the proper resources so you can learn to evict a tenant properly without breaking any rules.
As a landlord, you may be able to deduct up to 100% of your rental losses every year.
But, if you rent to your friends or family, you may lose many of your tax deductions.
Before increasing rent, notify tenants with proper notice. Some residents will accept the increase while others may look for a new residence. Either way, landlords should be careful when increasing the monthly rent.
It is advisable to include a security deposit when the tenant moves in. The amount is usually similar to the rent. A security deposit acts as an insurance policy for a landlord and a saving mechanism for the tenant. If a resident fails to pay rent for a month, the security deposit may cover the payment.
Deductions from the security deposit are taken when tenants leave their residence in worse condition than how they initially found it. Commercial buildings sometimes have a 3-6 month deposit, and unlike residential properties, tenants are more likely to abandon the space without notice.
As a property owner, you must respect resident’s privacy as access without their permission may be deemed trespassing. If a landlord wants to come into a tenant’s home to make non-emergency repairs, or inspect the apartment, they must give “reasonable notice.” This means at least 24 hours notice. … Exception: If there is an emergency, a landlord can enter after a shorter notice or without notice.