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Real Estate Investing : Landlord Last Updated: May 14th, 2012 - 22:24:01


All You Wanted To Know About Landlord-Tenant Lease
BuyIncomeProperties.com
 
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It is very important to know your legal rights as a landlord while renting out your property. Landlord-and-tenant disputes are inevitable when property is rented out. Laws governing disputes vary from state to state. Consult a local attorney specializing in landlord-tenant laws for all types of legal notices enforceable in your local county courts before renting your premises. 

Landlord-Tenant Lease

The landlord-tenant lease is a very technical document with court-approved terminology. It should be a federal registered instrument that is binding on both parties. The basic essential elements of this are:

  • Reference to both parties.
  • Subject matter of the lease.
  • Duration period of the lease.
  • Considerations.
  • Sub-lease.


Join a local landlord's association and meet other experienced landlords to learn more about landlord-tenant laws. Know the timetable for eviction in your county to handle any legal trouble from the tenants. Serve all types of legal or official notices to the tenant either in person or by certified return receipt mail.

Preliminaries Before Renting Your Property

Collect all the applications for the property to be rented. Show your property to be rented to prospective tenants as an open house at a specified time and day. Answer any types of questions pertaining to the property very sincerely and honestly. This saves time and also creates a feeling of competition between the prospective visiting tenants to bag it as a "prize." Most genuine tenants are willing to submit their application, screening fee, and security deposit on the spot to rent it right away.

Screening Tenant Applicants

Ask the tenant for a copy of his picture ID or driver's license. Match the picture to make sure the person in front of you is the same as in the picture. Check his Social Security card, too. You should see his payment balance sheet or credit history to make sure he has the ability to pay the rent regularly and has no bankruptcy history.

Landlord-Tenant Disputes

When a landlord-tenant dispute arises, it is unlawful to shut off the power, change the locks, remove doors, or attempt to evict the tenant from the premises physically or constructively. A lawsuit has to be filed to obtain a court order to remove the tenant. Eviction proceedings, called ¡°summary proceedings¡± or "unlawful retainer proceedings" then follow. Take a few essential actions before commencing court proceedings. Terminate the tenancy by serving a notice on the tenant as required by your state law. A three-to-five-day notice is usually given for non-payment of the rent. Serve the legal notice in person or by certified return receipt and numbered mail. Keep a copy of the notice with you as proof.

Find a good eviction attorney from the local real estate rental office and see how fast he can have the tenant appear in court to start legal proceedings. This will save you the financial loss. You can consider paying the tenant to leave, before commencing legal eviction proceedings. A litigation settled out of court may seem loss, but saves money in the long run.

Avoiding Landlord-Tenant Disputes

Beware of a tenant lease agreement, which may look innocent but tilt more in favor of the tenant. Always draw a landlord lease agreement covering all clauses. Have a quick-glance chart handy to remind you of renewal of lease or any other agreement. Make copies of rent checks for your own references. Raise rent regularly with every rent renewal.
Enforce late charges if there is a delay in rent payment. Draw the rent lease for one year only, with a few days' grace period for renewing of the agreement. Give proper notice by hand or mail if intention is non-renewal after the lease expiration date. Landlord still has to send a written notice for property vacation. Serve the notice before beginning of the next rent period, or serve in middle of the rent period, by post or by hand.

Security deposit cannot be used as rent. Get it signed before renting as a "word of honor." If the property is not vacated on time, use it as lawyer¡¯s fee after informing the tenant. Get a signed property condition report before renting, so that your property is maintained and returned in the same condition, as when it was rented. Get the references from their previous landlords, including their addresses, phone numbers, and periods of tenancy. Get a signed ¡°intention to vacate¡± form printed on the reverse of the lease agreement. Comply with state and federal disclosure laws for disclosure of unsafe substances on your property.

The landlord-tenant lease is an important document and should be made out carefully with the help of a real-estate attorney. You should have all the legal requirements in place, based on state laws, to protect yourself fully in case of any disputes.


 

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