Landlord-tenant relationships have always been complicated. The landlord gets someone to reside in their vacant house, providing them with a steady source of income. And the tenant gets a place to live. On the surface, it appears to be a win-win situation for both, but often the situation is far from perfect.
Tenants and landlords commonly find themselves at odds with each other. Although as a landlord you want to do everything possible to avoid these disputes, sometimes they are unavoidable. Moreover, handling these issues can be time-consuming, stressful, and exhausting for both tenants and landlords.
Even though the tenant-landlord relationship has a stained reputation, it’s not always necessary it be that way. How is that possible, you might ask? By avoiding disputes! Here are a few ways to avoid disputes and save you from wasting time and incurring financial losses.
Always Screen Tenants
While there are various reasons a tenant-landlord dispute might happen, most of the time, it’s because your tenants are creating problems. Many of these disputes can be avoided if you have thoughtful and responsible tenants who abide by the rules and pay on time.
As a landlord, you have the right to thoroughly check the background of the person or family you are renting your property to. Thorough tenant screening lets you learn about the tenants’ criminal records, rent history, creditworthiness, and other important information.
Although screening doesn’t guarantee that there will be no disputes, at least you’ll feel at peace knowing you did your homework before handing over the keys.
Set Clear Expectations
After you’ve reached an agreement and done with other formalities, now is the best time to lay down some ground rules.
Think about the things that mostly cause disputes. It’s either misuse of property, untimely payments, or maintenance issues. Address these issues right from the beginning and set clear expectations of what you expect from the tenant. This will give them an idea of what can be tolerated and the off-limits things.
A welcome letter is a great idea. It will make them feel welcomed while informing them about the rules and expectations.
A Solid Lease Agreement
No matter how many precautions you take, you can’t completely avoid disputes. In this case, the best thing you can do is have a solid lease agreement. This document will be the basis of working through these disputes.
Both landlords and tenants should read through and understand the lease agreement properly.
If you’re looking to invest in rental properties, Insula Capital Group can help.
They are a provider of rental property loans and offer investors a great opportunity to obtain easy loans.
Connect with hard money lenders for rental properties and private residential mortgage lenders to get the financing you need.