8 Ways to Avoid Landlord Woe   

Rule one: Screen the applicants

 

"You have to find out whom you’re renting to, and a credit check will turn up any criminal or eviction history, too," says Brian F. Edwards, a University of Connecticut real estate lecturer, past president of the state’s property owners’ association and co-author of "The Complete Idiot’s Guide to Being a Smart Landlord."
The check will cost the applicant about $40, but he’ll probably agree it’s worth it when you explain that everyone in the building gets screened -- good protection for every tenant.
Of course, even a thorough credit check won’t tell you everything.

 

Rule two: Get it in writing

A verbal agreement isn’t enough. You have to have a clear, thorough and legal agreement on paper for everyone to understand -- and sign. Make sure the agreement specifies:
• The name of every adult who lives in the rental, making each responsible for all the terms. If one roommate skips or can’t pay, the other will be responsible for the full rent.
• That the property is the residence only of those who have signed the lease. This lets you screen residents and gives you legal right to evict a tenant who adds someone without your permission.
• How and when complaints will be handled; when rent is due; what, if any, repairs or alterations are permitted; the amount of security deposit, how it may be used and just how it will be returned, as well as how any deductions will be accounted for.
• Any forbidden illegal activities, excessive noise or disruptive behavior on the premises, and the landlord’s right of access.
Go over a pre-occupancy inspection checklist. It’s a good idea to photograph or videotape the property, in case you need to prove damage later.

Rule three: Insure yourself & have the Tenant do likewise

Take out special rental insurance that covers liability and property insurance, because your homeowners policy usually will not cover you for renters.
You’ll need protection against damage, if your tenant trashes the place & you need to file a claim for vandalism. You’ll also have coverage if your tenant somehow injures himself and claims it’s your fault.
Your tenant should have “tenants insurance”, so all their possessions are covered as your insurance will not cover other peoples belongings if they are renters.

Rule four: Protect your tenant

You should offer reasonable safeguards against crime and other dangers, ensuring that your property is secure and safe. Most states have strict regulations about smoke detectors and their locations. "For six bucks, it’s worth protecting your investment and your tenant’s life," says Edwards. Also, you must reveal any hazards, including potential lead-poisoning sources, to applicants.

Rule five: Keep it up

Protect yourself against losing good tenants or attracting lawsuits by keeping your property maintained. Substandard conditions can lead to injury or illness. Remember, landlords are the most frequently sued of any business group. Letting your property decline can lead to tenants withholding rent, disputes over who is responsible for what and even result in the tenant legally moving out without notice.

Rule six: Get help

If you aren’t comfortable dealing with people, or are a long-distance landlord, get a professional property manager to handle emergencies and prevent problems by visiting the property regularly. What’s more, tenants appreciate a manager who schedules appointments, asks about problems and follows up on repairs.

Rule seven: Don’t say no to pets

At least, don’t do so automatically. Pets are not always a negative factor, and by considering tenants with pets you’ll increase your occupancy rate. One survey showed, ironically, that the dogs apartment managers favor -- those 20 pounds or less -- often are dogs with attitudes and are not inclined

Nine of the top 10 dogs for apartment living were bigger than 20 pounds. One author rated a golden retriever the top dog for apartment living, even though these dogs typically weight about 70 pounds. Retrievers and other similar breeds are bred to please and are easily trained to being "crated" while their owners are away.

Rule eight: Mediate disputes

Mediation has achieved astounding acceptance by both landlords and tenants as a way to resolve disputes, and you often don’t even need an attorney, explains Edwards. "Many states & provinces have local housing courts, and you’ll first see a housing specialist who will hear the facts before a judge does. Both sides air their grievances and in almost all cases, the mediator works it out before it gets to court. It’s inexpensive, it’s confidential and it works." Know all the rules & regulations in your province.

Invest in taking all the courses available from The Landlord & Tenants Association in your area, as it will pay off in spades.