Handy Tips For Landlords. Get Your Agreement Right
If you are thinking of going into the business of property rental there are a few things you need to make sure you are aware of. Even after you have gone through the difficult process of choosing tenants, there are still things you need to be cautious about. You need to make sure you have a good legal rental agreement. It may even be worth getting one drafted by a solicitor, though this can be expensive. Make sure you have also put some thought into how you will collect the rent.
Rental agreements can be a tricky area for landlords, and it is vital you get them right. They need to be well written so that they are legal and you need to make sure they do the job of protecting your rights and your investment. Some areas you need to take into account when setting out this agreement are; type of tenancy, duration of stay and the review period and procedure for the rent amount.
For most landlords and tenants in a domestic situation a periodic tenancy works best. This usually means the property is rented on a month to month basis. The advantage of this for you as a landlord is that to finish an agreement with a tenant you need only give written notice thirty to sixty days in advance of when you want the tenancy to end. It is important to keep in mind though that this means the tenant who is renting your property also has the same right, which could leave you with an empty property on short notice. It is important you research all the different types of tenancies before settling on the one that is right for you.
Sometimes it will be necessary to raise the rent on your property to let. This can cause friction with your tenants but this will be less so if you have made it clear from the start that there will be a review of the rent every couple of years.
Collecting the rent is also another area you need to be very clear on with the person renting your property. You need to make sure that the method you decide upon is best for you and the person renting. It may seem like a good idea to collect the rent in person if you live close but some tenants may not like their privacy being disturbed like that. A deposit into your account may be a better option.
It can be very difficult to know exactly what to put into a tenancy agreement, especially if you lack experience. Drafting one can make renting your property a bit of a headache and you really don’t want to get it wrong. Sometimes it may be easier to just take the task to an expert in the field.
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