Avoid Headaches and Maximize Financial Return with These Simple Tips!
Whether you plan on subletting or making your entire property available, renting out your home is a good way of covering mortgage costs while sometimes making a bit of profit to boot. It is ideal for people who own multiple properties or who are traveling but may be done in other circumstances, as well.
Renting does come with a few risks and downsides, however. As we have witnessed many times here at Ace Small Claims, financial disputes between tenants and landlords are not uncommon. Here are a few simple steps you should take before renting in order to avoid headaches.
Prepare meticulously. Try to anticipate any potential repair or maintenance complaints that a tenant might have and solve them before renting out your space. Once you have tenants, any repair issues that arise will need to be treated on an urgent timeline, which is always more expensive. Preemptively solving problems will also help foster tenant satisfaction, which is always a good thing.
Vet your tenants. A bad tenant can be a nightmare; failing to pay rent, bothering neighbors, damaging your property, and eventually ending up fighting with you in small claims court. That is why we recommend thoroughly vetting all potential tenants through applications, background checks, interviews, credit checks, and personal references.
Establish clear expectations. From uniform payment schedules to a written renter’s policy, establishing a clear set of expectations will help you avoid problems with your tenant, while also offering you documentation that will prove invaluable in the event of a dispute. Should you end up suing your tenant in small claims court due to their disregard for a rule such as occupancy limits, for example, showing a rules agreement signed by the tenants themselves all but ensures your success in court.