For current real estate investors, the allure of profiting on rental properties is powerful, especially in a market so gung-ho about renting. Rightfully so?many young people are working 9-5 and looking to make an extra buck managing property they already own, increasing their wealth via passive income in order to pay off massive student loan debts, etc. If you, like so many, are preparing to embark on a career in property management, there are a few pieces of paperwork you?ll want to have in order.
Even if you?re choosing to rent to friends (the team at Jason Hartman recommends you don?t) you?ll want to have a formal lease agreement in place. Odds are, your rental property is your most significant investment, and should be treated as such. A good lease will protect both the landlord and the renters and will cover the cost of rental, contain an address, and establish contact information for both the renter and landlord. It should also establish the length of the agreement and penalties if this is not met.
Also included in the lease agreement should be an agreement for how damages are dealt with, who foots the bill for damages, and the consequences for any violations of the lease agreement.
If you?d like, you can make a more elaborate lease that establishes special conditions such as the painting of a wall, installation of a garden, etc. You could include your policy on subleasing, pets, overnight visitors, and so on. This extra information may also be contained in a secondary document.
Report of Damages
It will be important that your renters create a record of existing damages that you approve of. This way, you?ll ensure that they?re receiving the correct security deposit upon move out. It protects both tenants and landlord from claims of damage on a property. Like a lease, this document is most useful when signed by all parties.
Though it will be contained in the lease, it is a good idea to make landlord contact information readily available for tenants. Many companies offer inexpensive printing services and allow for mass production of items such as magnets. This way, tenants have an easy (and hard to lose) copy of your information should they need it.
And luckily, all of these documents are available for free online?by performing a Google search for ?sample lease agreement? you?ll have a variety to chose from, as well as the opportunity to alter a document to better suit your needs.?(photo credit: nivlek_est via photopin cc)