Do it Yourself - Living Will
Starting your small business
Indemnity clauses in Publishing
Guide to Buying Real Estate
Divorce Effects on Small Businesses
Becoming a Successful Landlord
a tenant is a major business transaction and it is important that your screening
process be handled professionally. In essence, you are extending thousands of
dollars worth of credit to the tenant. You are also entrusting them with your
property that is worth much more. A
Rental Application completed and signed by
the tenant is an essential step in securing a reliable tenant as well as
safeguarding your rights as a landlord. With a signed rental application, the
landlord can obtain the tenant’s credit history and credit report.
screening process can eliminate negative consequences for the landlord as well
as for other tenants in the residence. A recent study shows that the average
risk from a “bad tenant” can amount to $1,500 which makes the screening process
a good business investment. A screening process generally includes rental
history, job history, legal history, reference check, credit report and banking
information. Whether it is a residential or a
Commercial Lease Agreement, by conducting a proper screening process, the landlord can avoid
many problems associated with high turnover, property damage, slow payments and
collections, moves without notice, disturbances and evictions. It is also
prudent for the landlord to use a
Inspection Checklist to document the property condition before renting it.
rental application process is completed, the second major step is the
Agreement. A rental agreement is extremely important particularly when it comes
to a valuable asset such as real estate. In essence, Your tenant will take
temporary possession of your property. The tenant is obligated by the law to
abide by the rental agreement. If the tenant refuses to leave the property, the
only way to vacate them is through the legal venue by issuing them an
Notice. This is why the rental
agreement needs to be in writing, and the time to execute a written rental
agreement is before the tenant takes possession of the property.
said that it was easy to find the perfect tenant. As a landlord, you will
probably encounter a few bumps and surprises along the way. What you probably
need is a set of tools to identify the problems or red flags in the tenants
credit profile. There are two straight forward points to be made here:
- DO NOT
rent to a tenant who has an open bankruptcy. If they include the rent they owe
you in their bankruptcy, it is most likely that you will not be able to
collect this money.
- DO NOT
rent to a tenant who is at high risk of declaring bankruptcy. This can be
identified if the tenant has a substantial amount of money in past due
accounts and collections, and if creditors have issued a judgment against the
tenant. Moreover, a high risk tenant can be spotted by other means such as
high debt to income ratio, seasonal or temporary jobs among other things.
- DO NOT
rely on verbal communication. Always keep everything in writing.
Use Email for example for correspondence to keep record. Use legal
eviction notice forms
instead verbal of notices to evict your tenants. This protects you by
law in case of dispute. When you keep all communication and agreements
in writing you essentially protect your legal rights and your property.
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