Avoiding an Eviction
Managing an investment property can be rewarding in a variety of
ways. Most investment property owners derive great satisfaction
from making improvements to their investment property and
offering suitable living conditions at an affordable price. It
is also rewarding to make a profit on a business venture by
renting out a single family dwelling and earning equity in the
investment property as someone else foots the mortgage payment.
However, there is one particular drawback to renting out an
investment property that you should be aware of. From time to
time you may run in to a problem tenant that falls behind on the
payments or just doesn't pay the rent at all, forcing you to
perform an eviction. There are a couple of things you can do to
avoid an eviction.
To begin with, before you rent out the property to a potential
tenant make sure you do your due diligence on the tenant. You
should ask the tenant to fill out an application that includes
references of past landlords. This will allow you to do a little
bit of investigative work which will go a long way in avoiding
an eviction. Call up the past landlords and find out what kind
of tenant your applicant was. Did they pay their rent on time?
If they were late with their payment, why? Did they cause any
problems? Are they the kind of tenant they would welcome back?
Past history often foreshadows future behavior. Thus if the
tenant was an admirable renter before then chances are they
won't cause you any problems. But if they have a history of late
payments, excessive complaints, or problematic behavior then it
is best you look for another tenant. Taking on a tenant that has
caused problems for other landlords in the past will only lead
you down the road to eviction. And remember you are doing this
due diligence in order to avoid the headache of eviction so make sure you are thorough and don't
skip any corners.
If you have done your due diligence then chances are you won't
run into any problems with your new tenant. However, once you do
have a tenant there are a couple of things you can do to ensure
there isn't an eviction in the foreseeable future. First set
clear guidelines that are clearly outlined in the lease agreement . Make sure the tenant knows
when the rent is due, how long the grace period is, and what the
penalty is for paying late. Don't let the tenant get into the
habit of paying late. If you don't enforce your contract now it
will be that much harder to enforce it later. The lease
agreement is a binding contract and should be treated as such.
You should also treat your tenant with respect and respond to
their repair requests in a timely manner. If you maintain a
professional relationship with your tenant then many small
problems that could potentially lead to larger problems can be
squashed immediately. If you do your best to manage the investment property professionally and
abide by the terms of the lease agreement then avoiding the
unpleasant eviction process should be a piece of cake.
Adam Smith is an internet marketer specializing in
affiliate program management
for 10Xmarketing.com.
Eviction Investment property Lease agreement