Real Estate Investment:Steps To Protect Your Property From Misuse By Tenants

Posted under Real Estate Investment by admin on Sunday 25 October 2009

Article Summary:

It is possible to make a lot of money in real estate but let is be honest - it comes with it’s challenges, some of which are pretty huge. So let iss take a look at whether YOU can be a successful real estate investor.The most irritating factor of being a landlord is dealing with tenants who misuse your property and cause damage. Such tenants often cause complete destruction and totally trash your property inside and out. There are a lot of real life experiences regarding damage causing tenants


Article Content:

The most irritating factor of being a landlord is dealing with tenants who misuse your property and cause damage. Such tenants often cause complete destruction and totally trash your property inside and out. There are a lot of real life experiences regarding damage causing tenants making rounds in the market.

If you are one of those people who believe that getting a decent tenant is a function of good luck, you are absolutely incorrect in your assessment. You should rather work towards making your luck favor you in tenant-related matters. This actually means that by following some measures provided below, you could reduce your concerns related to finding a good tenant considerably.

As a first step, follow the process of Tenant Screening. This is a thumb rule persisted with by all smart land lords. Going by the number of horror stories out there regarding damages caused by tenants, we can safely conclude that not many land lords carry out a thorough process of tenant screening before deciding upon a prospective tenant. If one wishes to get a good tenant, it will not happen by chance. One has to be completely professional in the approach towards finding a good tenant and thoroughly go through the tenant screening process. Finding out about past experiences of some of the previous landlords, of the tenant in question, is an important aspect of the screening process. This task ought to be done meticulously.

As a second step, you ought to visit the property being vacated by the prospective tenant; or at the very least, at least drive along the property being vacated to ascertain the condition of the property. It is highly probable that your property will be treated in the same way as the one being vacated.

Thirdly, take photographs to keep a record of the condition of your property before and after the advertisement, in the presence of the tenant after the lease has been signed. Such pictorial evidences can go a long way in ensuring that the tenant uses the property as they would use their own house because in case of a law suit, the evidence presented will hold true in court and swing the decision in your favor.

As a fourth step, get a Property Condition Report made which documents the condition of your property before handing over the property to the tenant. Go through the report with the tenant and have him sign the inventory list and the conditions set forth. This will ensure that you have another legally binding document in hand apart from the lease agreement.

Fifthly, before handing over possession, take a substantial sum as a security deposit, including the first month’s rent. With so much at stake, the tenant will ensure he / she looks after your property well.

If you follow all the steps described above, there is no reason why you will not get a decent tenant who takes proper care of the property.

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