Real estate is one of the most lucrative forms of investment because the property is always on demand. Also, the cost of assets in most places keeps appreciating as time goes by, which means that an investor can be assured of positive returns once they invest. The mistake that many people make is not performing their due diligence before getting involved with the investment. In case you are thinking about investing in property such as rentals, you need to understand the laws that govern the relationship which exists between the landlord and the tenant. Getting into the business without understanding these terms at times leads to losses and even lawsuits. Below are some of the tenant and landlord responsibilities that a severe real estate investor needs to know.
The duties of the landlord
Ensuring that the rental is in habitable condition
Before a tenant moves into an apartment, the landlord is needed by the law to make sure that the house is in a livable condition. A comfortable house is one which is structurally sound, has adequate heating, water electricity and cleanliness. Although the specific laws will differ from one state to the other, the bottom line is that a tenant has to live in a comfortable and safe house. The landlord is required by law to make any repairs that the property may need and to provide notices to tenants promptly unless the issue leading to the announcement is an emergency. Heating and plumbing issues, for instance, are supposed to be handled within 48 hours of learning about the issue. Before entering a property, even to make repairs, the law requires you to give adequate notice to the tenants. Only in emergencies like fire and flooding are you allowed to access the house without warning.
The consequences of not making the needed repairs on time
In case you do not make the needed repairs on time, the tenant is allowed by most laws to withhold the rent payment until the repairs have been done. Some states allow the tenant to put the money in an escrow account and only release it to the landlord after the needed repairs have been made. The tenant is also allowed to get someone to make the repairs on behalf of the owner if he does not respond on time. The money that will be paid to the contractor will come out of the rent the tenant is supposed to pay the landlord. The tenant is also allowed to contact the local authorities if the issue violates local building codes. In this case, you as the landlord may end up paying hefty fines or penalties.
The process of vetting tenants
Vetting tenants is one of the tenant and landlord responsibilities which benefits the landlord more than the tenant. The process of vetting a tenant can be carried out by an individual, but it is better to have experts such as rental agents complete the process on your behalf. The things that are looked into during this vetting process is among other things, a credit check on the tenant to make sure they are in a position to pay rent, criminal background check, current address check and a reference from the current landlord of the prospective tenant. The tests will help you avoid tricky situations such as the ‘professional tenants.’ These are the characters who pay a deposit, get into your house and then start claiming that they have lost their job. The worst thing about neglecting the vetting part of the tenant and landlord responsibilities is that you might take several months before you can legally evict such a client and this means losses on your side.
The responsibilities of the tenant
The first and most important tenant obligation in the tenant and landlord responsibilities is that the tenant is supposed to pay the rent on time. The payment of the rent depends on the agreement, for instance, if you have agreed that the rent will be paid quarterly, they should make the payments at the start of every quarter. In case there is a genuine reason for lateness, they should inform the landlord in time.
Even though repairs and maintenance of the property are the responsibility of the landlord, if the damages were caused by the reckless actions of the tenant, they should handle the repairs. In case a dispute arises over the maintenance and repairs on the premises, the best way to settle is consulting competent property managers in West Jordan for a legal solution.
The benefits of allowing professionals to manage your rentals for you.
Many advantages come from letting experts handle the repairs on your behalf. To start with, they will vet the tenants properly and make sure that they do not allow troublesome people into your premises. Then, they will make sure that all the repairs and maintenance needs of the rentals are attended to as soon as the problem occurs. The process will minimize the possibility of disputes arising from your rental premises. The property management company in West Jordan also know how to legally follow up on the tenants who are not making their rental payments on time. They have professionals who will keep reviewing your investment and advising you on the steps to take to ensure that your rentals are giving you high returns.
The most important thing to note is that it is easier and more profitable to allow a professional property management company in West Jordan to manage your rental property as opposed to attempting to handle the process by yourself. They will create a sound investment portfolio for you, give you advice when the need arises and make sure that your property is giving you the returns that it should. Contact professionals today and start the journey towards complete success in real estate investing.