Many people have the idea that becoming a landlord can be a great way to make extra money. However, it is important to understand the basics of real estate law before becoming a landlord so you don’t find yourself in trouble with your tenants or the law. In this article, we will discuss some of the most important things you need to know when thinking about renting out your property including lease agreements, security deposits, and evictions.
What is a lease agreement
The first thing that needs to be done is draw up an agreement between you and your tenant which sets out all the terms and conditions for their stay on your property such as how much they are paying per month, what utilities they are responsible for, and what rules each of you will follow.
You should include the lease term, rent amount, and frequency as well as a tenant’s responsibilities. You must require your tenants to sign the lease before they take possession of the unit, as it helps protect your interests if the tenant decides not to pay or damages your property.
What is a security deposit
A security deposit is a sum of money paid by the tenant to ensure that they will fulfill all their obligations in the lease. This sum of money is held until the end of the tenancy when it will be returned to the tenant as long as they have fulfilled their obligations. Many landlords require a security deposit equal to one month’s rent, but others might require more (or less) depending on the nature of the tenant’s obligations.
What is an eviction
If tenants fail to meet their obligations set out in the lease agreement, they can be evicted. For example, if you have tenants who do not or cannot pay their rent, they can be evicted. Before evicting a tenant, you will need to provide them with notice and an opportunity to correct the problem.
You may have to take tenants to court if they refuse to leave after being evicted. This process can be lengthy and difficult, so it is important to have all the facts before starting this course of action.
What are the different types of lease agreements
There are several types of lease agreements that can be used to outline the terms and conditions of renting real property. The most common leases include periodic, fixed-term, real estate, and tenant-for-years.
Periodic lease agreement
This type of lease is used when you want your tenant to pay rent every month and does not specify when they must leave the property. This type of agreement is often used for month-to-month rentals.
Fixed-term lease agreement
A fixed-term rental agreement specifies how long you want your tenant to live at your real estate property, usually 12 months. If the person you are renting to fails to leave after the fixed term has ended then they are responsible for continuing rent payments, or they can be evicted.
Real estate lease agreement
This is used when you want to rent real estate and the tenant must live there for a certain amount of time. For example, if you are looking to rent out your house then this is the type of lease that you would use.
Tenant-for-years lease agreement
This type of real estate rental agreement is used when you want your tenant to live at your real estate property for a certain amount of time, usually seven years or more. If the person you are renting to fails to leave after the fixed term has ended then they are responsible for continuing rent payments, or they can be evicted.
What are common disputes and problems landlords encounter:
One of the most common real estate disputes and problems that landlords encounter is not having a clear lease agreement. It is important to draw up the terms and conditions as clearly as possible so that both you and your tenant understand what they are responsible for doing during their tenancy.
Another real estate issue that often arises is dealing with unresponsive tenants who do not fulfill their obligations under the real estate agreement that you have made. If your tenant does not pay rent or damages the property, you are responsible for taking action to resolve the problem.
In this case, it’s best to consult with a real estate lawyer to figure out the best course of action to take. This way, you will be able to avoid legal issues and begin taking the correct steps to resolve the problem.
To become a successful landlord, it is important to understand all aspects of real estate law before taking on any tenants. Although there are many benefits to becoming a landlord, you must also be prepared for the potential legal problems that may arise with your tenant or property.
