If you have decided to rent out a property then you will find it worthwhile to become familiar with all the legal requirements, regulations and responsibilities that govern the landlord-tenant relationships, and to make sure you are prepared to deal with any situation that may arise. This means keeping accurate records of all your agreements and dealings, so that you can provide evidence of what your contracts say and what money has been paid should any disagreements arise, and making sure that you draw up good, strong contracts and get reliable legal advice. Make sure that everything is done in writing. A conversation in person or by phone between you and the tenant will not be any help if you end up in court. Make sure that you communicate in writing, and that all your legal documents are drawn up correctly. Your written tenancy agreement should set out the responsibilities of both yourself and the tenant, as well as covering what rent is to be paid and what will happen if payments are missed and when the tenant moves out.
You will also need to make sure that both you and your tenants are aware of your responsibilities for the property. As the landlord, you will usually be responsible for making sure that your property is safe and in suitable condition for habitation. The exact requirements will vary according to location, so you should make sure that you know what is required in your area. Usually you will be responsible for the structure of the property. If there are any potentially hazardous materials, such as lead paint, that you are not required to remove before renting the property out you will still need to tell potential tenants about them, otherwise you could face legal action in the future. If there is maintenance work that needs to be done on a property that you own you should get it done as soon as possible. Keeping the property in good repair will attract more potential tenants and allow you to charge higher rents, and if you fail to meet your responsibilities in terms of repairs and maintenance, the tenant can legally withhold rent from you.
It will also be worthwhile to make sure that your property is secure. Your tenants should feel that they and their belongings are safe. Secure locks, working outside lights and other simple measures can make a property more attractive to tenants and less likely to attract criminals.
When you are looking for a new tenant you should be careful about who you choose to rent your property to. The time before a new tenant moves in can be a good opportunity to make sure the property is in good condition, do any work that you feel is necessary and reassess the rent you are charging. Perhaps the average price in the area has changed, or the work you have done on the property makes it more valuable, so you may be able to charge more.
There are plenty of places where you can look for new tenants. It is a good idea to choose where to place your adverts according to the type of tenant you are likely to attract, for example, if you are near a university you may be able to advertise through the college, or if you are on a good commuting route you may want to place your adverts in newspapers that are likely to be read by businesspeople. You can ensure that you are getting a reliable tenant by putting them through a thorough screening process before you sign an agreement with them. Check their credit history and background, and make sure that you get references, ideally including one from their current employer.
Make sure that you have adequate insurance coverage for your property, including liability insurance. You should be protected against damage to, or even loss of, the property, and against any potential legal difficulties.
If you do have a problem with your tenant, then it is a good idea to try and solve it without resorting to legal action. You may be able to talk things through and come to a mutually agreeable solution, or get a neutral party to mediate between you. If you cannot resolve the situation and you are owed money then you may be able to get your rent payments through the small claims court without incurring huge legal fees. Having kept thorough documentation of everything that has passed between you and your tenant will be invaluable should such a situation arise.
