If you have enough extra money in the bank to purchase a rental property, it’s going to be wise to push through with it because this will give you a chance to earn a lot of passive income. As many financial advisors would say, passive income is one thing that you should aim for if you really want to be unburdened financially.
While renting properties out is generally a profitable venture, there are some things that you need to understand about being a landlord so that you can avoid uncomfortable situations once you start taking in renters. In this article, we list some of them.
You have the responsibility to provide a habitable or workable space
Basically, the act of renting is a social exchange that is honored by law. You, as the landlord, have the responsibility to provide a reasonably habitable or commercially viable space for your renters. This means that you need to give them reasonable access to utilities and all of the basics. In return, the tenant or renter is obliged to pay the fees at the agreed time.
Your failure to provide what’s required of you can be used as a reason by your renter to file a legal dispute with a landlord. You really want to avoid legal battles like this because (1) the attorney fees can cost you lot, and there is a very big chance that (2) the courts will make you pay a considerable amount in damages.
You cannot evict a renter or tenant without proper eviction proceedings
As mentioned in the previous point, the agreement between you and the renter is honored and protected by law. This means that the rights of both parties are protected, and that their responsibilities toward each other are to be enforced only by authorized agencies.
With that, as a landlord you cannot play police and harass the other party, and this holds true even when your rights have been trampled upon by their inability to keep up with their responsibilities. Harassing them and evicting them without the proper process makes you a violator in the eyes of law. Simply put, the foolishness or misbehavior of your renter does not give you the authority to cross your boundaries as well. If you do cross the line, then both of you become punishable by law for different offenses against each other.
Hence, if your tenants or renters are giving you the runaround, do not ever take matters into your own hands. Go to the courts and go through the right eviction process. This can be costly and draining, but realize that this can be rewarding in the end. Not to mention it keeps you out of legal trouble.
You are not to disrupt your renter’s quiet enjoyment of the property
It is your responsibility to make your property as conducive as possible to living or doing good business. This means that you are to at least keep the property quiet.
But what if other tenants are the ones making the noise? You can still be held liable especially if you fail to take action. As a landlord, you have the power to issue notices or stop any disruptive activities of anyone within your property.
Knowing these things should not intimidate you whatsoever. On the contrary, they should help you prepare better for your venture. As always, being a few steps ahead is never going to hurt.