Tenants Clauses in The Agreement
by Even just a verbal tenant agreement is fine if everything stays fine. But what about if there is a problem?
When you are a landlord, there are correct ways to do things and not so correct ways to do things. Having your first sets of tenants can be a lesson in things not to do.
When you write that lease, you always want a security deposit, first month’s rent and last month’s rent. This is because the renters will have something to lose in case of a breach of contract. The other item you should define is what penalties will be incurred in they leave or break the lease early. This is where it will be defined on what conditions you will be able to keep the security deposit if they leave early.
If a renter has nothing to lose by leaving in the middle of the night, they will leave. If the thousand dollar or so security deposit and last month’s rent is at stake, they will probably be more inclined to talk to you and try to negotiate something. Then your interrupted stream of income is in much better shape than it would be if they just left.
As we all know, if your tenants lose one of their incomes and cannot afford the housing, you cannot squeeze blood out of a turnip. But at least if they come to you first, you may be able to negotiate something to help them out.
Even though it is not always true, you may be saved from damage to your property if they are thinking they may get some money back. But if the tenant is upset and does not have a stake in keeping the house clean, they may just go on an anger rampage, leaving you with massive repair bills. So the next time you are considering renting, pay close attention to your rental agreement as it will determine what will happen in case of a problem later on.
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