We received a question from one of our clients considering renting their property.
They just found a nice single family home in the same neighborhood for the same price they paid originally for their smaller townhouse.
A good move for them. . they make too much money to do a short sale and they want to OFFSET their losses by buying another property at a discount price now.
They get a bigger home, but now the prospects of being a landlord has raised some questions
They wanted to know the best and worse case scenario for the questions below. . .so here it goes. .
#1 Tenant stop making payments:
Best case scenario: Temporary problem, they will pay a small fee for being late and you will get your payment promptly
Worst Case scenario: Lost a job and the tenant can't afford the house anymore. Their problem becomes your problem. Your protection is the lease agreement signed by both parties.
Using the laws in the state to force termination of the lease and ask the courts to award you damages incurred.
#2 Tenant does not take care of the house:
Best case scenario: When they move, you will make an evaluation of the condition of the property. .any damages, they are responsible for and you can withhold deposit money to compensated you for it.
Worst Case scenario: The deposit money is not enough to cover for the damages. . .you can sue them and obtain a judgment for the difference. Courts can enforce payments via garnishments of wages.
#3 Tenant damages the house
Best case scenario: Their fault. .they pay for it.
Worst Case scenario: You have to sue them for it.
#4 Receive complaints in regards ( parking disputes, noise level. .etc)
Best case scenario: The HOA rules and regulations have to be enforced and a copy of these rules have to be given to them when they sign the lease. .they have to agree to abide by its bylaws
Worst Case scenario: When they completely ignore these bylaws, that is grounds for eviction . .good record keeping is always good advice here.
There is no way to predict what would happen in any case. .
All you can do is be prepared for the worse by having all your records in order.
A good Real Estate agent guiding you trough this maze is very valuable. . specially when they have experience.
Broker Herboso & Associates llc
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