In part two of our "tips to becoming a better landlord in Central Florida" series we talked about the importance of background and credit checks when it comes to finding the perfect tenant for your investment property. No one likes a bad surprise and taking these preventative measures will ensure that doesn't happen to you.
So....you’ve now found who you think will be THE tenant for you. What’s next?
Well, now is the time to set pen to paper and make sure that everyone’s expectations are clearly communicated in the lease agreement. While you can always pick up a generic lease agreement from the local office supply store, you may not want to pinch your pennies too much in this arena. Those generic leases are made for general distribution and may not include state specific requirements. Your local REALTOR® or property manager should be able to coordinate the lease signing for you (along with the lease) or refer you to a local attorney who can help with preparing the lease. Make sure you review the lease with the preparer to ensure that the lease clearly shows the landlord and tenant’s responsibilities and rights, the rent collection process, delinquency process and any other relevant terms that might need to be incorporated into the body of the lease. Give the tenant a chance to review the lease before signing and to seek legal counsel, should they feel they need it, to ensure that they understand what they are signing.
You’ve now found your tenant, qualified them, engaged them in renting your property and are done. Right? Wrong.
Remember where I said the key to finding the right tenant depends on the landlord? Well, the key to not only finding but keeping the right tenant is in being able to continue to have open communication with the tenant even after lease signing. That means a 3 a.m. phone call stating that their air conditioner is no longer working during the hottest summer night imaginable means you’ll be on the phone first thing in the morning to find someone to go out and service the air conditioner (or even better yet, drop off a couple of oscillating fans for them to use in the interim).
The Golden Rule is important here folks. My best tenants have always been the ones who have taken care of my properties as if the property were their own. Why? Because I, as the landlord, first cared enough to listen and address their issues. Sure there will be one or two renters somewhere down the line who are lemons and complain about everything or cause problems, but we definitely have a hand in which lemons are chosen.
My hope is that, with the tips I've equipped you with from this series, you won’t experience many lemons in your future as an Investor...but if life hands you a lemon, be sure you saved some of those vanilla sugar cookies from earlier to go with that lemonade.
About the author, Christy Lim: Christy graduated with a Juris Doctor from Florida Coastal School of Law. Her areas of focus include residential and commercial real estate transactions, immigration and foreign investments and visas, and contract negotiations and alternative dispute resolution. Having over six years of real estate experience in Florida and having managed commercial properties for over fifteen years, throughout California, Florida and Texas, Christy brings forth a broad and diverse understanding of the complexities associated with the legal and real estate fields. Like what you read? Read another post by Christy, FAQs on Property Investment in Central Florida.