A recent article in the Denver Post offers the following 7 tips to minimize risk for homeowners electing to rent out their homes:
• Find the Right Tenant. Use credit and background checks to screen and select tenants.
• Prepare the House. Before renting, clean the house thoroughly and tackle any looming improvement projects prior to leasing.
• Document and Discuss. Take extensive pictures to document the condition of the property prior to tenant move-in.
• Finalize Carefully. Have tenants sign a document of the pictures showing the condition of the property at the time of move-in.
• Don’t Forget the Outdoors. As you negotiate the lease have a detailed discussion of the tenant’s obligation to maintain outdoor space such as landscaping and include obligations in the lease document.
• Look to the Future. If you have promised upgrades or repairs to the tenant, make sure they get done promptly. Also, supply the tenant with contact information for trusted contractors.
• Don’t be Absentee. Stay in touch regularly with your tenants and check on the property regularly.
If you would like to discuss leasing or other issues surrounding your real estate investment properties, please contact our Business Law Group partner, David A. Closson at [email protected].law.