Are You A Landlord? Make Sure You Have These Documents
Your responsibility as a landlord does not end with collecting rent on time, taking care of the property and addressing the needs of the tenant. Being a landlord also requires you to be thorough with your paperwork, allowing you to fulfill other responsibilities seamlessly.
MakaaniQ lists seven documents that you must file to have an organised and secure renting business:
This would come handy every time a tenant moves in and moves out. Maintain two checklists -- move-in and move-out -- to ensure that you deliver the property and take it back with all the things in place and no damages caused. A checklist, when the tenant is moving in, would ensure that you have provided them with everything they need and also, to keep a check that all the utilities are in order and functioning. A similar list should be created for when the tenant moves out. This will ease the process of inspecting the property in both the scenarios.
This is a must-have document in your file as it will be your only point of reference in case you plan to discuss something with your tenant regarding their stay. The tenant's rights and responsibilities and even the landlord's rights and responsibilities are well-defined in this document. What if your tenant violates the lease agreement? In case you don't have a hard copy of the agreement, you won't be able to question their moves. Moreover, the agreement states the rent, the deadlines for submitting the rent and also, the penalties. Without a hard copy, you would not be able to redeem any of these.
Add a new clause to the rent agreement a few months after your tenant signed the lease, addenda. Keep this document in your file, too. It holds an equal importance as does the rental agreement.
About the tenant
Maintain a document that holds all the information about the tenant. His workplace, hometown, contact details, emergency contacts, among others. This information can come handy in case of an emergency. For instance, if your tenant vacates the property without paying the rent, the contact details available can ease your process of finding him. Or, in case your tenant has fallen sick and needs your help, again the document can let you inform his kin.
Your property requires maintenance from time to time. To ensure you are performing the required tasks in time, maintain a list. This list must contain all the maintenance works, which were done and when are due. Easy access to a single file will ensure that these tasks are taken up on time with no delay.
Home loan papers
Are you still paying a home loan for the rental property? Keep your loan papers handy, too. Also, some landlords take home improvement loans to keep the property up to date. File these paper for future references and also, for future loans that you might take.
Make sure you are filing all the utility bills you are paying for your rental property. This will allow you to track the use. Moreover, in case your tenant is paying the utility bills, hand him a list of these utilities for a smooth supply.