Read this article to know exactly which rental documents are important enough for every landlord should keep on file…
Being a landlord seems like an ideal job to many who look at it from the outside. But just ask a landlord about it and they’ll tell you what a trial landlordship really is… From facing real estate lawsuits to listening to tenants’ complaints, being a landlord is not everybody’s calling.
If you’re a landlord you know what we’re talking about here, right?
One thing that can give landlords a pretty hard time is organising and keeping the right kind of documents on file.
Because many don’t know which documents will matter in case of any future lawsuits…
So, if you’ve recently stepped into being a landlord this article is for YOU!
Read below the EIGHT documents that every landlord must keep in case things ever took a wrong turn…
1. Lease Agreement and Addendums
This is obviously important and you’re advised to keep hold of the lease agreements and related addendums ever after ONE year since the end of the contract.
A lease agreement should have all the terms and conditions that you agreed upon with your tenant initially.
Like, the mutual duties and rights, eviction process, rent due date, etc.
So, if there’s any litigation in the future this document can prove a lifeline for you!
2. Rental Application
A rental application will contain everything from a renter’s family info, Social Security number, work details to their relevant past records.
So, it’s absolutely necessary to store the application in a safe place…
Because it can be a super useful resource in the event of an emergency with the tenant.
Plus, if the tenant flees with your rent unpaid, you can always use their rental application form to track them down…
3. Rental Inspection Report
It’s a report on the condition of the property before the tenancy began and you need to always have it in store to avoid later blame-game and quarrels…
Like your tenant may damage the property accidentally and then not own it up or say the defect was already there.
In such a case you can always refer back to the inspection report to see what the truth is.
4. Financial Records
Now, that’s like a no-brainer!
What are your chances of winning a case against your tenants if they defaulted and you don’t even have the financial records to show and prove your point in court?
Sometimes, landlords with multiple properties may forget to collect payments and a month or two may slip by…
Now, if you lack the payment history it’ll be extremely difficult to get your money back in case the tenant claimed they did actually pay you.
Also, experts recommend using online software to keep track of payments.
5. Move In/Move Out Checklist
These two are the exact same documents and the only difference is one is intended for the tenants moving in and the other for those moving out.
A move-in checklist will carry all the necessary information like how many repairs are needed, etc.
While a move-out checklist will show things like how much wear and tear happened during the stay of the tenant and the tenant will be required to pay up.
All in all, a checklist will give you a good picture of what the property was like before the tenant moved in…
… and what it looks like now when they are leaving.
But, a checklist will only be effective in court if it has signatures from both parties!
6. Repair and Maintenance Information
If you provide your tenants will all the furniture and electrical appliances already in place then you MUST keep the warranty and repair documentation REALLY safe.
Because, the furniture could get damaged, and other facilities can be caught in technical faults…
So, to get them fixed you will want to cash in on the warranty claims.
7. Communications with Tenants
All kinds of written communication with the tenants should be filed for obvious reasons.
The communication could include letters, emails, notes, etc.
BUT, most of the communication nowadays takes place over the phone or online chat so it’s best to keep a record of those too.
8. Move-Out Letter
When your tenant has decided to move out make sure you send him over a move-out letter at least three weeks before he leaves.
In this letter you’ll ask him certain things that you’d expect him to do before moving out…
Like say,
– Don’t leave your things behind
– Hand me the keys before you move
– Let me know where to transfer your remaining security deposit
And other stuff like that, you see.
So, Lastly…
Keeping necessary documents in an organised, orderly and chronological way always saves you tonnes of worry and confusion; which being a busy landlord you can’t really afford to suffer. Plus, it’s always good to be a little organised anyway, isn’t it?
