One thing is common among successful landlords; they set clear expectations with new tenants right from the onset of a lease.
You see, when your expectations are clear, there will usually be minimal or no areas left for potential collision. Resultantly, this can help make your landlording experience a cinch.
But, how exactly do you set clear expectations with new tenants to reap maximum benefits? Worry no more; Nelson Property Management has you covered.
This guide will walk you through the process step by step. Keep reading to learn more!
Be Clear on Rent Matters
There is no denying it, rent remains the bread and butter of any rental investment. Your goal should be to ensure it keeps coming in consistently over the entire period of the lease.
However, for the consistency to last, you’ll need to be clear on certain things. Aside from letting the tenant know about the monthly rent payment, also let them know of other rent-related matters, including your rent collection process and any late payment policies.
For instance, how much is the late fee, the amount of grace period, and acceptable methods of rent payment. Be sure to confirm with state and local laws to know what you can and cannot do in this regard.
In the state of Michigan, for example, landlords are required to be reasonable with the amount of late fee they charge. But there is neither a mandatory grace period nor rent payment methods.
Be Clear on Repairs and Maintenance Responsibilities
First off, as a landlord, you must provide your tenant with a habitable rental property. In other words, the property must meet the minimum safety, health, and building codes, which are essential for proper property maintenance.
It must not have issues like mold or pest infestations, trip hazards, non-functional smoke detectors, or electrical issues, among other things.
The tenant, too, has certain responsibilities in this regard. This is where you’ll need to be clear on as a landlord for minimal areas of conflict. Under the MI Landlord & Tenant Relationship Act, for instance, tenants are obligated to:
- Keep their unit safe and habitable.
- Keep their unit clean and sanitary.
- Handle repairs they are responsible for.
- Report issues on time.
On your part as a landlord, make sure to be proactive with repairs and maintenance requests from tenants.
If you fail to respond on time or make the necessary fixes within the required time frame, the tenant can acquire certain rights. Including the right to sue you in court, break their lease without penalty, or repair and deduct from rent.
Be Clear on Damage vs. Normal Wear and Tear
The difference between what constitutes damage versus normal wear and tear is often a point of conflict in a landlord-tenant relationship.
Let every new tenant know that the only acceptable damage on the property is normal wear and tear. Examples of this kind of damage on a rental property include:
- Minor scuffs on the paint job.
- Faded curtains due to sunlight exposure.
- Missing grout on the bathtub.
- Small nail holes in the walls.
- A minor tear on blind or curtain.
- A squeaky door.
- Loose doorknob.
- A gradual decline in appliance performance due to age.
These kinds of damage are expected over time. They are a result of the normal use of a rental property. As a landlord, you’re responsible for fixing them during your routine maintenance rounds.
With that in mind, be clear on what kind of damage you don’t want on the property. Let the tenant know that it’d be a gross violation of the lease agreement to cause negligent or careless damage to the unit.
In severe cases of property damage, you could consider evicting the tenant from the property.
Pet Policy
Whether or not to allow pets into a rental property is a decision you’ll have to make. When making the decision, however, keep in mind that the majority of Americans are pet owners.
Most studies estimate that over 66% of American households own at least one pet. Understanding the benefits of renting to tenants with pets, such as reduced vacancy rates and increased tenant satisfaction, can help you make a more informed choice.
Now, that is a sizable market share you may not want to ignore by not making your property pet-friendly.
Either way, though, ensure the tenant understands your policy on pets. If you allow them, let the tenant know of any restrictions or requirements you may have. Will you be charging a pet deposit, fee, or rent? Will you restrict the pets in terms of their breed, number, or size, for example?
And if you won’t allow them into your property, let the tenant know that as well. Leaving it to guesswork can be a recipe for disaster.
Noise and Disturbance
Let new tenants know your policy on noise and disturbance as well. Specifically, let them know what constitutes excessive noise on the property.
For instance, large noisy parties at night, excessive music or television volume, incessant dog barks, and frequent and loud arguments. Make it clear that repeated violations could lead to warnings or even the eviction process if necessary.
What’s more, let the tenant know about the quiet hours. Specify clearly on the lease the exact times considered “quiet hours” in your lease agreement. This period typically runs between 10 PM and 7 AM. But, you can also adjust them accordingly to fit your property and tenant preferences.
Smoking Policy
Although the smoking population has gone down dramatically over the years, you still shouldn’t ignore the possibility of renting to a smoker.
The best way to implement a smoking policy is by clearly outlining it in the rental agreement. Begin by clearly defining what constitutes “smoking”, whether that is cigars, cigarettes, or vaping. Next, designate specific smoking areas.
Also, let the tenant know that violating the policy just like any other can have serious ramifications like an eviction.
Bottom Line
There you have it; how to set clear expectations with new tenants for a smooth landlord-tenant relationship. This can also result in minimum operational costs for you and maximum return on investment.
For expert help in this regard or any other aspect of landlording, look no further than Nelson Property Management. We are among the best property management companies in the Metro Detroit area. Let us help you succeed!
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