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Tuesday, 4 April 2017

SIGNS AND TIPS THAT HELPS TO AVOID COSTS SUING A DEFAULTING TENANT


An angry client of mine stormed into one of his rented properties at around  00:01 mid night and ordered a defaulting tenant to vacate the premises with immediate effect ! Shocked by this militant move the tenant packed all his belongings and left the house. I still wonder where in Harare did the tenant go to find a vacant house in the dead of night. This tip worked instantly for this landlord but its not however, one of those Iam recommending to you in this article.

Definitely, if you have rented properties you need to have a sustainable way of dealing or avoiding defaulting tenants because they will cost you money and reduce your rental profit! Most landlords at the time of defaults are usually not financially capable to sue a defaulting tenant. Probably, its because the money they should use is that the tenant would have not paid.  So if there are ways to avoid this expense and save money then such ways are most welcome. To this end here are some signs and tips on how to avoid  expenses suing a defaulting tenant.





LEARN ABOUT PROPERTY FROM EXPERTS




SELLING YOUR HOUSE? TIPS ON HOW TO SAFEGUARD SALE PROCEEDS !

Usually property fraudsters are people with extensive involvement in the selling of houses or real estate for criminal purposes. If you are a layperson selling his or her property chances are high that you are already beaten by these people's schemes from the word go. This article endeavors to help you by giving some tips based on age old practice that lawyers have effectively implemented, safeguarding sale proceeds even in the face of these hungry predators. More ...



PERIMETER WALLING AND OTHER VALUE ADDITION METHODS FOR PROPERTY INVESTORS


Value appreciation of immovable property is one of the biggest motivators for investing in real estate. It means harvesting good profits through capital gains or higher rental income to property owners and more commission to estate agents.   A depreciation in value means the opposite – a   lose of equity, profit or commission. Value appreciation being this important therefore, techniques that allow investors to positively influence the perception of value in the eyes of the market are welcome. Here are three worthy of consideration and these are perimeter walling, landscaping and a paint finish called eggshell.More...


Have a shorter lease.

I prefer a shorter lease because it helps you to make use of the security deposit in time before the costs of  the tenant's liabilities goes beyond the amount of deposit held in trust. Usually the deposit is only used upon termination of lease so if the tenant causes some liability to the property like municipality debts and fail to correct this problem you can not then say Iam now going to use the deposit to pay your debts until the lease contract expires. So I therefore, prefer a shorter lease that expires sooner so that you  can make use of security deposit in correcting the liabilities before their cost goes beyond the amount of deposit.

Screen prospective tenants first.

Initially screening prospective tenants is the first line of defense in protecting your rental income. If you do this well you would have avoided possible problems that would mushroom down the road. Screening acts as a road sign that show you possible problems ahead so that you make decisions now in order to be safe. Most landlords do not screen prospective tenants yet there are simple and effective ways of doing so. For example asking the tenants to do the following ;

1. Provide information about monthly salary.

2. Payment of security deposit.


1. Provide information about monthly salary.

Providing information about monthly salary or income is one of the best ways of determining whether or not a tenant is capable of paying. If the property's rent is $400.00 and the tenant earns $500.00 then he or she is likely to default rent payment because his salary in terms of expenditure is committed to the brim. This tenant is therefore, disqualified. You can take a cue from banks about the screening they use to avoid possible bed debtors. Say you want a loan and your monthly mortgage payments are going to be more than 60% of your monthly income then you are more likely to default on those payments consequentially the bank will not give you the loan.

2. Payment of security deposit.

A security deposit is useful in paying for a tenant's liabilities if any upon termination of contract. At least it should be equivalent to the amount of monthly rent. Some people vacate the premises they rent and leave behind debts for the landlord to bear and these are what cause costly lawsuits. So payment of deposit is security against this reality and its not negotiable. What can be negotiated is how it is paid possibly to match a tenant's cash flow. This again is a first line of defense and  a road sign that points to things ahead.









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