Gibbons Law Firm: Protect Yourself From Troublesome Tenants: 5 Tips

Have you ever considered renting out your second home or vacation property? Leasing property to tenants can be a great way to supplement your income or, at the very least, cover the cost of the mortgage, utilities, and insurance on second properties. It is important to tread cautiously and cover all of your bases, however; if you aren't careful, you could subject yourself to a variety of legal hassles.

Gibbons Law Firm has a longstanding landlord-tenant practice at the Lake of the Ozarks, with significant experience representing landlords who are dealing with challenging tenants. Today, we are sharing a few simple suggestions to help landlords protect themselves from potential legal hassles. If you are currently leasing property or considering doing so, keep these points in mind.

1. Conduct A Thorough Background Screening.
The best way to avoid challenges with your tenants is screen prospective tenants to filter out applicants who may be more likely to cause trouble. As a landlord, it is completely within your rights to conduct a background check on all prospective tenants. Passing premature judgments based on superficial factors is rarely wise, but screening applicants based on their criminal and financial history may save you a great deal of grief in the long run.

2. Have Both Parties Sign A Comprehensive Lease.
A proper lease agreement is the foundation of a successful landlord-tenant relationship. Your lease agreement should clearly outline all expectations tenants are expected to meet. In addition to the basic components, (how much rent is owed, when payment is due, the duration of the lease, etc), your lease should also identify specifics such as what uses of the property are/are not permitted, who will be responsible for utilities, who will be responsible for repairing damages and malfunctioning appliances, etc. Both parties should sign this lease before the tenant receives the keys. In order to make sure your contract is comprehensive (and legally sound), you may want to consider having an attorney review your agreement before it is signed.

3. Keep A Written Record Of All Correspondence.
As you work with your tenant, it is wise to keep a written record of all communication. Since it allows for easy documentation, email is an optimum method of correspondence. Text-based communication and phone calls are sometimes preferred, however, so it is important to take steps to document correspondence that occurs via these mediums. Follow-up with an email documenting your conversation, or capture screen grabs of text messages. If your tenant fails to uphold an agreement that was formed after the lease was signed, you'll want to have documentation of this agreement.

4. Document All Payment Activity.
As a landlord, it is essential that you keep thorough documentation of your tenants' payment activity. Hopefully they will pay their rent in full and on time every month, but juggling bills can sometimes be challenging. If your tenants begin missing payments or find themselves unable to pay in full, you may negotiate a new payment schedule or consider eviction. If you decide to pursue legal action for your tenants' missed payments, you will need to have official documentation of all payment activity.

5. Consider Eviction As A Last Resort.
When your tenant violates your lease agreement or becomes problematic in another manner, your first approach should often be to simply talk with them. Communicate your expectations, and clarify the consequences they may face if they fail to meet those expectations. Be sure to document all communication that takes place. We typically recommend that eviction be reserved for a last resort, as it can be time-consuming and costly. If repeated attempts to resolve the issue are unsuccessful, however, eviction may become necessary. We recommend securing legal counsel to assist with the process to minimize your risk.

Gibbons Law Firm: Your Resource For Dealing With Challenging Tenants
If you are struggling with challenging tenants, we hope you'll consider scheduling a consultation with Gibbons Law Firm. As landlords ourselves, we have first-hand experience with some of the challenges that may arise and the strategies that may be used to effectively overcome them. Your initial consultation with our Lake of the Ozarks law firm is always free. Call 573-348-2211 to schedule yours today.