No matter how brave you are, lawsuits and court trials always seem daunting. Remember the face of actors in the movies when they enter the court with shackled hands? Don’t you think that you should never be in his place? Police, courts, trials are all dangerous. But you cannot stop them when they arrive to take you in the jeep. It’s true that nobody wants to get gripped in this kind of action. But things happen without invitation. Same is with the lawsuits. You did one stupid mistake and you are standing inside those three sided bars in the court. But you can always avoid them by paying a little attention in procedures while leasing.So let’s have a look at some tips that help you avoid litigations:
- Know your tenants: Before finalizing the tenant, check his/her previous leases and experiences. You can also call the previous landlord of your tenants to verify their stay and behavior. Know if they have been tied in any lawsuits before or involved in any criminal offence. Only after proper screening, lease them. Often it happens that tenants turn out to be mischievous and landlord gets caught instead of them. So be sure that you are leasing your property to the correct person. In case of commercial properties, sometimes the companies are actually fake and abscond without paying the rent. Ask some guarantee from them and it’s better to give lease in writing.
- Always put in writing: Note that deals without paper is no deal in the eyes of law. Handshakes may seem elegant and friendly but when it comes to proving the truth then it’s the document that gives you the strength. So tie this knot and before every lease you give, prepare proper documents in writing which should mention rent amount, use and repair obligations. Also a commercial lease of more than three years needs to be in writing.
- Renewal and review of lease: Sometimes the tenants want to renew the lease period but the landlord doesn’t and nothing about renewal is mentioned in the document. This leads to legal actions. So make sure that you review the lease document property and include points that will avoid lawsuits. Also the renewal of lease point should be thoroughly studied and decided as per your convenience and principles.
- Get insurance and have a strict deposit policy: Even if you are sued by your tenants, the insurance cover litigation costs. However insurance of property also avails you benefit over damage to property. Getting insurance not only saves your property but also you. Also you must have a stringent deposit policy according to which you should take an amount in deposit that you have to keep with you and if the tenant will create any nuisance then the money will be cut from it.
- Stay good: Always be nice to your tenants and never get personal in business matters. Remember that they are not your enemies. If you stay nice and disciplined with them then they will reflect the same nature. If you show your anger then the law is there for help. So stay good landlords.