David G. Brown - HOW TO REDUCE YOUR RISK IN REAL ESTATE INVESTING

you’ve stipulated in your lease that you will not guarantee it. • Fixing cars in the driveway. Determine whether you will allow tenants to fix/work on vehicles (cars, trucks, RVs, etc.) on the driveway, in the garage, front yard, backyard, or not at all, whether they’re permitted to allow acquaintances to do the same, or if they can charge strangers a fee for parking. Yes, you need to be that specific. You’d be surprised at what some tenants try to do — and ultimately get away with, if it’s not properly outlined in the lease. • Subletting. Figure out whether you’ll allow subletting, such as Airbnb situations, on a short- and/or long-term basis. I don’t recommend allowing sublets, since you don’t know the new temporary “tenant,” and you could put yourself, your home, and your property in jeopardy. Further, Airbnb might not be legal in your area. Please do your due diligence to limit risk and avoid unnecessary trouble. You’ll need general and specific rules for your property. If you establish rules in writing upfront, and then explain them to the tenant verbally, they will have less of a leg to stand on if they break a rule or challenge you in court over a dispute. 12. Rules for the Property Here are some issues to consider, but I urge you to brainstorm other possibilities as well: • cleanliness/maintenance of the home • number of vehicles and where they can be kept • smoking marijuana (is it legal in your state? If so, is that something you want to deal with?)

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