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

what you’ll do if they need additional parking. In all these parking-/vehicle-related situations, you need to consider whether they’ll create issues with your neighborhood as well as what you’re comfortable with. You want to lessen any risks, reduce potential stressors, and ensure your protection.

17. Other Adults Living on the Property

Some tenants will allow friends or family members to “crash” at their place (your place) for an undetermined amount of time. If you don’t want extra people — people you don’t know, haven’t met, and haven’t screened— then you need to protect yourself in your lease. You could put yourself and your property at risk if you don’t include a clause about other adults living on the property with your tenant. For example, the lease could state that the tenant must request permission for any other adult to move in, and that that person must go through the screening process.

18. Property Maintenance Standards

Determine your standards for property maintenance and have that clearly detailed in the lease. One obvious piece is that the tenant can’t cause actual damage to your property or else they’ll face penalties/consequences, which should be written out. But what about general property maintenance and cleanliness? What about lawn-mowing and basic landscaping? If you allow pets, what about cleaning up after them? To what extent will you require these items, and what happens if the tenant doesn’t follow through? If you don’t stipulate the specifics in your lease, your tenant can essentially get away with not doing what you want them to do. If it’s not spelled out in the lease, it’s open to interpretation by a 104

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