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

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Some specific areas of property maintenance (besides property damage, cleanliness, and landscaping) to stipulate in your lease include: • Pools and sprinkler systems. If you have a pool on your property, think about who’s going to clean and maintain it and ensure its safety. You’ll need to protect yourself from the horrific possibility that a neighborhood kid could wander on to your property, go for a swim, and drown. You don’t want this to happen for several reasons, but one is your own liability. Suddenly you could have a huge lawsuit on your hands because you didn’t include this in your lease. Further, if you have a sprinkler system, you need to consider who will hold the responsibility for taking care of it, and then stipulate accordingly in your lease. • Light bulbs. This might seem insignificant, but tenants should hold responsibility for maintaining and updating lightbulbs, as necessary. But it needs to be in the lease. • Phone/Internet. Avoid potential disputes regarding phone and Internet expectations by clearly stating the terms in your lease. If you don’t have a landline hookup, then say so, and be sure the tenant agrees. If you won’t provide Internet access or guarantee high-speed Internet, then say so. • Drain stoppage. If a tenant plugs up the toilet, are they responsible for addressing and fixing the issue, or are you responsible? Include this in the lease. • AC filter. Who’s responsible for maintaining the air- conditioning filter and changing it regularly? Put it in the lease!

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