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

• Lock-out charge. If you don’t include this component in your lease, then you’ll be getting keys for tenants whenever they accidentally lock themselves out as well as allowing yourself to be disrupted at any hour to let the tenant back inside. Most landlords charge a lock-out fee of between $50 to $100. You absolutely need to have clauses in place that protect you in the event of an HOA complaint. Imagine you don’t have in place a rock-solid lease that properly addresses this, and your tenant, whom you’ve vetted, isn’t who you thought and starts breaking rules, damaging your property, and disrupting your neighbors. The HOA comes down on you, demanding that you fix the issue because it’s your property, and nothing in your lease protects you against HOA complaints. 19. Homeowners’ Association (HOA) Complaints This means it’s your problem, not the tenant’s, even though the tenant is causing the problem. Legally, your hands are tied because you can’t force the tenant, and maybe you can’t even address or fix the issue yourself. You could be in over your head with thousands of dollars in fines, all because your lease didn’t protect you.

20. Code Enforcement Complaints

Just as with HOA complaints, the same applies to code enforcement complaints that come from the city.

21. Pest Control

You’ll also need a clause for pest control. Why? If you don’t, you could end up in a situation in which the tenant can call you at any time and demand a pest control service. You might end up having

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