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

the house sprayed with toxic chemicals over and over again while you have to foot the bill!

22. Smoke Detectors

Next, you need to include a clause for smoke detectors. This can be a huge liability if you don’t discuss it. Ensure the tenant checks the smoke detectors and is satisfied before they move into your home. If there are any issues, you’ll have the opportunity to rectify it before it becomes a bigger problem. For example, if the house burns down and the smoke detectors weren’t inspected by the tenant and working properly, you could be faced with a huge lawsuit for damage. The situation becomes worse if someone is hurt or even dies from a fire due to outdated or broken smoke detectors. Without this area included in your lease, you could be liable for thousands upon thousands in damages, legal fees, and lawsuit payouts.

23. Right to Access Property

A landlord has the right to access their property on a reasonable basis for inspections and/or repairs, and your lease should reflect this. Include a clause that gives you regular access to your property, at least every six months or so, to check up on the property and your tenants. This way, you’ll be on top of any issues or damages and see how well your tenant is taking care of your home. Don’t simply assume your rights here; you must include them in the lease. If you don’t, what happens if there’s a small plumbing leak that’s causing major damage to your house, but you don’t have the right to reasonable access to your property? The tenant might not let you in, and they would have the legal right to do so. As a result, your investment would be destroyed by water damage, and you wouldn’t be able to get in and fix the problem.

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