Whether you should get a tenant for your property or not is relatively simple. Those strategies that involve buying and selling your property within a short time frame such as a Fix And Flip obviously do not involve tenants, whereas any strategy that aims at longer time frames does involve getting tenants to give you your passive income. I’ll focus on that aspect as it also has an impact on your strategy itself. For example, the location plays a big role as some jurisdictions such as Germany have more tenant-friendly laws, whereas as others such as the UK have more landlord-friendly laws.
Landlord Rights And Responsibilities
As a landlord you have certain rights, but also responsibilities. Those naturally vary depending on the location you invest in and could even be different within the same country, between different states, or even cities. Therefore, it is important that you fully understand your tenant’s rights and obligations before committing to be a landlord in that jurisdiction.
These are some obligations as a landlord that you can expect to be valid across many jurisdictions:
- Provide shelter for the tenant
- Ensure the safety and security of your property
- Conduct maintenance and major repairs
- Comply with relevant laws and regulations
- Insure your property
- Pay property tax
- Administer or register the tenant’s deposit
- Keep certificates current/renew when due
Beyond the legal ownership rights to the property, as a landlord you have the right to charge the tenant appropriate rent, collect a deposit, enhance your property, and access it after having given notice to the tenant and to evict the tenant in accordance with the law if he or she fails to pay the rent over a certain period of time.
Tenant Rights And Responsibilities
Your tenant will also enjoy certain rights and have certain responsibilities. These are some obligations that you can expect your tenant to have across many jurisdictions:
- Place a deposit and pay rent (on time)
- Abide by the tenancy agreement and house rules
- Pay utilities
- Maintain interior in its original condition (less reasonable wear and tear over time)
- Cleaning during tenancy and before moving out
- Maintaining the drains, gutters and garden
- Not to use the property illegally
- Not to cause nuisance and excessive noise
- Notify landlord if property needs repairs
- Grant access to landlord (with advance notice)
Your tenant will have a right to occupy and fully use your property for the duration stipulated in the tenancy agreement, live in the property without harassment, and to make minor changes (e.g. install a shelf on the wall or such).
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