Properly managing your properties is the only way to ensure your investments into the real-estate market will be profitable. While there are hundreds of variables involved with the adequate management of real-estate properties, one of the most cumbersome yet vital aspects is the paperwork: property management forms, to be exact. Thankfully, due to modern technology, the trees can breathe a sigh of relief since many forms are now digitalized and are not actually mad of paper. Regardless of their form, they still need to be filled out with accurate and highly sensitive information from yourself and your tenants as well.
These Are the Forms You Will Need From Your Tenants
For potential tenants, some of the first forms you will provide will need to show the layout and specifications of your properties. These specifications should also include pricing for specific property sizes. While they are deciding on their potential home or base of business operations, you are organizing a series of documents you asked them to provide for you. These documents should include, but are not limited to: a valid drivers license or state issued ID, a recent pay stub that includes employers name and contact information, a birthday, and a Social Security Number. All are needed to run a full background check on your potential tenant. These forms of documentation can vary depending on if your tenant is looking for a residential property or a commercial property. If they are looking for a commercial property, you need to ensure they provide a valid business license and that the type of business they want to open is in line with zoning ordinances imposed by local and state governments. All of this information will need to be integrated into whichever type of file system you use to keep track of your tenants. Property Management Software would be the most secure because you are housing highly sensitive information.
These Are the Forms You Will Need to Give Your Tenants
After your potential tenant has decided on the property that is right for them and all of their information indicates they are a prime candidate to rent your property, it Is time to give them the most important property management form. This form is the lease itself. A lease is a contract between a landlord and their tenant that establishes an agreement that a tenant will live in and pay the rent of a specific property for a designated amount of time. The landlord also has the responsibility of keeping their property up to code, which includes making sure their property is within reasonable habitable conditions for the tenant. Both the tenant and the landlord are capable of causing a breach of this contract. The tenant can breach the contract by terminating the lease early or failing to make rent payments, which would generally result in an eviction. Also, if the tenant is using the property as a commercial space, they need to have all the proper permits to conduct whatever kind of work they are doing. Since it is your property, you need to decide what kinds of insurance you may be required to provide to protect your property and your return on investment. The landlord can also breach the contract by not maintaining housing or building codes imposed by the state or other local governments. If a property is no longer habitable for the tenant, a constructive eviction will generally occur. This means the tenant will be removed from the property and the lease will be terminated, however , the tenant will have no responsibility to make further rent payments.
The Forms Keep Coming, Even After the Lease
Some might think the forms stop coming after the signing of a lease, but I hate to inform you that the forms never stop. This is especially true if you have multiple properties to manage. If you have multiple properties, the same tenant lease process will just repeat itself for as long as you are in operation. But I am sure you already knew that. There are still forms to fill out for established tenants that need to be taken into consideration as well. All this paperwork is called Property Management Forms for a reason. They deal with the constant struggle that is managing your tenants and the properties they are living or operating out of. Tenants who are operating a business may want to expand or start new operations from within your property. This could mean new equipment, more employees, etc. These variables can greatly affect the codes imposed on that building. So if you want to keep this tenant, you need to ensure that during their changes everything is up to code and all permits have been acquired, notarized, and filed. These properties may also need regular maintenance, and a proper work order would be the appropriate form to allow your tenants to fill out. For residential properties and commercial properties alike, the collection of rent or lease payments is a vote process to your business. As I stated earlier, this process my be done electronically, but it is still paperwork nonetheless. Statements of missed or late payments need to be issued as well within a timely manner, so your tenants will be aware of their outstanding payments. Moreover, if a tenant is a candidate for eviction, they need to promptly be provided with an eviction notice so they know where they legally stand and clearly know what they need to do if they want to continue to occupy your property legally.
It Is All There for A Reason
The stress involved with maintaining property management forms will not pass in vein. All these forms are there to protect you and your tenants legally and financially. Forms are a means of holding yourself accountable for your properties and your business. All this responsibility may seem overwhelming, but there are tools out there to help you, like property management software. Having all of your bases covered sets your investments up for growth and success, and maximizing your return on investment makes all of your effort worth it in the end.