If you're a real estate investor in Houston, you've got great earning potential from your properties.
Housing supply increased by almost 2% in 2023, which makes the city an attractive destination for home buyers and renters. If you've been on the lookout for a tenant, you won't need to keep looking for much longer!
But there's one catch: Can you ensure that your tenants honor their lease agreements? If you're not careful, you can end up with squatters who don't pay their rent, bills, or any extra fees!
Here's how to approach lease enforcement in Houston.
Always Collect a Security Deposit First
Your first step should be to collect a security deposit at the time of signing the lease agreement. The security deposit affirms that the tenant has the funds to pay your rent.
As an alternative, you can also charge a monthly fee along with the rent payment. This is permissible under Texas law, so you'll have to decide which is the best option for you.
With a security deposit, you can keep the money to cover the cost of property damages. You can also keep part or all of the money to cover the costs of unpaid rent.
Before preparing a rental agreement, make sure you speak to a real estate lawyer. They'll help you prepare an agreement that remains within the confines of Texas law.
Find the Best Tenants
The easiest way to avoid lease violations is to find responsible tenants. You should always ask tenants to provide proof of income. You want to check that they have financial security before renting your property.
Ask them for references as well. You should contact their previous landlords to inquire about them.
Don't be in a rush to find a tenant. Even if they can afford to pay your rent, you should only rent your property to someone you feel comfortable with.
You have to treat your relationship with your tenant as you would any business relationship. Your tenant is your client, and you should only work with clients you feel comfortable with.
Hire a Property Manager
The final suggestion is to hire a property manager. Property management services will assist you with your landlord duties.
For example, they can help you find tenants. They'll also collect rent and other payments from your tenants. They can arrange for maintenance procedures such as property inspections.
They play an invaluable role in making your property desirable to potential tenants. Once you've found a property manager, you're ready to put your property on the market!
Ensure Lease Enforcement
Now you know how to ensure lease enforcement for your properties in Houston. You should either collect a security deposit or charge a monthly fee along with your rent. Hire a lawyer before you prepare a rental agreement.
One of the easiest ways to avoid lease violations is to find responsible tenants. If you hire a property manager, they can help you find tenants and deal with the other challenges of being a landlord.
Are you looking for a property manager? Precision Realty & Management is waiting to hear from you!
