Investing in rental properties is a smart move that generates substantial income. However, being prepared with the necessary paperwork is the key to a successful and hassle-free transaction. Here are 10 essential documents you’ll need as a rental property investor.
1. RENTAL APPLICATION
A vital document in the tenant screening process, this form is accomplished by applicants and discloses their important personal and financial information. A rental application will normally request the applicant’s full name, contact details, employment history, income verification, rental history, references, and consent to credit or background checks.
2. LEASE AGREEMENT
This document outlines all of the terms agreed upon by the tenant and landlord. It goes beyond specifying the start and end dates of the lease and covers various other aspects such as the amount of rent and the due date, as well as the tenant’s responsibilities during their occupancy. It also explicitly describes your responsibilities as a landlord, making it a vital contract that governs the landlord-tenant relationship.
3. PROPERTY INSPECTION REPORT
This report describes a rental property’s condition before and after the tenant moves in. The document includes descriptions, photographs, and videos of the property’s interior and exterior – serving as a reference for damage and repairs.
4. MOVE-IN/MOVE-OUT CHECKLIST
Every landlord should have a move-in/move-out checklist which helps monitor the property’s condition during a rental transition. A thorough inspection is conducted, documenting any damage to walls, floors, appliances, or fixtures. When moving out, the checklist makes it easier to compare damage and modifications, allowing for accurate deductions from the security deposit. A checklist guarantees transparency and protects both parties’ interests.
5. RENT RECEIPTS
This crucial document verifies payment by the tenant to the landlord. Rent receipts typically include the date and amount of payment, the rental period, the property address, and the names of both the tenant and the landlord. Other information, such as payment methods or outstanding balances, may also be included on receipts.
6. MAINTENANCE AND REPAIR RECORDS
The purpose of these records is to verify that properties are properly maintained and to track the history of property maintenance. These records contain relevant details such as dates, work descriptions, and costs associated with the upkeep and repairs of a property. They are an invaluable reference for future maintenance plans and proof of legal compliance.
7. EVICTION NOTICE
When tenants violate lease agreements or fail to pay rent on time, landlords use the eviction notice as a legal document. This is a formal procedure that initiates the eviction process and complies with local laws. In this notice, landlords clearly explain their intentions to regain possession of the property because the lease terms have been breached. The eviction notice describes the repercussions of noncompliance and offers a timeframe for the eviction process – at the same time, ensuring transparency and respecting each party’s legal rights. These are only a few of the documents you’ll need when investing in rental properties. For more detailed information, you can contact the local experts at Team Schlopy. Not only can they assist you with the complex process of investing in real estate but they’ll also make sure you find the right Park City investment property.