For current landlords and future investors, rental properties can be a sustainable model for passive income. Of course, there are a fair number of risks involved in this endeavor. You may get poor tenants, payment problems, and damages to your investment. Some of these things are out of your control, too. Still, the reward definitely outweighs the risks.
Renting out your home offers financial stability for years to come. You also have the flexibility to manage your other investments, as well. If you’re a young investor, you should take the time to review and figure out what you need for your rental lease. This is key to reaching an agreement that protects both sides.
In order to get the most out of your investment, as well as your landlord-tenant relationship, here are some things you need to remember when crafting your contract.
Update Your Lease as Often as You Can
This goes without saying, but there are some landlords who tend to forget to update the terms and conditions of their rental leases. Updating tenant names, lease dates, and more is pretty standard. Although you do have to take into consideration new laws and requirements. Whether it’s about changes in the rental price or adhering to new landlord-tenant laws, updating the language on the lease should be a priority.
If everything is good, then just send it to them together with any other possible addendums as attachments.
Specify the Rental Terms
Rental terms, lease start and end dates, payment and due date instructions, and the like are some things you commonly see in a basic lease template. Using one is absolutely fine, too. The easy part is filling in the details of the property.
However, adding other things like tenant conduct, maintenance protocol, and even notes on certain utilities is your duty. Here, you should be thorough and specific about any rules or preferences you have for your property. Your tenants should also know how to handle any repairs or specifications for different appliances in the property.
Make Sure To Add Clauses
Jointly and Severally Liable, Access to Premises, Sublet Rules, and Disturbance clauses are only some of the many ones you can add to your rental lease contract. Yes, it seems like a lot of work, but this is for your own safety. The clauses are another way of letting tenants know their responsibilities and rights.
This ensures that any legal issues can be resolved in a timely, orderly manner. Clauses are worked into agreements for the benefit of both the tenant and landlord. Take advantage of them as much as you can. This is how you can turn your lease into a guidebook if you will.
Use an Online Lease
Consider how your lease is going to be stored. These days, it’s best to create an online lease. Apart from the fact that it’s easier to customize, it means less paperwork for you. Those legal documents can be pretty tedious. If you upload your documents, you can simply add, switch, edit, or delete anything you need as conveniently as possible, from anywhere, whenever you need to.
Backing up the files eliminates the chance of anybody ever claiming they lost their copy. Signing the lease will also be a lot simpler to do. Digital signatures, after all, are recognized under the Philippines’ Electronic Commerce Act.
Yes, it sounds like a lot of work. This part of the transaction process isn’t for everyone. So if you are looking for property management services, Ohmyhome can take care of the dirty work for you, from collecting rent to handling bills payments. Finding the right tenant is also made easier through our online database and the ShoutOut feature on the official Ohmyhome app.
These are some of the little things that make all the difference in the world of property rentals. Remember, these are meant to make the tenant-landlord relationship much, much better. These will make sure that both parties know what’s expected of them and how your tenants should be taking care of your home.
Looking for the right tenant? Feel free to get in touch with an Ohmyhome property agent to get started. For more information on the best and latest property listings nationwide and how our Ohmyhome’s online ecosystem helps investors and landlords like you, visit Ohmyhome.com or download the official Ohmyhome app.
Ohmyhome was launched in the Philippines in September 2020, following the company’s establishment of a tech team in the country in 2017. Ohmyhome was originally founded in 2016, and subsequently rose in Singapore as a leading PropTech solution and licensed real estate agency.
Ohmyhome expanded into the Philippines so that Filipino home seekers can have a real estate partner that they can trust to have their best interests at heart and can be relied upon to provide exceptional services throughout the entire property journey.
Featuring thousands of properties across many of the Philippines’ major real estate brands, Ohmyhome differs from other local platforms by going the extra mile and extensively helping buyers narrow down their choices and find the property that best suits their budgets, home needs, and lifestyle preferences.
The company’s Real Estate Agents not only help in the shortlisting of options but also provide professional services through the entire purchasing process. These include assistance in property inspections, negotiations, the finalization of the Conditions of Sale, deposit collection, the submission of property documents, as well as providing buyers regular updates.
Ohmyhome helps Filipinos find their dream homes, all while making sure each real estate transaction is complete and is an efficient and enjoyable experience.