You have to protect your best interests as a property owner, especially if you have tenants living in your building. A part of protecting your investment is to build a good relationship with your tenants.
According to CNBC, many tenants nowadays experience life events that may make it difficult to pay rent or stay within a lease. Knowing how to navigate these situations can build relationships, save money and help you remain on the right side of the law.
Be open to discussion with your tenants
If you do not talk with your tenants, you could lose money. Tenants may refuse to pay and while you can go after them for payment, they may not have it to give. If your tenant has difficulty paying rent or needs to break the lease, you can consider lowering the monthly payment for a specific amount of time. If your tenant stops paying entirely, you can lose more money than reducing the costs.
Use specific language in the lease
Your lease should always address the consequences of breaking the lease. A standard solution is to ask for a fee to break the lease. For example, you can ask for two months’ rent to break a lease. This gives you time to find a new tenant without losing money.
Additionally, your lease could include language that allows the tenant to find a new person to take over the lease.
In addition to negotiating with your tenants, you may include a clause in the lease for disasters. For example, natural disasters or catastrophes may allow the tenant to break the lease.