Are you planning on renting out one of your properties for additional income? If so, you'll need to be familiar with tenants rights. The people renting your property have the right to stay in a place that is maintained and safe. However, there are some differences for long term renters that have a lease and short-term renters that do not have one. Here is what you need to know for situations with short-term and long-term tenants.
Know the Differences in Legal Status
Any tenant with a lease will have their own legal status when it comes to staying in the property. The lease that they signed will define the length of time that they can stay in the property, how much rent will cost, and other state law regulations that apply to them.
It can be difficult to kick a tenant out once a lease is signed. You must follow the state procedures for eviction because the tenant will have rights to stay in the property unless the proper procedures are followed. Tenants have the right to break their lease if they want to, but there could be associated fees for breaking the lease, including the loss of their security deposit or having to pay a portion of additional months of rent.
Short-term renters using your property for a vacation rental have a different legal status. They are not considered a full-time tenant, but a temporary tenant or sub-lessee instead. It is much easier to remove a short-term renter from a property if necessary due to their legal status. You do not need to follow an eviction process.
Know the Risks of Renting to Short and Long-Term Renters
There are more risks that come with renting to a short- term renter. For starters, you typically don't receive a security deposit from a short-term renter before their rental begins. There is always a possibility that they can cause damage to your place that needs to be repaired, and it can be difficult to get that money back from the renter.
Thankfully, it is your property, so you can require any type of security deposit you want before the rental agreement is official. It may make some short-term renters weary of renting your property, but it will give you peace of mind that your property will be protected. It is more common for long-term renters with a lease to be required to leave a security deposit. This will protect you in case the lease is broken.
If you need help managing a rental property due to the confusion with dealing with renters, contact a property management company, like MacPherson's Property Management, that can help.