Have you decided to become a landlord in Clarksville, TN? If so, it's a wise financial move; according to ZipRecruiter, landlords in this city earn an average yearly salary of $70,421!
However, your income will still depend on how effective your lease enforcement strategies are. If your tenants don't follow the rules, you'll unlikely get your rental income on time. You may even lose money, especially if they do something that would force you to evict them.
If you're unsure how to enforce a lease, don't worry. Our team at PMI Clarksville created this guide on lease compliance strategies, so read on.
1. Put Lease Terms Into Writing
Property lease regulations under Tennessee Code § 66-7-101 make written contracts for leases of at least three years mandatory. So, if you only plan to rent your Clarksville property for one year at a time, you aren't legally required to do this. However, it would still be in your best interest to sign a written lease with your tenant because:
- It can serve as proof if any problem arises with your tenant
- It gives renters a tangible reference for landlord-tenant rules
- Its tangibility can make it more effective in encouraging tenants to abide by the lease terms
When creating the lease agreement, use plain, direct-to-the-point language. Technical terms or jargon can make the contract's terms more challenging to understand and follow.
For example, suppose you welcome pets on your property under certain conditions. In that case, don't just write "pets allowed" in the lease. Instead, clearly explain the conditions, such as the number, type, or size of pets you allow.
2. Enforce Late Fees
Charging late fees can be an effective tenant agreement enforcement strategy to minimize delinquent payments. However, you must still follow state laws if you decide to enforce late fees.
Under Tennessee Code § 66-28-201, as a Clarksville landlord, you can charge a late fee of up to 10% of the rent due. However, you must also provide tenants with a five-day grace period starting the day following the due date.
Also, note that 10% may be too steep, especially if your rent is $1,000 or more. In many cases, charging 5% is more reasonable and helps avoid overburdening tenants. The more rent-burdened your renters are, the less inclined they will be to renew their lease.
3. Incentivize Good Tenant Behavior
By law (Tennessee Code § 66-28-401), tenants must behave accordingly, pay rent on time, and maintain the property's good condition.
However, it wouldn't hurt for you, their landlord, to incentivize their good behavior (e.g., always paying rent early or on time). It's an excellent way to boost tenant happiness and satisfaction, encouraging them to stay longer and renew their lease.
Let PMI Clarksville Help With Lease Enforcement
From putting your lease terms into writing to charging late fees and offering incentives, these are just some effective lease enforcement strategies you should implement as a Clarksville, TN, landlord.
If all that seems like hard work, consider partnering with PMI Clarksville.
Our full-service property management company specializes in rental management contract enforcement, marketing, tenant placement, and eviction protection. With our skills and expertise, plus the training we've received from PMI, a company that's been improving the property management sector for over 20 years, we can make your rental business thrive.
Speak with us today for a free property consultation!
