Make renters insurance mandatory
Insurance companies have also created special products for renters, which they usually call renters insurance. It covers tenants’ valuables and protects them from liability claims in the event of an injury.
In most jurisdictions, renters insurance is optional but landlords reserve the right to require it from their tenants. Compulsory renters insurance reduces your personal risk exposure. It also helps you attract a better quality tenant, further enhancing the value of this strategy.
Establish clear rules (and enforce them)
Most jurisdictions give landlords the right to place reasonable restrictions on tenant activities. If you have a building with multiple dwellings, it is especially important to have a clear set of rules. Bad neighbors are no fun for anyone, and they can cause you to lose tenants you would have loved to keep.
When you make the rules, you also have to enforce them. Otherwise, tenants who are more than willing to break them will notice your generosity. This can increase the dispute further.
put everything in writing
Formal rental agreements are standard practice. However, if you’re hiring someone with whom you have a personal relationship, you may be tempted to keep things informal as a show of good faith. This is generally not a good idea, as it can create legal liabilities and give you little recourse in the event of a dispute.
Make sure that all the terms and conditions of the rental are clearly spelled out in your written contract. All policies (regarding pets, parking, bills, property maintenance, snow removal, property regulations, etc.) should be covered. Be sure to cover the respective responsibilities of both parties, not just the tenant.
