The 10 Commandments You Should Give Your Tenants

Landlords and tenants have a unique relationship, with both dependant on the other, at least to some degree. Tenants need a place to live, and landlords need tenants if they want to make money off their investment. Like all relationships, though, there are certain rules that must be followed in order to maintain a harmonious association between owners and renters.

One of the issues I see most often among property investors - and especially newbies - is a lack of authority. They don’t define their role early on, so tenants see them as weak or easy to take advantage of. Now, I’m not saying you should strut in, chest puffed out, and declare yourself as The Big Bad Boss, but you definitely should establish yourself as the person in charge.

The easiest way to do this is to lay some ground rules early on. Doing this details your expectations of your tenants, and it also lets them know that you’re not going to be a doormat landlord.

Here are the 10 commandments that I recommend to give to tenants:

1. Amount and due date of rent payment. Your tenants need to know, without question, what you expect from them as far as rent goes. And that expectation is that $xxx is due on xxx day. Period. If payment is late, you must outline the penalty for that, which is usually an additional fee expressed as a percentage of the rent or a certain dollar amount for each day the payment is late.
2. Security deposit. Your rental agreement should detail what the security deposit covers, along with any policies you have about damages/repairs that exceed the amount of said deposit.
3. Your right to enter the property. As the property owner, you have certain rights regarding entering it. In most cases, you are required to give tenants at least 24 hours’ notice that you will be entering the home, but this may vary from state to state. Check your local laws, and be sure your tenants are crystal clear on your right of entry as property owner.
4. Your rules about pets. Pets can be a touchy subject for landlords and tenants, and you need to make sure your renters understand your policy regarding animals. This includes what type of pets are allowed, if any, and what the consequences are if the animals cause damage to the home.
5. Cleanliness. This is another area that can cause friction, as the definition of “clean” can vary widely from one person to another. Establish guidelines about what constitutes cleanliness at your property, and let tenants know that you will not tolerate a slovenly home.
6. Yard and outdoor maintenance. No landlord wants their property to be the one with the overgrown and unkempt lawn. If you’re not providing outdoor maintenance and upkeep (mowing, weeding, etc.), make sure your tenant is capable and willing to handle these tasks on their own.
7. Vacancy notice. No one likes being surprised with an unexpected vacancy, so explain what your policy is if your tenants don’t plan on renewing their lease. Many landlords ask for 30 days’ notice, but whatever your policy is, it needs to be stated clearly in your rental agreement.
8. End-of-lease restoration. Whatever your rules are regarding semi-permanent alterations to the property (e.g., painting, satellite installation), most tenants expect their properties to be in the same condition at the end of the lease as it was at the beginning. If you expect your tenant to return the property to its original state, including any repairs necessary to get it that way, let them know in advance.
9. What stays and what goes when a tenant leaves. Some property owners provide furnished or partially furnished units for their tenants’ convenience. While most landlords don’t practice this, it’s not uncommon for other types of furnishings, such as window treatments, to come into question. Explain in advance what your policy is if this applies to you.
10. General respect for the neighbors. If the property’s neighbors are unhappy with the tenants, you can bet you’ll hear about it. Things like garbage left out, lots of traffic in and out of the home, and being too loud are common complaints. Make sure your tenants know your expectations regarding their behavior, and that if you hear any complaints from the neighbors, it could result in a terminated lease.

Setting rules and making them clear to your tenants is an important part of setting boundaries in your landlord-tenant relationship. It can also help ensure that you and your property are treated with respect. To be most effective, establish these guidelines early on, and be available to review them with tenants and answer any questions they may have.